As of August 2023, the 20-year loan rates have reached an average of 3.84% in France, up from the average of 2.59% in January. Access to credit is tightening for many aspiring property buyers, yet property prices are not showing signs of decline. In this context, many investors are putting certain projects and investments on hold. However, it is precisely under these conditions that the most promising opportunities emerge.
Let’s explore the reasons why investing in real estate in Grimaud (particularly in Port Grimaud) is a wise choice in 2023.
Buy Now, Renegotiate Later
The 20-year loan rates currently stand at 3.84%, and a majority of analysts believe they could reach the symbolic 5% mark by the end of the year. For investors who have experienced rates around 1% or even 2% in recent years, this may be disappointing, and the era of positively cash-flowing properties seems to be ending. Nevertheless, it’s not a catastrophe by any means. In a real estate wealth-building strategy, the goal is to maximize the leverage effect, thus continuing to invest as much as possible. We are incredibly fortunate to live in one of the few countries where fixed-rate loans can be renegotiated when these rates drop. Multi-investors are aware of this and will seize this opportunity.
Tap into Strong Rental Demand
Of course, a rise in interest rates inevitably accompanies a decrease in the amount one can borrow. This « issue » can be overcome by investing in more modest-sized properties. Let’s take the example of the lakeside town of Port Grimaud. It’s renowned worldwide among sailing enthusiasts who can moor their boats right in front of their homes. However, it’s also a sought-after destination for Provence and Mediterranean lovers who don’t necessarily engage in nautical activities. It must be said that the setting is exceptional, offering a wide variety of activities to explore and villages to visit in the Gulf of Saint-Tropez.
Furthermore, we observe significant rental demand for apartments without moorings in Port Grimaud. Given this scenario, investing in one of these apartments can be highly rewarding. You could indeed become the owner of a 34m2 studio on the ground floor for €270,000 in the Port Grimaud 1 district, or acquire a meticulously designed 4-room apartment optimized for seasonal rentals near the beach, with a listed price of €435,000.
Embrace Timeless Luxury in the Gulf of Saint-Tropez
Over the decades, the allure of the Gulf of Saint-Tropez has remained steadfast, transcending the glitz and glamour to reveal Grimaud, Saint-Tropez, Ramatuelle, and other Gulf villages as magnificent gems of Provençal architecture.
Owning a home or apartment just minutes away from the beach in an idyllic setting with exceptional sunshine is a dream that endures through time. Such properties start at a minimum of 1 million euros and are classified as luxury assets. And as you know, luxury is impervious to crises, especially during challenging times. Neither the pandemic nor the conflict in Ukraine have shaken the confidence of the world’s most affluent individuals.
Take a look at this graph published on the MeilleursAgents website: apartment prices in Port Grimaud have continued to rise by 2.1% over the past 3 months and an impressive 8.7% over the past year.
The trend is similarly positive for houses, with sales prices increasing by 2.3% over 3 months and an impressive 7.3% over 12 months.
Investing in Port Grimaud is more intelligent and strategic than ever in the context of building a lasting legacy. The demand remains strong, both for buying and renting. Your property will continue to appreciate over time, and if you secure a loan in French banks today, you can always renegotiate your credit when the time is right.