“Paris, I love you but I’m leaving you.”
Volume XIX, Issue 27
Of course, not all city dwellers dream of escaping from large urban centers! And if the French have discovered their desire for space and greenery, it is not yet time for an urban exodus. However, a little music has been playing for the past few months: “Paris, I love you but I’m leaving you.” The fact is that the Paris region seems to be losing its appeal. (At least for now.)
According to Seloger.com, if there is one region whose attractiveness has clearly benefited from the health crisis and the reshuffling of the cards it is the Provence-Alpes-Côte d’Azur region (PACA). While overall the number of demands for properties located in the Paris region is down (-6 percent) between September and December 2020 and between January and April 2021, the volume of demands increased by 58 percent in the PACA region, 18 percent in Corsica, 15 percent in Brittany and 11 percent in the Pays de la Loire region.
However, the PACA region has the strongest appeal to the people of Ile-de-France! If we focus on the demands from the Ile-de-France, the Provence-Alpes-Côte d’Azur region alone records an increase of 64 percent. In Corsica, the Grand Est, Brittany and the Centre-Val de Loire region, the increases are 33 percent, 19 percent, 16 percent and 13 percent respectively.
Why am I not surprised? If what you want is more outdoor life, a milder climate and more sun, then PACA is it. And we’re watching it happen before our very eyes as properties on sale in the region are selling within hours of being placed on the market while prices are rising—but not nearly as much as in Paris, in spite of the exodus.
In Paris the price of real estate is stratospheric! The price per square meter in Paris has increased by 5.3 percent over one year to reach €11,194! In 16 of the 20 Parisian districts, prices now exceed €10,000 per square meter (more than €11,000 per square meter in 11 districts), with prices of more than €14,000 per square meter in two districts (6th and 7th). While Paris ranks first among the major cities where it costs the most to become a homeowner, it is in Saint-Étienne (a city in east-central France) where the price per square meter is as low as 1,500€. It should be noted, however, that some medium-sized cities are experiencing truly meteoric increases in real estate prices: more than 19 percent in Evreux, Poitiers, Saint Quentin or Tourcoing, or at least +18 percent in Albi, Laval and Valence.
* Special Note: when you compare these reported prices to properties on the market you may be in for a surprise. The market prices will normally be much higher than what the statisticians report. That’s because the average prices reported are based on past sales, which took months to complete and to analyze, don’t include the agency commissions of about five percent, don’t take into account furnishings/appliances which may have reduced the price on the deed and a variety of other factors that generally lower the average prices.
Nice is half the price of Paris. The real estate market in Nice differs from one neighborhood to another and often even from one street to another, just as it does in Paris. Depending on the location of the property, the price can vary from 3,000€ to over 10,000€ per square meter (/m2). On average for the entire city, it’s about 4,500/m2. Each area has its own assets and different types of buyers.
Some sectors however are particularly overwhelmed with buyers. The Vieux Port in particular is experiencing a revival of interest in recent years with the opening of numerous restaurants and shops, and the arrival of line 2 of the East-West tramway. Expect to pay around 5,600€/m2 to buy a home there and more than 6,000€/m2 if it has a sea view. More affordable, with an average of 4,600€/m2, but just as coveted, the Libération area seduces the young Niçois with its Gare du Sud transformed into a Gourmet Hall, its cinema, its daily market and its dimension as a “village within the city.”
Other neighborhoods are also on the rise. Since the health crisis, Nice-Ouest and especially the residential area of Fabron is attracting more and more buyers with its luxury buildings, unobstructed views, terraces, greenery and calm, not to mention its attractive prices—more affordable than those in the Cimiez and Mont Boron neighborhoods. This last sector is still very popular with a wealthy foreign clientele. If the housing is sold at around 7,000€/m2, it can easily exceed 10,000€ and more for the most beautiful properties.
In the chic district of Cimiez, the prestigious buildings dating from the Belle Epoque, the proximity to the city center and the many green spaces are major assets. The average price in this area is 5,100€/m2. The Carré d’Or, which stretches from Place Masséna to the Quartier des Musiciens, is a safe bet and attracts an elite clientele ready to pay 7,000€/m2. Right next door, the more affordable Quartier des Musiciens has an average price of 5,100€/m2. Nice Centre and Old Nice continue to average around 5,700€/m2. The closer you get to Masséna and the Coulée Verte or the sea, the higher the price, exceeding 6,000€/m2.
Other less central areas allow you to acquire a property at a lower budget. This is the case of Nice-Nord and the area near the old Ray stadium. Transformed into an eco-district and quickly accessible by tramway, this area offers housing at around 4,000€/m2. The authentic Riquier district has benefited from a number of urban programs in recent years, increasing its attractiveness and which should continue more development in the future. For the time being, one can buy a property there around 4,200€/m2. Among the neighborhoods with advantageous prices, we should also mention those of Cessole, Saint-Sylvestre and Saint-Roch around 3,700€/m2 or even Grosso, around 3,400€/m2. A last district in full expansion remains to be watched: that of l’Arenas. With the creation of the Eco-Valley, new housing can be purchased there at 3,200€/m2, which could well take on a significant value in the years to come.
The bottom line is that Nice is moving up and moving out. If you want to be a part of that, we can help you. Be sure to consider attending our upcoming Living and Investing in France Conference September 27 to 29, 2021: Get to know Nice and the French Riviera! Click here to learn more.
The Adrian Leeds Group®
P.S. If you are considering a property purchase in Nice, don’t do it lightly. Let us help you make the smartest decisions to ensure you make the best investment you can. We can also expertly advise you how best to create a profitable rental. Contact us to learn more.