Overall property investment in the Riviera totalled €2.1 billion last year. While this figure is -12.7% below 2019 volumes, the total number of deals is almost on par with pre-pandemic levels, down just -3% on 2019, and 41% above lows seen in 2021. In 2022, there was a flurry of activity in the region – a result of pent-up demand following lockdowns, and supply has been unable to match the demand.

It is worth noting that ultra-prime properties with large estates rarely come to market, with some properties transacting less than once a generation. This can cause large variance in the average property values and overall investment on a year-to-year basis.

While transaction volumes have slowed, pricing has shown resilience. Prices in the Riviera, on a square metre basis, rebounded by 12.7% in 2021. Since then, prices per square metre have reached a plateau, growing 1.3% and 1% in 2022 and 2023, respectively. Higher interest rates and economic volatility have affected pricing and investment across the region but there remain strong demand-side fundamentals throughout the market. While both remain below 2019 levels, outside of the post-lockdown surge in investment in 2022, continued supply constraints have the potential to support price increases to prepandemic levels consistently in the future.

Prime residential prices vary greatly by submarket. Saint-Jean-Cap-Ferrat and Saint-Tropez, both of which have global recognition and reach, have average price per square metre ranges of €15,000 to €45,000 per sq metre, more than double some countryside locations such as Valbonne and Mougins (€6,000 to €17,000 per sq m). The price differential between the areas of the Côte d’Azur is not down to the calibre of properties in each location, rather the land- and supply-constrained nature of the coastal areas.

Demand drivers

Buyers across the Côte d’Azur are as varied as the locations along the Riviera themselves. While domestic French buyers are important, the market draws from a truly global pool of demand. European buyers tend to be from the Benelux region, Scandinavia, Germany and the UK, as well as eastern Europe. Monaco also remains a source of buyers, with residents of the Principality turning to the Riviera for second homes.

From farther afield, there remains a high level of activity from buyers from across the Middle East, with the Riviera a perennial draw. In recent years, there has been increased activity from American buyers who have been drawn to the Riviera lifestyle and have benefitted from the comparatively stronger US dollar which has made buying into the market less expensive than in years past.

For new arrivals to the region who are looking to determine the ideal location along the Côte d’Azur to buy, rentals are appealing, and many choose to do so for a month to the whole season. Across the Riviera, properties for rent tend to range from €20,000 to €25,000 per month, but the largest and highest calibre properties can let for up to €400,000 per month. However, considering the seasonality of many markets in the region, longer-term rents of a full year or longer are not as common outside of the major cities of Nice and Cannes.

_{Read the articles within Savills Spotlight on the Côte d’Azur report below}