20% rise in millionaire home values on French Riviera driven by American buyers

Prime residential property values along the French Riviera rose on average by 15% to 20% between 2019 and 2023 the market driven by the return of international buyers including in the ultra-prime sector buyers from the USA, India, the Nordic countries and Middle East: these are the findings of a new French Riviera Residential Market Survey (June 2024) by Beauchamp Estates (France).

The new Beauchamp Estates (France) survey has reviewed the ultra-prime residential property market on the French Riviera analysing the market between St Tropez and St-Jean-Cap-Ferrat including the resorts of Cannes, Mougins, Cap d’Antibes, Cap-d’Ail and Beaulieu-sur-Mer.

The survey found that ultra-prime properties along the French Riviera are valued from €15 million (£12.85 million) up to €500 million (£430 million) with a large oceanfront villa now commanding an average value of £20.4 million (€24 million), higher than an equivalent villa in London’s St John’s Wood (£15.4 million) or a townhouse in Mayfair (£18.8 million).

Beauchamp Estates (France) say that for homes valued above €15 million (£12.85 million) along the French Riviera, prices have risen on average by 15% to 20% between 2019 and 2023, which exceeds the performance of similar luxury homes in London where equivalent values rose by 13%. The top six French Riviera locations that command the most valuable luxury homes in rank order are Cap Ferrat, St Tropez, Cap d’Antibes, Cap-d’Ail, Beaulieu-sur-Mer and Roquebrune-Cap-Martin.

Beauchamp Estates (France) do not think the recent French Election will have a negative impact on super prime home sales on the French Riviera, especially with international purchasers. Both pre and post the French Election demand has remained stable for the most sought after trophy homes on the French Riviera. The French Election was unexpected but the result has avoided either an extreme left-wing or right-wing government, instead the results are politically balanced and representative which is positive.

Beauchamp Estates (France) say that the buying decisions of international purchasers on the French Riviera has been most influenced by the Covid-19 pandemic which was a “game-changer” for the global super-rich, educating them that they can work anywhere in the world and that a good lifestyle in a sunny warm climate has health benefits.

Beauchamp Estates (France) highlight that sunny wealth hubs such as the French Riviera, Dubai and Miami are increasingly places where the global super rich choose to live. As a result most super prime buyers on the French Riviera are looking for homes that are both a long-term investment and where they can live for long periods of the year, rather than just short stay holiday homes. So for international buyers the recent French Election will not be part of the descision making, instead it is about transformed lifestyle choices.

Beauchamp Estates (France) say that Cap Ferrat has firmly established itself as the French Riviera’s leading ultra-prime market, a micro-market within the South of France, where the very best homes command values of between €20 million up to €500m. For homes in Cap Ferrat priced over €20 million a significant proportion of the villas and grand houses are listed for sale on an off-market basis.

Beauchamp Estates (France) say that over the last 12 months the highest levels of demand for international buyers has been for homes priced over €10 million in the ultra-prime resorts of Cap-Ferrat, Cap-d’Ail,Cap d’Antibes and Beaulieu-sur-Mer.

Beauchamp Estates (France) highlight that for homes along the French Riviera priced over €10 million around 70% of the buyers are international with the most significant groups by country of origin, especially for homes valued at over €20 million, being wealthy purchasers from the USA, India, the Nordic countries (Norway, Sweden and Denmark) and Middle East, in particular purchasers from the United Arab Emirates, Saudi Arabia and Qatar.

The survey reveals that the buyers from the Middle East are typically younger (in their late 20s to early 40s) and represent the “next generation” of the Gulf elite who are seeking properties, ideally dressed “turn-key” homes close to the sea, near the larger homes of their elder family members, many of whom have owned property along the French Riviera dating back to the oil-price boom of the 1970s.

Beauchamp Estates (France) say that American buyers tend to be most attracted to the most famous resorts along the French Riviera and have typically chosen to purchase in St Tropez and Cap Ferrat. Other key overseas buyer groups for prime property along the French Riviera are from the UK, Switzerland and the Benelux countries.

At all price points there are now over 70,000 homes along the French Riviera that are owned by overseas second-home buyers. According to Beauchamp Estates (France) international buyers seek luxury homes that ideally give them easy access to shopping, restaurants, nightlight and beaches. The majority of the purchases (around 60%) tend to be villas or grand houses, with the balance being large apartments offering at least two or three bedrooms, with extensive terraces and ideally sea views.

The most sought-after luxury villas and grand houses on the French Riviera will typically offer a miniumum of five ensuite bedrooms, a garden, garaging, a swimming pool and ideally sea or water views. Other popular features include home cinemas, spas, wine cellars and staff quarters.

Two of the most prestigious and exclusive luxury residential projects on the French Riviera are the schemes known as Le Provençal and Domaine de la Belle Étoile by ultra-prime developer Caudwell which are located in Antibes.

Le Provençal situated at the gateway to Cap d’Antibes is the transformation of an iconic 1920s Art Deco hotel overlooking the Mediterranean, originally known as Hôtel Provençal, into a new luxury address providing 39 residences including lateral apartments, penthouses and villas. The scheme is complete with Art Deco styled public areas and cinema, health spa with gymnasium, spa pool, Hamman, sauna, yoga room and fitness studio, a restaurant, retail boutiques, garaging and landscaped gardens that include a 30-metre swimming pool.

The 10-storey high Hôtel Provençal was originally built in 1926-27 by architect Lucien Stable for American millionaire Frank Jay Gould. Caudwell is transforming the 256,000 sq.ft. (23,800 sqm) main building and landscaped gardens into a new £300 million plus (GDV) luxury address with residences up to 9,440 sq.ft. (877 sqm) in size, providing one to nine bedroom suites, all offering outside terraces and views of the sea. Apartments at Le Provençal are priced from €3.5 million Euros ($3.8m US Dollars) up to €8 million ($8.7m), with marquee residences priced from €15 million ($16.5m).

Domaine de la Belle Étoile is the largest and only newly built residential estate on the exclusive Cap d’Antibes; the reimagining of the historic Hôtel Provençal tennis club into a striking modern villa with leisure amenities including a glass-walled 23m (75ft) swimming pool, up to three guest houses, set in 3.65-acres of landscaped gardens overlooking the Port de l’Olivette.

Domaine de la Belle Étoile provides in excess of 16,040 sq.ft. (1,490 sq.m.) of luxurious living accommodation over the main villa and guest cottages, offering privacy and sweeping views of the bay. The contemporary main villa ‘La Belle Étoile’, designed by Nice-based architectural practice Atelier Baraness + Cawker with interiors by Monaco-based design studio Casamanara, spans 14,200 sq.ft. (1,320 sq.m.) over ground and garden floors and is built in local French stone. Domaine de la Belle Étoile is available for viewings with price on application.

Lars Christiaanse, Group Director of Sales at Caudwell says: “Because of the fame of the former Hótel Provençal the Caudwell project to transform the hotel into Le Provençal is already extremely well known. Because of this we have already forward sold off plan almost 25% of the apartments to buyers from countries including France, the UK, Northern Europe, Germany, the USA and Asia. We believe that the marquee residences and penthouses will also attract buyers from the Middle East, alongside American buyers wanting the very best trophy homes on the French Riviera.”

Beauchamp Estates (France) highlight that during the COVID-19 pandemic international clients and buyers were unable to travel and stock levels were extremely low. Post-Pandemic stock levels have begun to gradually recover with the rentals business picking up first and in the last 12 months purchase activity has begun steadily to return.

The other impact of COVID-19 has been a change in the traditional seasonality of the French Riviera property market. The pandemic forced clients to adapt and learn to work remotely from anywhere in the world and operate their business interests from home or the office.

As a result of this transformation clients looking at buying or renting luxury homes on the French Riviera are increasingly looking at having second homes rather than purely summer vacation homes, where they can work remotely, whilst enjoying a change of scene and sunshine lifestyle. This has led locations including Cannes, Mougins and Cap d’Antibes to increasingly become year-around resorts, with festivals and evenings acting as a strong draw outside of the summer months.

Beauchamp Estates (France) observe that post-pandemic clients in the South of France, both owners and buyers/renters, want a faster more local service – where the agent can be available within the hour to show a property. This is one of the reasons why the company opened two local offices in Mougins and St-Jean-Cap-Ferrat at the end of 2023, the new branches also capitalising on the Post-Pandemic return of international buyers to the French Riviera. The new offices complement the existing Beauchamp Estates offices on the French Riviera which are located in Cannes and St Tropez, opened in 2007 and 2020 respectively.

Adrien Willing-Lamy, Managing Director of Beauchamp Estates (France) says: “I do not think the French Election will have a negative impact on super prime home sales on the French Riviera, especially with international purchasers. Both pre and post the Election demand has remained stable for the most sought after trophy homes on the French Riviera. The French Election was unexpected but the result has avoided either an extreme left-wing or right-wing government, instead the results are politically balanced and representative which is positive.”

Adrien Willing-Lamy, Managing Director of Beauchamp Estates (France) says: “The Covid-19 pandemic was a game-changer for the global super-rich, educating them that they can work anywhere in the world and that a good lifestyle in a sunny warm climate has health benefits. Sunny wealth hubs such as the French Riviera, Dubai and Miami are increasingly places where the global super rich choose to live. As a result most super prime buyers on the French Riviera are looking for homes that are both a long-term investment and where they can live for long periods of the year, rather than just short stay holiday homes. So the recent French Election wont be part of the descision making, instead for them it is about transformed lifestyle choices. Since the end of the COVID-19 pandemic we have seen a surge in pent-up-demand and ultra-prime property values along the French Riviera have risen by 15% to 20%. Over the last 12 months we have seen the return of international buyers especially wealthy purchasers from the USA, India, the Nordic countries and Middle East.”

Paul Finch, Director at Beauchamp Estates observes: “Given the faltering Presidential campaign of Joe Biden and the failed assassination attempt on Donald Trump, which has stunned America but will energise Trump’s MAGA base, it now seems a certainty that Trump will win the Presidential Election and become the next leader of the United States. Last time Trump was in power we saw a significant 20% upturn in wealthy Democrats buying £15 million plus homes in London and the South of France to live out the Trump administration and we are likely to see a repeat of this American buyer influx into London and the French Riviera when Trump comes to power.”

Gary Hersham, Founding Director of Beauchamp Estates says: “One of the results of the COVID-19 pandemic is that clients learnt to work from anywhere in the world and operate their business interests from home or the office. As a result of this transformation our clients looking at buying or renting luxury homes on the French Riviera are increasingly looking at having second homes rather than purely summer vacation homes, where they can work remotely, whilst enjoying a change of scene and sunshine lifestyle.”

The four Beauchamp Estates offices in the South of France are part of the Beauchamp Estates international network. This includes offices in London, (Mayfair and St John’s Wood), Greece (Mykonos), Israel (Tel Aviv) and an associate office in Manhattan (USA). For further information on Beauchamp Estates (France) Tel: +33 (0)4 9292 23 69 or visit: www.beauchamp.com