Coasts and Costs

PROPERTY TAX INCREASE FOR SECOND HOME OWNERS

This year, owners of second homes in nearly 1,500 towns, cities, and villages across France will see their property tax bills (“Taxe d’Habitation”) rise significantly. While property tax increases have become common for property owners in recent years, second-home owners in specific areas of France should brace for a particularly sharp hike in 2024.

France has two types of property taxes. The first, the property owners’ tax (“Taxe Foncière”), is paid by everyone who owns property in France, regardless of the property’s use or whether the owner is a French resident. The second type of tax, “Taxe d’Habitation,” is now exclusively owed on secondary residences, whether renting or owning.

In some regions, second-home owners will face a substantial increase in their Taxe d’Habitation, with certain locations imposing the maximum allowable 60 percent hike.

PROPERTY PRICES DECLINING ALONG THE COASTS

Property prices in most coastal areas have begun to decline following the post-COVID surge. According to French Notaires, median house prices dropped by 2.8% in the year ending March, while apartment prices remained relatively stable. This marks a significant change from 2021 when property prices in many coastal areas soared by over 20%.

However, the market remains diverse. Some areas saw notable drops in apartment prices, such as Sables-d’Olonne (-6.7%), while others experienced substantial increases, including Boulogne-sur-Mer (+8.9%), Gruissan (+8.1%), and Saint-Raphaël (+6.9%). Only two municipalities recorded significant price declines: Biarritz (-4.6%) and Les Sables-d’Olonne (-6.7%). This variation is also evident in the housing market. Some areas saw strong price increases over the year, like La Ciotat (+7.4%), while others faced sharp declines, such as Saint-Pierre-d’Oléron (-12.9%). The median price per square meter for apartments ranges from €1,560 in Boulogne-sur-Mer (€1,300 in 2021) to €5,200 in Cabourg (€4,130 in 2021) and up to €8,830 in Le Touquet-Paris-Plage (€7,880 in 2021).

For houses, the lowest prices are found in Boulogne-sur-Mer (€143,000), with averages rising to €780,000 in Antibes (€585,000 in 2021) and €987,900 in Le Touquet-Paris-Plage (€825,000 in 2021).

The graphic below illustrates average prices for apartments and houses in selected towns, as well as the average percentage price changes over the past year.

NICE IS NICE FOR THE FRENCH, TOO

It’s one of the signs of Nice’s attractiveness: the vast majority of those looking for apartments in the city are aspiring new residents, from all over the world, and locals are not looking to move.

Nice is still in the hearts of Parisians! Of the ‘would-be renters’ in the departmental capital, 14.3% are from the Paris region. Nice stands out from the rest, as Lyon and Marseille follow, but only account for 3.7% and 2.9% of those looking to move to the Baie des Anges.

After Lille (2.9%) comes Montpellier (2.9%), Bordeaux (2.6%) and Nantes (2.6%). As Manda, a major property services group which carried out this study in May, points out, this proves that “Nice appeals to French people from all over France.” North, South, West and East are all snapping up the jewel of the South. Its proximity to the sea, its pleasant climate and the beauty of its old town center charm the French!

Rental rates are the highest in the whole of the province: 591€ for 30m² or 985€ for 50m², at 19.7€ per square meter, but people living in large cities are prepared to pay to enjoy the Nice lifestyle.

Of all those currently looking for an apartment in Nice, 56.6% do not live in Nice or the surrounding area. Forty-three-point-six percent are locals, looking for something bigger, cheaper or in a better location.

The report also notes that Marseille is a major attraction for Parisians, but this is not reciprocated. In fact, there is a low proportion of applications for housing in Paris from people from Marseille. More of them are moving to Montpellier.

A bientôt,