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
What is happening in the South of France’s real estate market? Are prices soaring or stabilizing? Is the Côte d'Azur still a magnet for international buyers? How are local regulations and taxes shaping the property landscape in 2025?
These are the questions we hear every day from industry experts, potential buyers, and sellers, from Nice to Marseille and beyond. Maybe you’re curious about these trends too.
We know this because we maintain close connections with local professionals and individuals like you, exploring the South of France's real estate market daily. That’s why we crafted this article: to deliver clear insights, thoughtful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) New inheritance tax laws will affect family property ownership transfers
Changes in inheritance tax laws can significantly impact how property ownership is transferred within families. In the past, specifically before 2020, inheritance tax laws in France were less favorable for non-residents, which often resulted in a higher tax burden on property transfers. This could deter family members from transferring properties due to the financial strain involved.
However, after 2020, the French government increased the tax-free allowance for non-residents from €1,594 to €100,000. This change reduced the tax burden on property transfers, making it more financially attractive for families to transfer properties. For instance, in 2023, the average inheritance tax burden on property transfers in the South of France decreased, allowing families to transfer properties with a lower tax liability, sometimes around €5,000 to €8,000, depending on specific rates and allowances.
Surveys conducted in 2024 among property owners in the South of France showed that these changes made it more appealing for families to transfer properties. Many respondents indicated they were more likely to transfer their properties now that the tax burden was lower. Additionally, a case study of a family in the South of France who inherited a property valued at €200,000 demonstrated how the increased tax-free allowance significantly reduced their tax liability, illustrating the positive impact of these changes on family-owned properties.
Sources: CJ Finance, Wise, Chambers, Expatica
2) Traditional stone houses will become less popular as buyers prefer modern, energy-efficient homes
Traditional stone houses are losing their charm as buyers lean towards modern, energy-efficient homes.
With energy costs on the rise, people are looking for homes that help cut down on bills. Modern homes offer better insulation and energy-saving features, making them more appealing to those conscious of their energy consumption.
Government incentives like "MaPrimeRénov" and tax credits such as the "Bonification Sortie de passoire thermique" are encouraging this shift. These programs make it financially easier to invest in energy-efficient homes, which often come with these features already in place.
New regulations, like RE2020 and the Climate and Resilience Law, demand high energy efficiency standards. Traditional stone houses often fall short of these standards, leading to higher costs and less interest from buyers.
Surveys show a growing demand for modern amenities and sustainability. Features like double glazing and smart home technologies are in demand, typically found in modern homes rather than traditional ones.
Advancements in sustainable building materials, like low-carbon glass and recycled materials, make modern homes even more attractive. Media coverage highlights the long-term savings and environmental benefits, boosting their appeal further.
Real estate reports show that modern, energy-efficient homes are in higher demand and fetch better prices. Architectural trends favor contemporary designs with energy-efficient features, reducing the appeal of traditional stone houses.
Sources: IEA, French Property, BCG
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) Interest in smaller, energy-efficient homes will grow due to the trend towards minimalist and sustainable living
Minimalist and sustainable living is gaining popularity, especially in places like the South of France.
People are increasingly eco-conscious, and this shift is evident in a 2024 survey by the National Association of REALTORS, where almost half of the respondents highlighted their clients' interest in sustainability. This trend is not just a passing phase; it's a lifestyle choice that's here to stay.
In France, the market for eco-friendly building materials is thriving, with projections to surpass USD 20 billion by 2029. This boom is driven by the use of renewable resources like sustainably sourced wood and recycled materials, perfectly aligning with the minimalist ethos.
The French government is also on board, pushing for sustainable construction. Since 2022, laws mandate that public buildings use at least 50% sustainable materials. Plus, there are plans for 90 new "Eco-Quarters" that focus on sustainable urban living, paving the way for smaller, energy-efficient homes.
Architectural firms in France are embracing this trend by crafting minimalist designs that prioritize eco-friendly materials and energy-efficient technologies. This approach not only caters to the demand for sustainable living but also makes smaller homes more attractive.
These developments are reshaping the housing market, making it clear that the preference for minimalist and sustainable living will drive interest in smaller, energy-efficient homes.
Sources: NAR, Bona Fide Research, Kōzōwood
4) Rental yields in the South of France will rise as tourism rebounds and short-term rentals recover
The rental yields in the South of France are set to improve as tourism rebounds and short-term rental markets recover. This is largely due to the increased tourist arrivals post-pandemic, with a notable 7% rise in business creation in the tourism sector in 2023 compared to previous years. This uptick in tourism activity is a strong indicator of growing demand for rental properties.
Additionally, the rising occupancy rates in key areas like Nice and Marseille, where short-term rental properties have occupancy rates of 79% and 65% respectively, highlight the region's popularity among travelers. This increased demand for accommodation is likely to drive up rental yields as property owners can charge higher rates due to the high occupancy.
Moreover, the growth in international travel to France, spurred by events like the 2024 Olympics, has already shown a significant economic impact, with billions projected from tourism. This influx of visitors, particularly during major events, boosts the short-term rental market, further enhancing rental yields.
Sources: Hospitality Net, Airbtics
5) Luxury property prices in the Côte d'Azur will keep rising due to limited supply and strong demand
Luxury property prices in the Côte d'Azur are expected to continue rising due to a combination of limited supply and high demand. The region has consistently seen an increase in prime property sales, even during challenging global economic conditions. This resilience in pricing, with a notable rebound of 12.7% in 2021, indicates a strong market foundation.
The Côte d'Azur remains a top destination for high-net-worth individuals (HNWIs) from around the world. The ease of access through Nice Airport, with direct flights from major global hubs, supports this trend. Buyers from Europe, the Middle East, and Monaco contribute to a truly international demand for luxury properties.
Adding to the demand is the limited availability of new land for development, particularly in coastal areas. This scarcity of land ensures that the supply of new properties remains tight, driving up prices. Ultra-prime properties, which rarely come to market, further contribute to the high average property values.
Despite economic fluctuations, the high-end market in the Côte d'Azur has shown remarkable resilience. Real estate agencies report a buoyant market, with a strong preference for properties offering Mediterranean views and timeless elegance. The low inventory levels of luxury properties, combined with government restrictions on new construction, maintain a delicate balance between supply and demand.
Sources: Côte d'Azur Sotheby's International Realty, Savills Research, Michael Zingraf Real Estate
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6) Virtual reality tours will become widespread, enabling international buyers to view properties remotely
Virtual reality tours have become increasingly popular in the real estate market, especially for international buyers. In the past, more than 50% of adults had already taken a virtual tour, and 67% of home buyers expressed a desire for virtual tours when looking at listings. This trend has only grown, with 50% of buyers preferring virtual tours over traditional photography alone.
Real estate listings that include virtual tours receive 87% more views, and potential buyers spend significantly more time on these websites. In fact, 54% of buyers would not even consider viewing a house if it didn't offer a virtual tour. This enhanced viewing experience is crucial for international buyers who cannot easily visit properties in person.
Moreover, homes sold with virtual tours have been shown to sell for 9% more on average and close 31% quicker than those without. This efficiency and effectiveness make virtual tours an attractive option for both buyers and sellers, especially in international markets like the South of France, where the share of non-resident foreign buyers has been rising.
Sources: Long Term Rentals in France, Connexion France, PhotoUp
7) University towns will see increased demand for rentals due to more international students
France is seeing a surge in international students, with 430,466 enrolled in the 2023/24 academic year.
This increase is driving up demand for student housing, especially in university towns like Paris, Lyon, and Bordeaux. These cities alone account for nearly 30% of all student housing requests in the country.
With public student housing in short supply, 75% of students are turning to private rentals. This shift is pushing rents higher, with Paris seeing a 5% increase and Lyon experiencing a 3% rise.
In Paris, monthly rents for student accommodations are now between €800 and €900, reflecting the competitive market. This trend is particularly noticeable in areas close to major universities.
For those considering property investment, university towns are becoming hotspots due to this growing demand. The influx of students is not just a temporary trend but a consistent pattern, making these areas attractive for rental property investments.
Investors should note that the rental market in these cities is becoming increasingly competitive, with students actively seeking accommodations close to their campuses.
Sources: The PIE News, Upgrad GSP, Studapart
8) Middle Eastern buyers will increasingly seek safe and stable investment opportunities in Europe
The demand from Middle Eastern buyers for European investments, particularly in real estate, has been on the rise. This trend is largely due to the Middle East's ongoing efforts to diversify its investment sources beyond oil, which has led to increased interest in stable European markets. In the past, specifically in 2023 and 2024, this diversification strategy was a key driver for Middle Eastern investors seeking secure and profitable opportunities abroad.
One of the most attractive regions for these investors has been the South of France. The area, especially the Languedoc region, offers a unique double rental market. This means investors can benefit from both long-term monthly rentals and high weekly holiday rentals, which provide gross rental yields of around 6 to 9% per year. Such favorable returns have made the South of France a hotspot for Middle Eastern buyers looking for stable and lucrative investments.
Moreover, real estate agencies in the South of France have reported a noticeable increase in interest from Middle Eastern clients. This interest is not only driven by the attractive rental yields but also by the overall stability of the French property market. The economic and political instability in the Middle East has further fueled this trend, as investors seek to safeguard their wealth by investing in regions with strong economic fundamentals.
Sources: Long Term Rentals in France, Invesco
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) Tighter short-term rental rules will impact investment property profits in tourist areas
Stricter regulations on short-term rentals, like those introduced in France in 2025, can significantly impact the profitability of investment properties in tourist areas. These regulations require property owners to register their rentals and provide proof of primary residence, which adds extra steps and costs to the process.
In Paris, for example, non-compliance with these rules can lead to hefty fines, up to €50,000 per property, and daily penalties. This financial risk can deter property owners from entering or continuing in the short-term rental market, reducing the number of available listings.
Moreover, the new laws allow municipalities to set quotas on tourist rentals, which can further limit the number of properties available for short-term rental. This restriction can lead to decreased occupancy rates, as properties may not be rented out as frequently, directly affecting rental income.
Additionally, the shift from short-term to long-term rentals, driven by these regulations, can impact property values and rental income potential. As property owners adjust to these changes, they may find it challenging to maintain the same level of profitability as before.
Sources: Stricter tourist rental laws to come into force in France in 2025, Guide to Legally Renting Your Property in France, Parliament passes bill to adopt stricter rental regulations in France, Airbnb Rules in France | Laws, Regulations and Taxes
10) New tax incentives for eco-friendly homes will boost sustainable property development
In recent years, the French government has taken significant steps to promote eco-friendly homes through new tax incentives. These incentives include tax credits ranging from 20 to 60% for investments in green energy projects like solar panels and heat pumps. This initiative, which began in 2023, is designed to encourage more people to invest in sustainable property development.
The market for green building materials in France is also on the rise, with expectations to reach over USD 20 billion by 2029. This growth is driven by a national commitment to sustainable development and environmentally friendly building standards. As more people become interested in sustainable living, the demand for eco-friendly homes continues to increase.
Additionally, the media has been actively promoting the benefits of sustainable architecture, which has helped raise public awareness and interest in eco-friendly homes. Government campaigns and initiatives, such as the requirement for new commercial buildings to have green roofs, further support the development of sustainable properties.
Sources: Bona Fide Research, Billion Bricks, UNCTAD Investment Policy Monitor
11) UK buyers will increase their presence in the South of France as Brexit uncertainties settle
UK buyers are increasingly interested in purchasing property in the South of France.
With Brexit uncertainties easing, French real estate agencies like La Résidence have noticed a surge in interest from British clients. The French government has made it easier for UK buyers by allowing non-visa stays of up to six months and reducing taxes on rental income, making the market more appealing.
These legal changes have created a more stable environment, encouraging British buyers to return. The number of UK buyers had previously dropped, but now, with favorable conditions, the trend is reversing.
Exchange rates between the British pound and the euro have also played a role, making property purchases more attractive. While specific figures aren't available, this economic factor is crucial in influencing buying decisions. Real estate agents, such as those at Maison Sloane, have observed this renewed interest firsthand.
British buyers are drawn to the South of France not just for its beauty but also for the financial benefits now available. The region offers a unique blend of lifestyle and investment opportunities, making it a top choice for those looking to buy abroad.
As Brexit-related issues settle, the South of France is becoming a hotspot for UK buyers, with increased activity expected in the coming years.
Sources: La Résidence, Long Term Rentals in France, French Entree, Maison Sloane
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12) Coastal erosion concerns will affect the appeal of properties in some beachfront areas
Coastal erosion is a growing concern for beachfront properties, especially in areas like the South of France. In regions such as Gironde and Charente-Maritime, the coastline has been retreating significantly, with some areas losing over 4 meters per year in the past decades. This trend is expected to continue, with projections indicating a potential retreat of up to 70 meters by 2050 due to climate change.
As a result of these changes, insurance premiums for beachfront properties have been rising. In cities like Nice, homeowners are already experiencing increased costs due to the heightened risk of natural disasters like flooding and landslides. This financial burden is likely to deter potential buyers, making properties in these areas less desirable.
Moreover, the impact of coastal erosion on property values is evident in cases like the Le Signal apartment block in Soulac-sur-Mer, which was demolished in 2023 after being evacuated years earlier. This serves as a stark reminder of the risks associated with owning property in erosion-prone areas, further influencing buyer hesitancy.
Sources: Euronews, Connexion France, France24
13) Asian investors will explore opportunities in the South of France for its cultural heritage and tourism potential
Asian investors are increasingly drawn to the South of France due to its rich cultural heritage and tourism potential. The growing number of Asian tourists visiting the region is a significant factor, with a notable 250% increase in travel from China and Japan compared to 2023 figures. This surge in tourism highlights the South of France as an attractive destination for Asian travelers, who are staying longer and exploring more of what the region has to offer.
Additionally, there is a broader trend of increasing investments by Asian companies in European real estate, with Chinese companies particularly interested in the French market. This interest is driven by France's strategic location within the EU and its skilled workforce, making it a prime target for investment. The South of France, with its picturesque landscapes and historical sites, presents a unique opportunity for investors looking to capitalize on the tourism boom.
Moreover, cultural exchange programs between Asian countries and France have been successful in fostering closer ties and mutual interest. Events like the China-France Year of Culture and Tourism have accelerated people-to-people exchanges, further enhancing the appeal of the South of France as a cultural and investment hub. The expansion of direct flights between major Asian cities and France, with high occupancy rates, also facilitates easier access for tourists and investors alike.
Sources: Schengen News, Eurostart Entreprises, China Briefing
14) Rental yields in urban areas like Nice and Montpellier will drop as property prices rise faster than rent growth
In recent years, urban areas like Nice and Montpellier have experienced a noticeable shift in their property markets. Property prices in these cities have been on the rise, with Nice seeing average prices per square meter reaching as high as 5,118 euros, and even higher in the city center. Montpellier, while slightly less expensive, has also seen stable property prices, despite a minor decrease in June.
At the same time, the rental market in these cities has not kept pace with the rising property prices. In Nice, for example, the volume of available rental properties has significantly decreased, dropping by over 63% in just three years. This scarcity is partly due to the increase in seasonal and student rentals, which has limited the supply of long-term rental options.
Moreover, the demand for property in these urban areas has been driven by both local residents and investors, who are more focused on capital gains rather than rental income. This trend is particularly evident in the South of France, where investors prefer to buy properties for resale, further pushing property prices up.
Sources: Adrian Leeds, Santa Fe Relocation, Global Property Guide
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) Second home demand will moderately raise property prices in popular vacation spots
The demand for second homes in popular vacation areas is expected to cause a moderate increase in property prices. In 2022 and 2023, there was a noticeable rise in the share of non-resident foreign buyers in regions like Provence-Alpes-Côte d'Azur, indicating a growing interest in second home ownership by foreigners. This trend suggests that more people are looking to invest in vacation properties, which can drive up demand and prices.
Despite a general slowdown in the French property market, areas like the French Riviera and Provence are expected to maintain premium prices due to high demand. This is supported by historical data showing consistent property transactions in France, with a rolling average of over 1 million sales in many recent quarters. Such sustained interest in buying properties, including second homes, contributes to the upward pressure on prices.
Additionally, the booming short-term rental market in vacation hotspots like the French Riviera further fuels demand for second homes. Many properties in these areas are used as short-term rentals, attracting both domestic and international buyers interested in investment opportunities. This trend is particularly pronounced in tourist hotspots, where the appeal of owning a vacation home is strong.
Sources: Esales International, Notaires de France, Euronews
16) Rental demand in university towns will rise, enhancing yields in those areas
In recent years, the demand for rental properties in university towns has been on the rise, particularly in the South of France. This trend is largely driven by the increasing number of students enrolling in universities. For instance, the population of Rennes, a major university town, has grown significantly, with over 63,000 students contributing to this increase.
Additionally, international student admissions have surged, with France welcoming over 430,466 international students in the 2023/24 academic year. This influx of students from abroad has further fueled the demand for rental properties, as these students seek accommodation during their studies.
Moreover, the student housing market in France is experiencing unprecedented tension, with demand far outstripping supply in major cities. This has led to fierce competition for available housing, driving up rental prices and making off-campus housing a preferred option for many students.
Sources: Businesscoot, ICEF Monitor, Long Term Rentals in France
17) Rural properties will yield higher returns as demand for long-term rentals outside city centers grows
Remote work is changing where people want to live, with many now eyeing the countryside for a better lifestyle.
In the South of France, areas like Provence-Alpes-Côte d'Azur are becoming popular as folks escape the hustle and bustle of city life. Rental prices in cities such as Toulouse, Montpellier, and Nice are climbing, pushing people to explore more affordable rural options.
These rural spots offer larger homes and more land, which is a big draw for those craving space. Infrastructure improvements, like high-speed rail, are making these areas more accessible, adding to their appeal.
Government efforts to boost sustainable tourism and development are also playing a role, ensuring these regions are not just attractive but also promising for future property value. Successful long-term rentals in rural areas are showing higher yields, especially for remote workers and families seeking tranquility.
Media stories often highlight the perks of rural living, like a better quality of life and easy access to nature. This growing interest is driving more people to consider rural properties as a viable option.
With more people looking for long-term rentals outside city centers, rural properties are set to offer higher yields. The trend is clear: the countryside is calling, and many are answering.
Sources: ASEAN UP, Ibercenter, Long Term Rentals in France
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.