Covid-19: what consequences for the real estate market on the Côte d'Azur?
24 April 2022
The Covid-19 health crisis has had a strong impact on the real estate sector in France, but especially on the French Riviera. After several months of being locked up in a small apartment with no outside space, Parisians and other residents of large cities preferred to leave the cold and gray to settle under the sun of Nice. A real urban exodus. First of all, this situation is due to the price of m2. In Paris, the average price of a square meter is €10,000 (without an exterior), whereas in Nice it is half that price! Moreover, what could be better than to find the advantages of the region: a paradisiacal climate, the sun, and the sea. This situation has strongly changed the real estate market in Nice....
Mylene, Manager of the Ashley&Parker Cimiez Agency answered a few questions to explain the situation:
- Question 1: What impact did the Covid-19 and the confinements have on the real estate market in Nice?
"The explosion of demand, which was already very strong before the Covid-19, is one of the major impacts that we have noticed. There was a need for change that was strongly felt with a great need for interior and exterior space. As a result of telecommuting, it was necessary to have an office space at home while reconciling the relaxation space. The property became more than a home, it became a multifunctional place".
- Question 2: What was the market like before the Covid-19?
"There was really a before and after, although the before was already very buoyant. The Nice market has always been a dynamic market, despite the crises. In 2019, the number of transactions had reached a record level as more than one million transactions were counted. In 2020, despite 3 months of confinement over the entire year, the number of transactions recorded was approximately the same as in 2019. In 2021, there was a new historical record as nearly 1,200,000 transactions were recorded."
- Question 3: Has the budget been increased?
"Paradoxically, despite the crisis, the budget of buyers has increased. The still low real estate credit rates have not blocked the real estate market".
- Question 4: Has there been an influx of foreigners/residents to the region because of Covid-19?
"The closed borders have changed our dynamic with foreigners. But we have seen a significant flow of residents to our area.
A large number of buyers from Paris or from the North of France are looking for a property in Nice or the surrounding area. If some are looking for a second home to spend the weekend or vacations, for others, it's a real exodus. Thanks to the Covid-19 and the development of telecommuting, more and more people from the Paris region are leaving to come and live in Nice. In search of a better quality of life with the sun, the sea, and more space inside and outside, these new Nice residents offer themselves what they can never have in the capital while having the feeling of doing good business. This contributes to maintaining our market in high spheres since this clientele arrived in mass, has a strong purchasing power. It is important to know that most Parisian buyers who are used to prices exceeding 10,000 €/m2, buy here, at the price without negotiation or very little".
- Question 5: Did prices rise, stagnate, or fall because of Covid-19?
"There was a gradual increase, especially after deconfinement. The market went back even stronger than before, it was amazing. Then there was a stabilization of prices over the medium term. Now we have to see how it will go with the real estate credit rates that are slowly but surely increasing. The new regulation on the DPE will also potentially contribute to modifying the market and influence prices".
- Question 6: After these 2 years of health crisis, how has the market evolved?
"Today, we are entering the second quarter of 2022 and I find that the market still remains dynamic. The demand is still very strong. On the other hand, there is a decrease in the number of properties offered for sale, which tends to fuel a certain tension. In addition, a good number of sellers have become very ambitious in terms of the presentation price of their properties for sale".
- Question 7: How do you see the future of the real estate market in Nice?
"The Nice market will always be buoyant in my opinion. The French Riviera is a very attractive region in France and throughout the world. I think that the real estate market will remain dynamic whatever happens, possibly characterized by increases and decreases depending on the economic situation".