Enzo Marchetti, an Associate at Enness International, has commented on the re-emerging attraction of top-end properties in the South of France.
“It’s not new to say that France, and especially the French Riviera, is a major hub in the luxury housing market of Europe.
“France has just emerged from a challenging five years, with major economic and political problems, but, thanks to recent election results, the time to look ahead has come and the future looks bright.”
With extensive tensions and worries in England with Brexit, HNWIs and UHNWIs have an increasingly strong interest in buying in the South of France as the London property market’s future appears less strong over a long-term basis due to diminishing yields and capital growth.
“The significant change in the political situation in France has had a resounding impact on the property market, Mr Marchetti stated. “Macron has brought a ‘fresher’ image to the country and residents feel increasingly confident in investing considerably more money in property.”
Economically speaking, Mr Marchetti says that France is forecast to enjoy a strong 1.7 percent GDP growth in the coming quarters, which once again shows how the newly-elected president has positively impacted the global country’s situation. “That being said, many European investors do consider France’s future as being the brightest in the EU.”
Mr Marchetti, added that from St-Tropez to Cap-Martin, passing by Cannes, St Jean Cap-Ferrat and Monaco, such places have always attracted the ‘super-rich’ and historically low rates have enticed them even more.
“In terms of mortgages, France is currently very competitive, structuring them in a way to optimise their wealth tax exposure. Low interest rates mean money is cheap and HNWs will not miss the opportunity to get it if they can.
Mr Marchetti stresses that international banks have also lowered their margins to attract further foreign investment and countries such as England are taking advantage of it.
“Buying a secondary or tertiary home in the Riviera is not just a very safe way of placing your money, but also a good opportunity to generate income. Taking Cannes as an example, the city offers a full-year event diary attracting celebrities and investors from all over the world.
“Incumbent countries such as Russia or the UAE have already settled down in the Riviera, so the million euro questions is, who are going to be the next big buyers of the South of France? And how are the banks going satisfy their financing needs best?”
Enness International is the specialist, high-end lending division of Enness, who last month hosted a party at Thirty Nine that celebrated both the company’s ten-year anniversary and the recent launch of their office in Monaco.
Erness caters for clients looking to acquire or refinance overseas property, specifically those located in France, Monaco, The Balearics and Switzerland. (Homepage image: Flickr Michael Gwyther-Jones)