Côte d'azur (French Riviera) stretches from the border of France and Italy up to the Toulon. These 300 kilometers of stunning countryside, luxury villas, secure residential complexes and charming old houses are always at the peak of popularity. Members of the nobility from all over the world have chosen this region in the early 19th century.
Today Cote d'azur, which is also called the French Riviera, is the symbol of prestige, comfort and social security. About the current situation on the local real estate market we are speaking with Elena Belutti, Director of the CGF International Real Estate Agency.
"Effects" of the crisis
Real estate of Cote d'Azur is a very specific sector that is different from the French market as a whole. Wealthy foreigners are the main buyers here. Even when in the rest of France square meters were rapidly dropping in price, negative trends were little affected by this elite region.
Perhaps the only sign of the crisis was that the process of selling housing is now a little longer than before. The fall in prices was not observed. On the contrary, every year prices grow, slowly but surely.
Apartments and houses here are owned by wealthy people, so they don’t need to get rid of them urgently. When the owners are asked for discount, they often refuse and continue to wait for "their" buyer.
The geography of sales
Russian buyers over the last few years has become fewer. If previously we often had to deal with the middle class, who bought an apartment for €300,000-€800,000 as a second residence, today the people of the former Soviet Union buy either the objects of the categories "Lux" or they are looking for the opportunity to build and protect their capital from currency and economic risks.
A new trend on the market — a large number of buyers from Asia. They also choose the most prestigious objects, apartments and villas in the best areas.
On the Cote d'Azur there are many investors from the neighboring Italy. Basically, they buy apartments for €300,000-€500,000 and rent them out to tourists. The number of buyers from the UK in recent times has declined. Their favorite areas of Nice are the Port and Old Nice.
Also on the market there are investors from the countries of Northern Europe — Finland, Sweden, Denmark. As a rule, they choose apartments in the most popular places, but trim them to their taste and rent out for good money.
About short term rentals
About 2 years ago in France was issued a law, restricting rent in cities with populations of more than 200,000 people. Despite this, in this way in Nice are offered for rent more than 4,000 apartments. There are entire agencies that work for a short-term rent.
The transaction
The deal can be concluded within one month, if the buyer is able to pay the full cost of the project without the involvement of credit. Buying a home with a mortgage will take 2-3 months.
After the parties agreed on the final cost, all necessary papers are submitted to the notary, who prepares the preliminary contract. After signing this contract 10% of the amount must be paid as deposit. The final signing takes place in a month, or 2-3 months (if you have a mortage).
The entire amount transferred to the account of the notary. In France purchases are securely verified and protected — the notary is responsible for the cleanliness of the transaction. On the day of the sale the new owner gets his keys.
Thus, it is possible to choose and buy a property during one or two of arrivals.
Mortgage terms for foreigners
The banking system in France is very developed. Typically, banks agree to finance half of the purchase price of the foreigner. Under favorable circumstances can be achieved 60-70%.
Rates for foreigners are low, as well as for the French — 2 - 2,5%. In addition, in some cases, early repayment is possible.
Taxes
There are 3 main taxes for property owners:
1. Property tax — depends on square footage, location, and object type. For apartment for €500,000 it will be about €1,500.
2. The residence tax - is paid by the owner, if he lives the apartment by himself or members of his family live there. If the apartment is rented, the tax becomes the responsibility of the tenant.
3. The luxury tax is payable in case when the property was acquired without the credit and for the sum from €1,300,000. There are several ways to legally avoid paying the luxury tax. For example, to issue the accompanying bank loan.
The end of the conversation with Elena (for a detailed discussion on the cities of the côte d'azur), see the following publications.
Text – Alena Eliseeva, ee24
Photocredit Depositphotos.com