France currently has more than three million second homes and the majority of them are located in the PACA region. As the summer holidays approach, the Côte d'Azur is one of the favorite destinations for many tourists. So why not you ? In addition, investment in a furnished apartment in Cannes, located by the sea has increased by 10% this year.
A region with great potential
The riches of the coast are no longer to present. From Provence to the Côte d'Azur, via the Alps, you have everything you need for an unforgettable holiday: in the countryside, in the mountains or by the sea. The region has something for you impress with its diverse reliefs, its climate and the various activities available to all types of holidaymakers. And there is also the Italian border which grazes in Menton, to offer a total change of scenery to visitors, in particular through its authentic gastronomy and its very particular charm. Today 4 out of 10 second homes located on the Riviera coast belong to French people. When a significant number of investors still seem somewhat perplexed by the new tax policy in force, most have decided to take the plunge to take advantage of unusual vacations in the country.
Higher profitability
Furnished rental is the new trend to follow and it is booming throughout France. In 30 years, the rental supply has more than doubled and this option continues to attract more and more tenants than investors. On average, the latter receive rents that are 10% to 30% higher than empty dwellings. And taking into account the very high standard of the accommodation offer and the exorbitant prices observed on the coast during the high season, a rental investment is simply less expensive in the long term. But this will obviously be taking into account the costs associated with the management of the property, particularly in terms of maintenance, works, taxes, etc. Either way, seasonal rentals on the Côte d'Azur remain a profitable investment. In addition, in this region, there is not really a low season, the second homes are occupied (almost) all year round. The Paca region is indeed one of the French areas which benefit from annual international tourism. All the more reason to amortize your secondary investment.
A booming market
In 2018, the second home market benefited, like the traditional real estate market, from largely low interest rates. A trend that manifests itself mainly in the level of two-room rentals and studios, perfectly suited for a vacation rental. This type of market is also very common on the Côte d'Azur, which means that there are always goods available in the area at all times. In Menton and Cannes alone, 40% of homes are second homes. A market mainly occupied by residents (60%) but also by foreign investors, mainly Americans, Spaniards and Anglo-Saxons.
