Authored by the expert who managed and guided the team behind the France Property Pack
Yes, the analysis of the South of France's property market is included in our pack
Why is the South of France such a standout destination for real estate investment in 2025? Is it the luxurious lifestyle, the stunning landscapes, or the cultural richness that draws investors? What are the key advantages for those looking to invest in this picturesque region?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in the South of France's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
1) The South of France is a luxury hotspot, attracting wealthy buyers and boosting property values
The South of France is a magnet for luxury living, drawing wealthy individuals from across the globe.
In hotspots like Nice and Saint-Tropez, property prices are soaring. For example, Saint-Tropez has seen a 15% increase, with prime properties now fetching €18,000 per square meter. This surge is a testament to the area's allure and exclusivity.
Luxury villas and estates are in high demand, especially those priced over €5 million. These properties make up 30% of all transactions in the French Riviera. The majority of these buyers are international, with over 60% of luxury purchases exceeding €5 million coming from abroad, notably from GCC countries.
Investors are also drawn to the South of France for its high rental yields during peak tourist seasons. This makes property investment not just a status symbol but a lucrative opportunity. The limited availability of prime real estate has led to a 15% drop in available properties compared to 2023, creating fierce competition among buyers.
This scarcity of prime real estate is a key factor in driving up property values. With fewer properties on the market, buyers are willing to pay a premium to secure their piece of paradise.
For those considering a purchase, understanding these dynamics is crucial. The South of France offers not just a home, but an investment in a lifestyle that continues to captivate the world's elite.
Sources: Vendome Property, Vendome Property
2) The South of France’s stunning landscapes make it perfect for a second home
The South of France is a dream spot for second homes, thanks to its stunning natural beauty and diverse landscapes.
In September 2023, the region saw a boom in vacation rentals, with active listings reaching 148,571. This shows just how popular the area is as a holiday destination, attracting visitors from all over the globe.
Property values are climbing, especially in coastal areas like Bayonne, where prices jumped 14.8% in 2022 and another 11.8% in 2023. This makes the South of France a hot spot for those eyeing a second home investment.
The tourism sector is thriving, contributing a whopping €246 billion to the national GDP in 2023. International visitors alone spent €66.7 billion, highlighting the region's irresistible charm.
Short-term rentals are in high demand, with occupancy rates peaking at 74% in August 2022 and 2023. This trend reflects the area's seasonal tourism, bustling in May and quieter in December.
Luxury real estate developments in places like Saint-Tropez and Nice are drawing high-end buyers, adding to the region's allure with premium properties.
Sources: PriceLabs, WTTC, Long Term Rentals in France
We made this infographic to show you how property prices in France compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) The South of France’s strong economy boosts property value appreciation
The South of France, especially the Provence-Alpes-Côte d'Azur region, boasts a thriving local economy that boosts property values.
Luxury villas and holiday homes are in high demand, with international buyers from the U.S. and the Middle East flocking to the area for its Mediterranean charm and rich history. This influx of interest keeps the real estate market lively and competitive.
Tourism is a major player here. As France's top tourist spot, the region offers a mix of sea, sun, and mountains, which keeps rental yields high and properties in demand. This vibrant tourism sector ensures that investing in property remains a smart move.
Economic growth is another feather in the region's cap. Contributing to 6.8% of France's GDP, Provence-Alpes-Côte d'Azur is the country's third-largest economic powerhouse. The area also enjoys a lower unemployment rate than the national average, thanks to initiatives like the ERDF-ESF Programme that focus on job creation.
Infrastructure is top-notch, with two international airports and a major port in Marseille-Fos enhancing connectivity. These developments, along with government incentives for property investment, make the region even more appealing for both businesses and tourists.
All these factors create a perfect storm for economic growth and property value appreciation, making the South of France a prime spot for property investment.
Sources: Adrian Leeds, Circabc Europa, European Commission
4) The South of France offers a resilient property market, ensuring investment security during economic downturns
The real estate market in the South of France has shown remarkable resilience during economic downturns, providing a sense of security for investors. One key factor is the stability in property prices. Even during the economic challenges of 2023 and 2024, property prices in the region remained stable, with only minor decreases observed, maintaining levels similar to those in early 2022.
Another important aspect is the consistent demand for properties in the South of France. Reports from real estate agencies highlight robust interest from international buyers, including those from the UK and the US, which has helped sustain the market even during tough economic times. This demand is particularly strong in areas like Nice and the Alpes-Maritimes.
Additionally, expert opinions and forecasts suggest that the South of France's property market is a secure investment. The Global Property Guide, for instance, projects growth in the French residential property market, indicating long-term stability. Furthermore, the region's appeal to high-net-worth individuals, especially in tourist hotspots like the Côte d’Azur, continues to support property values.
Sources: Adrian Leeds, Mordor Intelligence, Global Property Guide
5) In the South of France, you’ll find everything from historic villas to modern apartments, suiting all investor tastes
The South of France is known for its diverse range of properties, offering something for everyone. From historic villas to modern apartments, the region caters to various investor preferences. This diversity is evident in the variety of property types available, such as the "Californian Gem Nestled in the Heart of Nature" in the South-West region, which is a modern 400m² property near the Pessac golf course.
Market reports highlight the diversity of property styles, with examples like the "Charming Villa" in Le Cannet, close to shops and schools, and less than 10 minutes from the center of Cannes. This shows that the area offers both convenience and charm, appealing to different tastes. Additionally, trends in property development showcase new modern apartment projects alongside preserved historic villas, such as the 250m² Californian-style villa in VALLAURIS with panoramic sea views.
Surveys of investor preferences indicate a strong interest in both historic and modern properties, with 75% of people in France dreaming of living in a detached house with a garden. This suggests a balanced demand for both types of properties. Furthermore, international buyers are investing in both historic and modern properties, like the "Stunning single-story villa in Hauts de Vaugrenier" in Villefranche-sur-Mer, which combines elegance with modern amenities.
Sources: Mordor Intelligence, Long Term Rentals in France, Estate Prestige
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6) The South of France’s cultural heritage and festivals attract tourists, boosting short-term rental demand
The South of France is a magnet for international visitors, thanks to its rich cultural heritage and vibrant festivals. In recent years, France has been on track to become the world's most visited country by 2025, with an estimated 93.7 million international visitors. This surge is largely due to the country's cultural attractions and efficient transportation network.
One of the key indicators of this trend is the high occupancy rates for short-term rentals in the Provence-Alpes-Côte d'Azur region. These rates peak during the summer months, reaching 74% in both 2022 and 2023, which aligns with the festival seasons. This pattern shows a strong demand for short-term accommodations when cultural events are in full swing.
Moreover, the Nice Carnival in 2024 exemplified the economic impact of such festivals, drawing 230,000 visitors and generating 35 million euros for the local economy. The event also boosted hotel occupancy rates, peaking at 87% during its main weekend. This demonstrates how cultural events not only attract tourists but also stimulate the local economy.
Sources: The Drinks Business, PriceLabs, Invest in Côte d'Azur
7) Food and wine lovers flock to the region, boosting tourism and rental demand
The South of France is a hotspot for food and wine lovers, driving up tourism and rental demand.
In 2023, France saw a staggering 100 million international visitors, with the South playing a key role. This surge is largely thanks to the region's rich culinary and wine culture.
Food and wine festivals like the Aniane Wine Festival and Paille et Ripaille are major attractions. These events draw wine enthusiasts from all over, eager to dive into local winemaking traditions and savor regional specialties.
The atmosphere at these festivals is electric, celebrating local culture and pulling in even more visitors. It's not just about the wine; it's about the experience.
The South of France is also famous for its fine dining, boasting numerous Michelin-starred restaurants. As of 2024, France has 639 starred eateries, showcasing its culinary prowess.
Tourists flock here for the chance to indulge in world-class dining experiences, making it a must-visit for any food enthusiast.
Sources: Phocuswright, Wine Tourism, Michelin Guide
8) With events like the Cannes Film Festival, you’ll see high demand for short-term rentals
The presence of international film festivals like Cannes creates a significant surge in short-term rental demand in the South of France. This is primarily because the festival attracts thousands of international visitors, including journalists, filmmakers, and industry professionals, making it a major event in the global film industry.
During the Cannes Film Festival, hotel prices skyrocket, with average rates reaching €508 on May 19th and €526 on May 20th. This high demand for accommodations leads to increased occupancy rates, with saturation from OTA portals estimated at 71.9% on May 19th. As a result, short-term rentals become a popular alternative for attendees seeking more flexible and potentially cost-effective lodging options.
Property owners report significant rental income spikes during the festival, with prices for accommodations peaking at €1,250 on May 22nd. This surge in demand is further supported by testimonials from property management companies, which emphasize the importance of booking early to secure the best options, as thousands of attendees flock to the city, causing accommodations to fill up fast.
Sources: Datappeal, Asian Age, Enso Connect
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of France. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) The area's popularity for international events makes it easy to rent out short-term accommodations
The South of France is buzzing with international conferences and events, skyrocketing the demand for short-term accommodations.
In 2023, the Cannes Lions International Festival of Creativity alone brought in nearly 102 million British pounds, highlighting its massive draw and economic impact. This kind of high-profile event attracts thousands of visitors, all needing places to stay, which naturally boosts the demand for short-term rentals.
Every year, the region welcomes over 5 million visitors, with Nice standing out as a major tourist hub. These visitors aren't just here for the beaches; many are attending the numerous international conferences and events. For example, the upcoming ICGDA 2025 in Nice is set to bring in scholars and experts from around the globe, further increasing the need for accommodations.
Events like the Cannes Film Festival and MIPIM have a huge economic impact, significantly contributing to the local economy. They don't just bring in revenue; they create a ripple effect, boosting the tourism sector and increasing the demand for short-term rentals.
Property management companies have noticed a spike in bookings during these events, highlighting the financial benefits for property owners in the region. This trend is a golden opportunity for those considering investing in property here.
With the South of France being a magnet for international gatherings, the demand for short-term accommodations is only set to grow. This makes it an attractive prospect for property investors looking to capitalize on the region's vibrant event scene.
Sources: Statista, ICGDA, Explore Nice Côte d'Azur
10) The South of France is perfect for international buyers because it’s a gateway to other European destinations
The South of France, with its stunning regions like Provence and the Côte d'Azur, is a prime spot for reaching major European cities.
Thanks to Nice Côte d'Azur Airport, you can easily hop on flights to places like Paris, Milan, and Barcelona. This makes it super convenient for international travelers and potential property buyers. In 2024, the airport saw a 3.7% increase in passenger traffic, with a big jump in international flights, especially a 44.1% increase in traffic with the United States. This shows how the region is becoming more connected and attractive to buyers from around the world.
Besides flying, the South of France is also a breeze to navigate by train. The high-speed TGV whisks you from Nice to Paris in under 3.5 hours. This quick connection is a big draw for both tourists and business travelers, making the area even more appealing as a European gateway.
Imagine owning a property here and having the luxury of quick trips to other European hotspots. The ease of travel adds a layer of allure for international buyers looking for a home base in Europe. The South of France isn't just about beautiful landscapes and culture; it's a strategic location for exploring the continent.
With its blend of accessibility and charm, the South of France is a top choice for those wanting a slice of European life. Whether you're jetting off for a weekend in Milan or a business meeting in Paris, the region's connectivity is a major perk.
Sources: Aviation News Online, Meet in Nice Côte d'Azur, Condor Ferries
11) A strong expat community means you’ll always find demand for housing in the area
The South of France has become a popular destination for expatriates, which has led to a strong demand for housing in the area. One of the key reasons is the high percentage of foreign-born residents living there. As of December 2023, a significant portion of France's foreign-born population resides in the South, contributing to the vibrant expatriate community.
Another factor is the increasing number of international schools and services catering to expatriates. With 152 international schools in France, many are located in the South, showing a steady growth in demand for international education. Schools like the Centre International de Valbonne and Mougins School attract expatriate families, further supporting the need for housing.
Additionally, the property market in expatriate-favored areas has shown consistent growth. Despite some fluctuations, property prices have increased significantly over the past five years. Areas like Alpes-Maritimes have seen a steady rise in foreign property buyers, indicating a strong interest from expatriates in settling down in the region.
Sources: Trading Economics, Relocate Magazine, Wretman Estate, Curious Provence, Long Term Rentals in France
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12) Being close to the Mediterranean boosts property value because many people want to live by the coast
Proximity to the Mediterranean Sea enhances property value due to the high demand for coastal living. This demand is driven by several factors that make coastal areas particularly attractive to buyers and investors.
Firstly, the Mediterranean climate is a significant draw. Coastal towns like Nice maintain high rental demand year-round because of their pleasant weather, which is appealing to both tourists and long-term residents. This consistent demand helps keep property values high.
Additionally, the South of France is a major tourist destination, with regions like Provence-Alpes-Côte d'Azur attracting millions of visitors annually. This influx of tourists generates substantial revenue and creates a thriving market for vacation rentals, further boosting property values in these areas.
Moreover, there is a documented preference among retirees and expatriates for coastal living, driven by the desirable lifestyle and scenic views. Properties with sea views, such as those in La Rochelle and Menton, command premium prices, reflecting their high desirability.
Sources: Long Term Rentals in France, Consulate General of France in Vancouver, Renestance
13) In the South of France, tax incentives boost your property investment returns
The South of France has been offering tax incentives to property owners, which can enhance investment returns. These incentives are part of a broader strategy to attract investment and stimulate economic growth in the region. In the past, specifically in 2023 and 2024, property prices in France, including the South, were on a downward trend, with a predicted fall of 3% by November 2023. This decline in property prices created an opportunity for investors to enter the market at a lower cost.
One of the key incentives is the reduction in direct local taxation, such as property tax on built-up properties and business property tax (CFE). These reductions are particularly beneficial for the creation or expansion of commercial, artisanal, or industrial activities, subject to local authority decisions. Additionally, the French tax system is designed to be innovation- and investment-friendly, offering a 50% reduction in property taxes for industrial establishments, which amounts to €3.25 billion per year from 2021.
Moreover, the Green Industry Investment Tax Credit (C3IV) supports industrial sectors contributing to carbon neutrality objectives. This tax credit can be as high as 40% in specific geographic areas, making it an attractive option for companies investing in green industries. These incentives, along with the Research Tax Credit (CIR) for R&D expenditure, position France as a leader in the OECD for supporting innovation and investment.
Sources: French Tax System, House Prices in France, Tax Credits and Incentives
14) In the South of France, great infrastructure makes properties more accessible and appealing
The South of France is a hotspot for property buyers, thanks to its excellent infrastructure.
With the TGV high-speed trains, you can zip from major cities in the South to Paris and beyond in no time. This makes the region a magnet for both locals and tourists, who love the easy travel options. The extensive motorway network adds to this convenience, making it a breeze to explore both the coast and the countryside.
Regional airports like Nice Côte d'Azur and Marseille Provence offer a plethora of international flights. This is a big plus for anyone who travels frequently for business or pleasure. The South of France is well-connected to the world, which is a huge draw for property buyers.
In cities like Nice, Marseille, and Montpellier, modern public transport systems, including trams and buses, make getting around town a cinch. This boosts the quality of life for residents and makes the area even more appealing to those looking to buy property. Plus, the region has invested heavily in digital infrastructure, ensuring fast internet for work and play.
These infrastructure perks make the South of France not just a beautiful place to live, but also a practical one. Whether you're commuting to work or heading out for a weekend getaway, everything is within easy reach.
Sources: NextMSC, Go Languedoc, Meet in Nice Côte d'Azur, CoStar
We did some research and made this infographic to help you quickly compare rental yields of the major cities in France versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
15) With high-speed train links, the South of France is easily accessible from major European cities, making it more attractive
The high-speed train network in the South of France is one of the largest in Europe, with 2,800 km of tracks connecting major cities like Paris, Lyon, and Barcelona. This extensive connectivity makes it easy for people to travel quickly and comfortably from these major European cities to the South of France.
Travel times have been significantly reduced over the years. For example, the journey from Paris to Lyon now takes just 1 hour and 50 minutes, and you can get from Paris to Barcelona in just 6 hours and 29 minutes. This makes the region more accessible for both tourists and business travelers.
In 2023, the French National Railways reported a record ridership of 122 million passengers on domestic high-speed services, showing a growing preference for train travel. This increase in passengers is expected to continue, especially with the introduction of new trains.
Sources: Wikipedia, HS Rail, Rail Journal, Rail Europe
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.