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What will happen in the South of France’s real estate market? Will prices go up or down? Is the Côte d'Azur still a hotspot for foreign investors? How are local government policies impacting real estate taxes and regulations in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in the South of France, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) More foreign investors will target the South of France due to its political stability attracting international interest
Foreign buyers are increasingly targeting the South of France for investment, and there are several reasons for this trend. One of the main factors is the rising property prices in the region. Between 2019 and 2023, prime residential properties along the French Riviera saw a significant increase in value, averaging between 15% and 20%. This indicates a strong and growing market that attracts investors looking for profitable opportunities.
The political stability of France plays a crucial role in attracting international interest. France has maintained its top place in the European attractiveness rankings for foreign investment for five consecutive years, as of 2023. This stability, combined with a favorable business environment, gives foreign investors confidence in the region's long-term prospects.
Additionally, the luxury real estate market on the French Riviera is expected to recover from a previous drop in transactions, showing strong demand. The region's unique heritage and unparalleled lifestyle make it an attractive destination for the global elite seeking luxury properties. This is further supported by the expansion of international real estate agencies, such as Côte d’Azur Sotheby’s International Realty, which is increasing its presence in the area to cater to both sellers and buyers of luxury properties.
Sources: Beauchamp Estates, Welcome to France, Côte d’Azur Sotheby’s International Realty
2) Property prices in the South of France will drop moderately due to economic uncertainties affecting buyer confidence
The South of France is seeing a moderate decline in property prices due to economic uncertainties affecting buyer confidence.
In 2023, house sales across France dropped by 16.6%, with prices dipping just under 1%. This trend persisted into 2024, with property prices falling by 3.9% for both apartments and houses in metropolitan areas, signaling a market correction.
The French economy slowed down in 2023, with GDP growth at a modest +0.8%, a stark contrast to the 2.5% growth in 2022. This was due to weak household consumption and a drop in household investment, despite some growth from corporate investment and foreign trade.
Foreign investment in French commercial real estate plummeted by 36% in the first nine months of 2024, hitting the lowest level since 2013. This drop reflects political uncertainties and challenges in the office sector, further shaking investor confidence.
Real estate agents are noticing fewer inquiries and viewings, a clear sign of reduced buyer confidence. The market's cautious atmosphere is palpable, with potential buyers holding back.
Sources: Long Term Rentals in France, BNP Paribas Economic Research, Eleanor Moore
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) Fewer foreign buyers will invest in the South of France due to stricter visa rules for non-EU citizens
The South of France has long been a hotspot for foreign property buyers, but stricter visa regulations are now making it tougher for non-EU citizens to invest in this picturesque region.
Real estate agents in areas like the Dordogne and Luberon are noticing a shift. Inquiries from non-EU buyers have noticeably dropped, a trend that echoes the post-Brexit era when British interest waned. These regions, once bustling with international interest, are now seeing fewer foreign faces.
For non-EU citizens, the process of buying property has become more complicated. Visa issues are a significant hurdle, as confirmed by surveys and feedback from expatriate communities. Many are finding it increasingly difficult to navigate the new rules, which is dampening their enthusiasm for French real estate.
Government data backs this up, showing a decline in visas issued for property-related purposes to non-EU citizens. This drop highlights the tangible impact of the new regulations, making it clear that the South of France might not be as accessible as it once was for international buyers.
Local real estate markets are feeling the pinch. The once steady stream of foreign buyers is slowing, and agencies are adjusting their strategies to cope with the changing landscape. This shift is reshaping the property market dynamics in these traditionally popular areas.
As the South of France becomes less attainable for non-EU buyers, the region's real estate market is poised for change. Stricter visa rules are reshaping who can call this beautiful part of the world home, and it's a trend that could have lasting effects.
Sources: Long Term Rentals in France, Properstar, Adrian Leeds
4) Property development in the South of France will shift towards sustainable practices due to new environmental regulations
In recent years, the South of France has seen a significant shift in property development due to new environmental regulations. These regulations are designed to promote sustainable building practices, which are becoming increasingly important in the face of climate change.
One of the key drivers of this shift is the introduction of government incentives for sustainable building practices. The French government has been offering various grants and subsidies, such as the MaPrimeRénov grant, to encourage energy-efficient renovations and new constructions. These financial incentives make it more attractive for developers to invest in eco-friendly projects.
Additionally, new regulations like RE2020 and the Climate Law have set ambitious targets for reducing energy consumption in new buildings. These regulations also impose penalties for non-compliance, such as prohibiting the rental of poorly insulated homes. This has created a strong incentive for property developers to adopt sustainable building practices to avoid these penalties.
Consumer demand is also playing a crucial role in this transformation. Surveys have shown that there is a growing preference for sustainable homes among consumers, driven by a desire to reduce carbon footprints and promote eco-friendly living. This increased demand for eco-friendly properties is pushing developers to incorporate green building practices into their projects.
Moreover, the media's heightened focus on climate change and its impact on real estate has raised awareness about the importance of sustainable building practices. This has further fueled consumer demand for eco-friendly properties, making it a lucrative market for developers.
Case studies of successful sustainable developments in the South of France, such as the Athletes' Village for the 2024 Paris Olympics, have demonstrated the feasibility and market appeal of eco-friendly projects. These examples serve as a blueprint for other developers looking to capitalize on the growing demand for sustainable properties.
Sources: BCG, French Property, Côte d'Azur Sotheby's Realty
5) Coastal property demand in the South of France will be challenged by stricter environmental regulations to protect marine ecosystems
Coastal properties in the South of France are facing challenges due to stricter environmental regulations aimed at protecting marine ecosystems. In recent years, the French government has significantly expanded marine protected areas, particularly in the French Southern and Antarctic Lands. This expansion is part of a broader effort to protect biodiversity and meet marine conservation goals, which has implications for coastal property development.
For instance, the expansion of marine protected areas has more than doubled France's fully protected waters globally. This means that areas previously available for development or recreational use may now be restricted, impacting property values and development opportunities. Additionally, the Climate Law implemented by the French government requires that potential buyers and tenants be informed about coastal erosion risks, which could deter investment in these areas.
Moreover, climate change impacts such as rising sea levels and erosion are already posing significant challenges for coastal residents. With approximately 50,000 residences expected to need relocation by the end of the century, the real estate market in these regions is under pressure. The anticipated decline in property values and increased insurance costs further complicate the situation for property owners and investors.
Sources: Pew Bertarelli Ocean Legacy Project, Navigating the Real Estate Crisis in France, Marine Protected Areas that Protect Unreachable and Unexploited Areas
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6) Rents in coastal South of France will rise as they remain popular with international tourists
Rents in the coastal areas of the South of France are on the rise, and there are several reasons why this trend is likely to continue. One of the main factors is the increasing number of international tourists visiting France. In 2023, nearly 100 million international tourists visited the country, marking a 7% increase from the previous year. This surge in tourism is largely due to the global recovery in international travel and the return of major events like the Rugby World Cup.
The short-term rental market in France is also booming, with over 900,000 listings on platforms like Airbnb. The regions with the most significant number of listings include Provence – Alpes – Côte d'Azur, which is a popular coastal area. This growth in short-term rentals is expected to continue, especially with the 2024 Summer Olympics drawing more visitors to the country. As a result, the demand for vacation rentals in these coastal areas is increasing, contributing to rising rental prices.
Another factor driving up rents is the limited housing supply in popular tourist destinations like Nice. Despite a nationwide trend of declining property values, Nice has seen stable property prices, making it an attractive location for both domestic and international buyers. This limited supply, combined with high demand, naturally leads to higher rental prices. Additionally, studies have shown a strong correlation between tourism trends and rental market dynamics, with high occupancy rates and dynamic pricing among hosts being key drivers of rising rental prices in coastal areas.
Sources: Phocuswright, Rental Scale-Up, Adrian Leeds
7) Interest from foreign buyers in the South of France will stabilize due to changing global economic conditions
The South of France continues to be a top choice for foreign property buyers, thanks to its stunning landscapes and rich culture.
In 2023, foreign buyers made a comeback, with 1.8% of old housing purchases attributed to them. This marks a return to the market after previous declines. British buyers, despite Brexit, remain a significant group, alongside Belgians, Germans, Dutch, and Swiss. This diverse interest helps keep the market stable, even as global economic conditions fluctuate.
In 2024, the French housing market's downturn opened doors for cash buyers, especially foreigners. They could negotiate better deals without needing mortgages. This trend is expected to continue, making the South of France an attractive option.
Looking ahead, the region is likely to maintain its charm due to favorable exchange rates and a predicted drop in French mortgage interest rates. These rates are expected to fall below 2.5% by early 2025, making financing more accessible for international buyers.
This financial accessibility is crucial for stabilizing foreign interest in the South of France. As the market adapts to these changes, the region remains a solid investment choice for those looking to buy property.
Sources: French Property Market Report 2023, Notaires.fr, Economic forecast for France - Economy and Finance, French Real Estate Market Lessons From 2024...For 2025
8) More foreign buyers will invest in the South of France due to favorable exchange rates
Foreign buyers have been increasingly interested in the South of France, and this trend is likely to continue. In 2023, non-resident foreign purchasers were particularly active in regions like Alpes-Maritimes, drawn by the area's beautiful landscapes and relatively low property prices.
The stability of the Euro to U.S. dollar exchange rate, which was recorded at 1.03 USD in early 2025, makes investments in French real estate more appealing to foreign buyers. This stable exchange rate means that foreign investors can plan their purchases with more certainty, knowing that their currency will hold its value against the Euro.
American buyers, for instance, have become a significant group in the French property market, accounting for over 3% of all overseas buyers. Real estate agencies have noted an increase in inquiries and sales to foreign buyers, particularly in tourist-heavy regions like Nice and Marseille, which are popular for their vibrant economies and attractive lifestyles.
Sources: Long Term Rentals in France, Statista, French Estate Agents
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) Rental yields in the South of France will drop as more properties become short-term vacation rentals
The South of France has seen a significant increase in the number of properties listed on short-term rental platforms like Airbnb. For example, in April 2023, the Provence-Alpes-Côte d’Azur region had 138,000 listings, which marked a substantial rise from previous years.
This surge in short-term rentals is largely driven by the region's popularity as a tourist destination. With events like the Paris 2024 Summer Olympics boosting tourism, more visitors are opting for short-term rentals over traditional hotels, further fueling this trend.
Local governments have responded by tightening regulations on short-term rentals to address the shortage of affordable housing. These measures include reducing tax breaks for tourist properties and setting quotas for furnished accommodations, indicating a shift from long-term to short-term rental conversions.
The increasing demand for short-term rentals has led to a decrease in the availability of long-term rental properties, making it difficult for local residents to find housing. This trend is supported by media reports and testimonies from residents who struggle to secure long-term rentals.
Sources: Rental Scale-Up, Planetizen, Long Term Rentals in France
10) Rental yields in the South of France will stabilize due to new rental regulations being introduced
In recent years, the South of France has seen relatively stable rental yields, with cities like Toulouse and Montpellier showing average gross rental yields of around 4.26% and 4.52% in 2024. This stability is expected to continue as new rental regulations come into effect in 2025.
The new regulations include changes such as reduced tax benefits for non-classified short-term holiday rentals and stricter energy efficiency standards. These measures are designed to make short-term rentals less attractive, thereby encouraging more properties to be used for long-term rentals.
Real estate analysts and government reports suggest that these regulations will lead to a stabilization in rental yields. By redistributing housing stock toward permanent residents and encouraging professionalization in the tourist rental sector, the market is expected to become more balanced.
Sources: Global Property Guide, Short Term Rentalz, French Entree
11) Property prices in the South of France will stabilize as government actions balance the market
In recent years, the South of France has seen a series of government interventions aimed at stabilizing property prices. One of the key measures has been the investment in affordable housing projects. By increasing the supply of affordable homes, the government has been able to make housing more accessible to a broader demographic, which helps to balance the market and reduce the pressure on luxury property prices.
Additionally, property tax reforms implemented in 2023 have played a significant role. By increasing property tax rates in major cities like Paris, Bordeaux, and Marseille, the government has discouraged speculative investments. This has made the South of France less attractive for speculative buyers, contributing to a more stable property market.
Another important factor has been the introduction of regulations to limit short-term rentals. The Loi Le Meur, enacted in November 2024, has imposed quotas and rental caps to address housing shortages. By reducing the number of nights a property can be rented out short-term, these regulations help preserve long-term housing for residents, further stabilizing the market.
Sources: Esales International, Jumelages Partenariats, Hostaway
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12) More young families will move to the South of France for better living and education options
The South of France is becoming a hotspot for younger families seeking a better quality of life.
One big reason for this shift is the rise in property sales to younger buyers, showing a clear demand for family-sized homes. Families are drawn to the region not just for its scenic beauty but also for its excellent educational opportunities. Schools like the International Bilingual School of Provence and the International School Côte d'Azur offer programs that attract families from all over, creating a vibrant, multicultural community.
These schools are a major pull factor, offering international and bilingual education that appeals to parents who want a global perspective for their kids. The South of France is often highlighted in surveys and media as a top choice for young families, thanks to its mild climate and rich cultural heritage.
Local governments are also stepping up, launching projects to enhance infrastructure and educational facilities, making the area even more appealing. This proactive approach is part of why the region is seeing a demographic shift towards younger populations.
Demographic studies back this up, showing an increase in births and a relatively high fertility rate compared to other European countries. This means more young families are setting roots here, contributing to a dynamic and youthful community.
With all these factors in play, it's no wonder the South of France is becoming a magnet for families looking for a better life. The combination of lifestyle, education, and community makes it an irresistible choice.
Sources: INED, International Bilingual School of Provence, ICS Côte d'Azur
13) Property prices in Pyrenees-Orientales will fall as climate change reduces coastal appeal
The Pyrenees-Orientales area, located along the Mediterranean coast in the South of France, is facing significant challenges due to climate change, particularly rising sea levels. In the past, projections indicated that by the end of the 21st century, the average sea level could rise by one meter, increasing the risks of marine flooding and coastal erosion. This has been a growing concern for property buyers who are becoming more aware of the potential impacts of climate change on their investments.
In 2023 and 2024, the real estate market in France experienced a decline of 14.1%, influenced by rising interest rates and stricter credit conditions. However, climate change risks have also played a role in affecting property values and market stability. In the Pyrenees-Orientales department, property prices have been lower than the national average, and their growth has been slower compared to other regions. This trend suggests that if climate change impacts become more pronounced, a decline in property prices could be expected.
Additionally, the increased risk of flooding due to climate change has led to higher insurance premiums for properties in flood-prone areas. This rise in costs can deter potential buyers, further contributing to a decline in property prices. Media coverage highlighting the effects of climate change on the South of France, including rising sea levels and increased flooding risks, has also played a role in shaping buyer perceptions and demand.
Sources: Climate-X, INGV, Sur in English
14) Property prices in Occitanie will rise as it becomes a center for renewable energy projects
The Occitanie region in southern France is becoming a hotspot for renewable energy projects.
Thanks to the French government's push for green energy, especially with the Renewable Energy Acceleration law of 2023, it's now much simpler to kickstart new projects here. This law has cut through the red tape, making Occitanie a prime location for these initiatives.
As these projects take off, they're bringing in new job opportunities. This influx of professionals is driving up the demand for housing, as more people move to the area for work.
Infrastructure is also getting a boost, with better transport and digital connectivity being developed to support these energy projects. This makes the region even more attractive to businesses and residents, further fueling the property demand.
With all these changes, it's no surprise that property prices in Occitanie are expected to rise. The region is not just about beautiful landscapes anymore; it's becoming a hub for innovation and growth.
For anyone considering buying property in France, Occitanie offers a unique blend of economic opportunity and lifestyle. It's a region on the rise, thanks to its role in the renewable energy sector.
Sources: Statista, eSales International, Statista
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) Property prices in Languedoc will rise significantly as it becomes a popular wine tourism destination
The Languedoc region is becoming a wine tourism hotspot, leading to a notable increase in property prices.
With its reputation for producing a large share of France's pink wine and a significant portion of the world's rosé, Languedoc is drawing wine lovers from all over. This influx of visitors is boosting the demand for real estate as more people want to live or invest in this lively area.
Media coverage has been a game-changer, shining a spotlight on Languedoc's wine tourism appeal. This attention has not only attracted more tourists but also caught the eye of savvy investors looking for promising opportunities in the property market.
As the region's wine-related attractions continue to gain fame, the real estate market is feeling the impact. The combination of increased tourism and media buzz is making Languedoc an attractive destination for property buyers.
Locals and newcomers alike are noticing the changes. The rise in tourism is not just a seasonal trend; it's a shift that's transforming the real estate landscape in Languedoc.
For those considering a move or investment, now might be the time to explore Languedoc. The region's growing popularity as a wine tourism destination is driving property prices upward, offering potential for future gains.
Sources: Wine Enthusiast, The Buyer, Long Term Rentals in France
16) Property prices in Dordogne will fall as younger people move to cities for jobs
In recent years, the Dordogne region has seen a noticeable decline in its younger population. This trend is largely due to young adults leaving rural areas like Dordogne to pursue studies and job opportunities in urban centers. By the age of 25, a significant 80% of young people from rural areas have moved away, primarily for better educational and employment prospects.
Urban centers in France offer a wider range of job opportunities and facilities, which are highly attractive to young professionals. This has led to higher residential mobility among 18-24-year-olds, especially those moving from smaller urban units to larger urban areas. The strong aspiration for independence among young French adults further fuels this migration, as they seek better job opportunities and educational facilities in cities.
The migration of young adults from rural municipalities to urban areas has resulted in a significant reduction in the younger population in regions like Dordogne. This demographic shift has a direct impact on property demand, as fewer young people remain in rural areas to purchase homes. Consequently, the decline in property prices in rural areas like Dordogne can be attributed to this reduced demand, a trend that accelerated in 2023.
Sources: INSEE, My French House
17) Property values in Marseille will rise unexpectedly as urban regeneration projects boost its attractiveness
Marseille's property values are on the rise thanks to urban regeneration projects.
These projects are not just about aesthetics; they're about making life better for everyone in the city. For instance, Marseille is on a mission to become carbon neutral by 2030, and part of that plan includes planting over 300,000 trees. They've also set aside EUR 10 million for green projects, which is a big deal for the environment and the community.
But it's not just about going green. Marseille is also upgrading its infrastructure and public transport. This means getting around the city is becoming easier and more efficient, which is a huge plus for both residents and investors. With Marseille being a major Mediterranean port, new businesses are flocking to the city, creating jobs and making it an even more attractive place to live.
The media is catching on to Marseille's transformation, too. They're highlighting the city's rich culture and history, which is drawing attention from all over. Compared to other big French cities, Marseille's property prices are still relatively affordable, making it a hot spot for international investors.
Local and international buyers are taking notice, and this growing interest is pushing property values up. It's a win-win situation for the city and those looking to invest in a place that's on the rise.
Sources: Mayors of Europe, Redfin
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.