French Riviera property price report

March 13, 2011 - PRLog -- A new economic report predicts French Riviera real estate prices to increase by 6% this year. "After a challenging two years for property investors, this will come as welcome news", says Donal Warde, co-author of the report.

"The French Riviera real estate market has undergone tremendous price increases over the last few years and when compared to the New York and London real estate markets, the former boom is greater", explains Warde.

The report includes data analysis such as housing starts, new build prices, population growth and GDP increases.

"While the New York market reached its peak in 2005/2006, it was not until 2008 that the French Riviera and London real estate market peaked. The resilience of the London luxury property market has been well publicized with a number of large deals announced in 2010. On the French Riviera, the luxury market has been quite similarly rebounding, in particular on Saint Jean Cap Ferrat, the most exclusive address on the French Riviera", states the report.

"The price evolution changes dramatically when currency movements are taken into account. The decline of the US Dollar and the British pound compared to the Euro is clearly visible and accounts for a substantial widening of the overall differences over the 10 year period. An investment in US real estate by a Euro-based investor in January 2000 yields only a 2.8% return (annually compounded) over the entire 10 year period to December 2010, due to the market downturn and currency movements. The same investment on the French Riviera yields 8.87% per year (annually compounded)", the report continues.

Warde Property's Donal Warde predicts prices to increase by between 3 and 6% this year, in light of limited supply, a rebound in demand and favourable mortgage conditions.

So what does this mean for investors?

"The French Riviera has shown itself to be one of the most resilient in the world. Over the last 10 years, prices has undergone a substantial boom and while short term price increases are expected to be in the single digits, overall it compares very favourably to other investments", answers Warde.

To see the complete report, visit:
http://www.wardeproperty.com/blog/index.php?/archives/27-...

# # #

Estate agents in Nice, France, with villas and apartments from sale across the French Riviera. Warde Property estate agents are the top realtor on the French Riviera.

Photo:
https://www.prlog.org/11370442/1