The below article is an English translation of the French article that appeared last Friday in the Nice Matin, a French Riviera Newspaper.
Here is the link to the original article if you wish to read it.
Despite a 24% plunge in real estate transactions last year in the Alpes-Maritimes, investment in real estate on the Côte d’Azur is a good choice.
1. The French Riviera is a great value
According to Frederic Pelou, president of the FNAIM French Riviera prices will continue strong in 2013 “especially across the waterfront sector, whether in Nice, Cannes, Antibes, Menton … because it always attracts foreign customers.” The Côte d’Azur is a value refuge. … A view shared by Marc Touati, an economist who believes that the Côte d’Azur “retains a strong power of attraction and it stands out that the domestic market.”
2. Interest rates are at their lowest
Interest rates are historically low in France. They are also currently stable, it is time to borrow or renegotiate credit. Some customers are able to negotiate savings of € 20,000 over the life of a French bank loan contracted a few years ago with a simple phone call to their bank or through a broker. Jean-Marie Ebel, president of the French Real Estate Observatory believes that “..competition may force banks to ease conditions for access to bank credit. “Prospective buyers can expect to borrow at 3.07% over 15 years, 3.4% over 20 years, 3.75% over 25 years and 4.27% over 30 years.
3. You can still do good business
Frédéric Pelou, President of FNAIM, says it is simple: “The wise thing is to anticipate major projects. We must invest more in sectors that will experience positive changes like the neighborhood Republic in Cannes. For example, those who bought five years ago on the Piazza Garibaldi in Nice, since beautifully restored, do not regret their investment! Those who have invested or are planning to do in the vicinity of the green corridor of Nice etc are making a wise choice. “According to Mr Pelou, one can expect a small drop of around 5% for all real estate except near the sea.” But it will be limited, and we should not expect exceptional cases with prices sold off. ‘
4. Sober Pricing
According to Jean-Marie Ebel, president of the Real Estate Observatory “many apartment owners overvalue their property … awareness operates. You sell quickly when you sell at the right price.”
5. Real Estate remains a standard placement
“When we see what happened in Cyprus, said Frederic Pelou, measure how real estate remains a safe haven par excellence. “A point of view shared by the report of the Economic Analysis Council (CAE). The real estate market has also been parallel to that of gold. From 1996 to 2012, house prices rose by an average of 6% per year in France, far more than consumer prices (1.7%) and rents (2.5%).
Date of posting March 2013.
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