Rich Americans flexi-working on French Riviera fuel property boom
Demand for super-prime homes from international buyers has surged after the pandemic
AFFLUENT Americans with the flexibility to work remotely have been snapping up luxury houses on the French Riviera, sparking a surge in property prices in a region known for its stunning beaches, fancy yachts and the glamorous Cannes Film Festival.
Prices of homes valued above 15 million euros (S$21.9 million) along France’s south-eastern coast rose between 15 and 20 per cent in the five years to 2023, outperforming the 13 per cent gains in London in the same period, data from broker Beauchamp Estates showed.
The increase has been driven by a resurgence in international buyers after the pandemic, especially those from the US and Middle East seeking second homes from where they can work, according to the research.
The demand for such super-prime homes is unlikely to be dented by the political turmoil that’s swept France following the recent snap elections, said Adrien Willing-Lamy, Beauchamp’s managing director in Cannes.
International buyers are looking for homes that are long-term investments in sunny wealth hubs such as the French Riviera, Dubai and Miami, where they can live for long periods of the year, he said.
For that reason, “the recent French election won’t be part of the decision-making” process, he added. “Both pre- and post-election, demand has remained stable for the most sought-after trophy homes on the French Riviera.”
A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
The property boom on the Cote d’Azur contrasts with the slump some of the other luxury markets have seen in the recent past.
Higher borrowing costs and recession fears have hampered some high-end housing markets in the US and Europe.
Prime property prices – defined as the top 5 per cent of the market – fell more than 2 per cent in New York and London in the first quarter of 2024, compared with the same period a year ago, according to real estate consultancy Knight Frank.
But resorts along the French Riviera – including Cap Ferrat, St Tropez and Cap d’Antibes – are attracting demand from overseas hybrid workers, with more than 70,000 properties along the coastline now owned by foreign second-home buyers.
The research reveals that wealthy Americans tend to be attracted to houses in Cap Ferrat and St Tropez, while Middle Eastern purchasers are seeking “turn-key” properties close to the sea, near larger homes of elder family members.
“Rich buyers have learned to work from anywhere in the world and operate their business interests from home,” said Gary Hersham, the founding director of Beauchamp Estates. “Those looking at buying or renting on the French Riviera are increasingly looking at having second homes rather than purely summer vacation homes.”
In Cap d’Antibes – where British billionaire John Caudwell is among the big-name developers – the number of prime residential property transactions for homes valued above five million euros has doubled in the past two years, according to broker Savills.
The number of millionaires in France has risen 14 per cent over the past decade, compared with an 8 per cent drop in the UK, which is on track to lose 9,500 millionaires this year, according to the Henley Private Wealth Migration Report.
To be sure, Dubai saw the most super-prime sales in the first three months of 2024, with New York and Palm Beach ranking second and third, respectively, Knight Frank data showed. Globally, there were 1,618 deals valued at US$10 million-plus each in the 12 months to March, the lowest annual total in three years.
Some wealth advisers say it may be too early to gauge the impact of the political gridlock in the wake of the French elections and potential policy changes around taxes on the wealthy may prompt some well-heeled residents to leave.
The voting saw no party or alliance win an absolute majority in the National Assembly but did see a surge in support for President Emmanuel Macron’s opponents on the far left and right.
“Foreign investors are taking a lot more time these days to complete operations,” said Julien Magitteri, a private wealth adviser and founding partner of Barnes Family Office by Come. “We have had a climate of trust and stability. In the space of a few days, this has been wiped out, with little visibility of what’s to come.”
But brokers on the Mediterranean coast remain confident that the French Riviera will continue to see price growth, especially with 128,000 millionaires expected to relocate worldwide this year – beating the previous record of 120,000 set in 2023.
“The buyer attitude has evolved. People want homes they can use for weekends and longer stays,” said Alex Balkin, executive director at Savills’ French Riviera brokerage.
Share with us your feedback on BT's products and services
