Despite headlines shouting about falling prices everywhere, take those with a grain of Tsalt. Here in Grimaud, prices are still on the rise, much to the delight of rental investors.
The current real estate situation in France
According to a recent report published by Meilleurs Agents, the real estate market in France has experienced a significant contraction in 2023. Access to credit has become more complicated due to an increase in interest rates, leading to a forecast of fewer than a million transactions for existing homes this year, a 20% decrease compared to 2022. This contraction has resulted in a national decrease in real estate prices by 0.4% over 12 months, a situation unseen in seven years. In the ten largest cities, prices have decreased by 1.1% over the year, with more pronounced drops in certain municipalities. Paris has particularly suffered, experiencing a historic price drop of 4.5% over the year, reaching a total decrease of 7.6% since 2020. Other major cities such as Bordeaux (-8.6%) and Lyon (-8.1%) have also recorded significant declines. The drop in the number of transactions and the deterioration of financing conditions are cited as the main causes of this decline in the real estate market in 2023.
Focus on Grimaud and its Surroundings
However, if we zoom in on the local level, the situation is quite different. The two nearest major cities, Nice and Marseille, have seen their prices soar by 7.9% and 2.2%, respectively, over the same period.
The surge in real estate prices is even more spectacular in Grimaud, as the price per square meter for apartments has increased by an average of 20% over the last 12 months and by 17% on average for houses.
Explanation of the Real Estate Situation in Port Grimaud
How can we explain such a thriving real estate market in Port Grimaud?
To begin with, it’s worth noting that the majority of coastal resort towns in France have experienced an upward trend over the past year in an otherwise somewhat gloomy real estate context.
Among the six major coastal areas, including the English Channel, Brittany, the Atlantic, Languedoc-Roussillon, Corsica, and PACA (Provence-Alpes-Côte d’Azur), it is the latter two that have fared the best. Indeed, between July 2022 and July 2023, Corsica saw its prices increase by an average of 5.3%, and PACA by 5.2%, according to the MeilleursAgents website. « This prestigious coastline, highly sought after, attracts a clientele less sensitive to borrowing costs, which keeps prices on the rise, » explains Barbara Castillo Rico, Head of Economic Studies at MeilleursAgents. »
Moreover, Port Grimaud fulfills all the fundamentals for a profitable long-term investment.
Its location on the Mediterranean coast is exceptional, its architectural quality is appreciated by travelers, and its living environment is highly praised.
The fact that there are almost as many moorings as there are residences makes Port Grimaud a paradise for sailing enthusiasts.
With such advantages, it is easy to understand that Port Grimaud is not sensitive to trends but indeed offers an exceptional holiday setting that will continue to appreciate in value over the years.