The fall in property prices continues on the French coast

From the splendor of Brittany to the splendor of the Côte d'Azur, this study shows an overview of the prices of three-room apartments, a reference typology, in the most active seaside resorts in terms of new real estate development. Once again this year, coastal cities are seeing their supply of new properties restricted; nevertheless, price reduction opportunities remain to be seized.

Between two weekends in May, acquiring a new property by the sea may have given you the desire. Thanks to the improvement in real estate credit conditions, while the prices of new apartments tend to fall in France, buying new housing on the French coast is becoming easier. Even if the supply is reduced, certain price corrections in seaside destinations should not be missed because long-term valuation is almost assured.

What is the price of new properties in seaside resorts?

In 2022, the coastal barometer from Find-un-logement-neuf.com showed double-digit increases almost everywhere. Last year, the first lulls were visible, despite an increasingly weak supply. This year, there is good news, there are once again opportunities for price reductions to be seized.

In a post-health crisis context, the French coast continues to appeal for a retirement in the sun, an investment in seasonal or classic rental, or even a semi-secondary or semi-primary residence for those who can telework a good distance from the capital or large cities. regional metropolises.

Demand was strong on the Normandy coast and the Atlantic coast, less so on the Côte d'Azur after confinement but paradoxically, price developments do not necessarily follow these trends. Examples in La Rochelle in Charente-Maritime or Saint-Malo in Ille-et-Vilaine where the average price of a T3 falls by almost -5% in one year. Despite the presence or proximity of a TGV station to connect Paris in less than 3 hours, these two cities have falling prices. Allow €352.800 on average to buy a new three-room home in La Rochelle, €361.300 in Saint-Malo.

Conversely, several dynamic localities in terms of real estate development are showing rising prices, such as in Hyères and Saint-Raphaël in the Var. With an annual increase of over 11%, Hyères displays an average price of €338.000 per T3. Saint-Raphaël, + 5%, now far exceeds €400.000 for a three-room apartment.

On the Mediterranean rim, the upward trend also continues in Sète. After + 19% last year, the increase is lighter: almost + 2% to €310.000 per T3, in this transfer market of a large metropolis, combining life by the sea and proximity to Montpellier.

However, the trend in PACA is largely downward, like Antibes and Menton in the Alpes-Maritimes. Among the most dynamic localities in terms of real estate development in this tourist region, most have falling prices. Out of around fifteen localities, around ten are in decline. Illustrations with Antibes which recorded a drop of -6% to fall below the threshold of €440.000 for a three-room apartment on average, while Menton, almost -4%, offers a price of €424.500 on average.

For Céline Coletto, spokesperson for Find-un-logement-neuf.com: “It must be emphasized that living on the coast does not necessarily mean moving away from major cities; on the contrary, many coastal towns and communities benefit from their proximity to a TGV station, thus offering the possibility of reaching Paris in less than 3 hours. »

High volatility in new property prices by the sea

The new seaside real estate market is strongly influenced by the lack of supply, which results in price volatility. In the selection presented by the Find-un-logement-neuf.com portal, the reduction in the supply of new housing available for sale creates notable instability. As supply reduces, prices become more fluctuating, although spreads tend to narrow, varying from -7% to +12%. The annual changes in new property prices on the French coasts vary greatly from one coastal city to another, but overall, the trend remains relatively balanced in this barometer, with as many increases as decreases in the 10 cities selected for their activity in the new housing sector, from Saint-Malo to Menton.

This high volatility can be explained by several factors. On the one hand, when supply decreases, prices become more unstable, especially when it comes to programs offering high-end housing. On the other hand, the finalization of operations of this type may result in a significant drop in prices. Thus, the combination of these elements contributes to the significant gap in price developments.

In this dynamic, cities like Honfleur in Calvados with an increase of 10% and La Baule in Loire-Atlantique with an increase of 11% recorded the largest increases, while Anglet benefited from the strongest price correction, with a drop of -6,5% to €451.600 for a three-room apartment.

In addition, whether the cities are on the rise or the decline, there are only a handful of new programs on the market in each of these seaside resorts, which explains the high volatility of prices. It is therefore advisable to prospect widely in several cities to benefit from the best opportunities at the best time.

These most expensive tourist cities in France

Renowned destinations such as Saint-Tropez, Biarritz, Le Touquet, Deauville, Dinard, and many others, are absent from this barometer due to a supply currently too limited to allow a reliable average of real estate prices nine.

Among the seaside resorts with at least three new programs on the market, it is now Capbreton which replaces Anglet last year, now 7th, and becomes the most expensive tourist town in this 2024 barometer with an average price close to €550.000 the three-room apartment. A price however falling by €50.000 and almost 9% in just six months.

Also note the arrival of La Ciotat in Bouches-du-Rhône in second place in this Top 5 of the most expensive cities in France for new seaside real estate. La Ciotat which makes its entry into this ranking and which shows an increase of 16% in six months.

More accustomed to this podium, La Baule-Escoublac displays a price of €470.000 for the three-room apartment on average with a sawtooth evolution: + 11% over one year, - 3% over the last six months.

Another entry in this ranking, the 8th arrondissement of Marseille, very popular, which, with its beaches from Prado to La Pointe Rouge to Les Goudes, has something to seduce while living in France's second city. You will have to pay almost €470.000 on average to acquire a three-room apartment. A price down 1.6% in twelve months.

Opportunities for investors on the coast

The end of the Pinel law is approaching, so there is a last minute opportunity to invest with this system in new real estate by the sea. While furnished tourist rental is increasingly criticized and the tax advantages could be revised, the Pinel law remains attractive. Pinel investors can build assets while reducing their taxes by up to €6.000, under certain conditions.

Interesting opportunities remain with affordable prices for new real estate by the sea. Like Honfleur, for example, a three-room apartment sells on average at €302.000, while in Berck-sur-Mer in Pas-de-Calais, you can become an owner for less than €250.000 on average. In Courseulles-sur-Mer in Calvados, the average price of a three-room apartment is less than €210.000.

Even on the Côte d'Azur and the Mediterranean rim, towns like Fréjus offer affordable properties, with three-room apartments for less than €300.000 after a drop of 10% in one year. Options are also available in medium-sized waterside towns such as Brest, where prices have fallen by almost 3%, with an average price of around €290.000 for a three-bedroom apartment.

Conclusion

In the French real estate landscape, properties located by the sea therefore stand out for their versatility and universal appeal. Coastal property allows rare flexibility for its owners to alternate between personal use and rental, whether annual or seasonal. This fluidity of use gives coastal apartments and houses remarkable liquidity on the market, being able to be offered as both primary and secondary residences.

Due to this adaptability, coastal real estate represents an attractive investment, combining financial logic with the aspiration of a life by the sea. Although prices have increased significantly in recent years, the normalization of the market and the resolution of credit problems indicates a gradual rebalancing. With its 5.500 kilometers of coastline and nearly 900 seaside resorts, the French coastline offers a wide range of investment opportunities in the new construction sector.

Methodology: a real-time calculation method

The current average price of new real estate in French coastal tourist towns was calculated on Monday May 13, 2024 for the reference surface area of ​​a new three-room apartment, according to the prices indicated each day by the site's advertisers Find-un-logement-neuf.com: on a minimum basis of 3 different new real estate programs for each location.

Illustrative image of the article via Depositphotos.com.