Where to invest on the French Riviera to maximize your return on investment?

16 September 2024

The French Riviera: A True Paradise on Earth

The French Riviera is a true paradise on earth, with its stunning beaches, sunny climate, and luxurious lifestyle. Whether you’re seeking a profitable real estate investment or looking to acquire a second home, this region offers a wealth of opportunities. Let’s explore where to invest along this breathtaking coastline.

Nice: A Prime Investment Hub

First, we must mention Nice, the capital of the French Riviera. With its iconic Promenade des Anglais and historic districts like Old Nice, this city attracts millions of tourists every year. Investing in rental properties in Nice can be highly lucrative, thanks to the constant demand for both short-term and long-term rentals.

In terms of real estate prices in the Provence-Alpes-Côte d’Azur (PACA) region, Nice remains more affordable compared to other prestigious cities in the area. The variety of available properties, from charming apartments in the old town to modern seaside residences, makes it an ideal option for any type of investor.

Cannes: Glamour Meets Profitability

When thinking of Cannes, the Cannes Film Festival and celebrities walking the red carpet immediately come to mind. However, beyond the glitz and glamour, Cannes is also a strategic location for lucrative real estate investments, particularly in the tourism sector.

The California district is one of the most sought-after areas, with its luxurious villas offering breathtaking views of the Bay of Cannes. Investing here ensures not only excellent rental yields but also consistent property value appreciation.

Tourist Attractions

The main draw remains the Croisette, with its prestigious hotels and upscale boutiques. Apartments near this iconic avenue are highly desirable during the peak season. Likewise, Le Suquet, Cannes’ old town, provides a picturesque setting that appeals to renters seeking historic charm.

Saint-Jean Cap Ferrat: Luxury and Tranquility

For those seeking a combination of luxury and serenity, Saint-Jean Cap Ferrat is a rare gem along the Mediterranean coast. Known for housing some of the world’s most exclusive properties, this area is perfect for real estate investments aimed at a wealthy clientele.

While prices may seem steep, the potential for profit is significant. Owners of villas in this area can expect exceptional returns, especially during the summer months when affluent vacationers flock to the region.

A Unique Setting

The natural beauty of Saint-Jean Cap Ferrat is a major asset. Surrounded by lush vegetation and bordered by crystal-clear waters, this location offers an unparalleled living environment. For investors, it guarantees sustained rental demand from individuals seeking a blend of luxury and privacy.

Mandelieu-la-Napoule: The Rising Star

Less famous than Cannes or Nice, Mandelieu-la-Napoule remains a compelling option for those looking to diversify their real estate portfolio. This town is renowned for its marina and numerous water activities, attracting a steady stream of visitors year-round.

While PACA real estate prices are climbing, Mandelieu still offers attractive opportunities. With controlled urban development and modern infrastructure, the town is increasingly popular with families and young professionals.

A Growing Market

Demand continues to rise thanks to the town’s pleasant lifestyle, which combines nature and modernity. Purchasing a seaside apartment or a villa in the hills ensures an excellent return on investment.

Mougins and Valbonne: Charm and Authenticity

For those preferring quieter areas away from the coastal hustle yet close to major attractions, Mougins and Valbonne are ideal options. Situated just a few kilometers inland, these towns retain a unique Provençal charm combined with modern amenities.

Thanks to their international schools and convenient facilities, they also attract expatriates and affluent families. Purchasing traditional homes or contemporary villas in these locations provides both a pleasant living environment and a secure investment.

A Preserved Landscape

Surrounded by lush green hills and enjoying exceptional air quality, these towns offer spacious properties often featuring large grounds—an appealing feature for buyers seeking tranquility and comfort.

Cap d’Antibes: Prestigious and Coveted

Globally renowned for its Eden Roc Hotel and stunning private beaches, Cap d’Antibes is a prestigious destination. Investing here means entering a premium real estate market where profitability aligns with exclusivity.

Whether for seasonal rentals or property resale, Cap d’Antibes is a safe bet. The scarcity of real estate offerings further enhances the allure of this peninsula.

Exceptional Properties

Cap d’Antibes boasts impressive constructions that blend classic and modern styles. These properties often include extensive gardens, swimming pools, and private sea access, making the area a top choice for discerning buyers.

Expert Guidance for Your Investment

If you’re considering a real estate investment in the Provence-Alpes-Côte d’Azur region, rely on the expertise of Estate Prestige Knight Frank. With over 20 years of experience, their team can guide you in selecting properties in Saint-Jean Cap Ferrat, Valbonne, Mougins, Cap d’Antibes, and many other idyllic locations along the French Riviera.

Taxation of Luxury Estates: Understanding the Challenges and Optimizing Wealth Management

30 July 2024

When acquiring a luxury estate on the French Riviera, it is essential not to overlook the associated taxation. These prestigious properties are subject to specific regulations that must be well understood to optimize wealth management. This article aims to inform our clients about the key tax components involved and highlights our expertise at Estate Prestige Knight Frank, where over 20 years of experience in luxury real estate ensure you a tailored service.

Local Taxes: Property Tax and Housing Tax

Property Tax: A Recurring Expense

Property Tax: A Recurring Obligation

Property tax is collected annually by local authorities and is divided into two components:

Tax on Unbuilt Properties (TFPNB):
If your estate includes land or undeveloped spaces, these are also subject to a specific tax.

Tax on Built Properties (TFPB):
This tax applies to constructed buildings, including luxury houses and apartments. The amount is calculated based on the property’s cadastral rental value, multiplied by the rate set by the municipality.

Housing Tax Abolished Since 2023

Since 2023, the housing tax has been abolished for the vast majority of households in France. This reform, implemented gradually, has resulted in a full exemption for primary residences. However, this exemption does not apply to secondary residences. Therefore, for luxury estates, which are often classified as secondary residences, the housing tax remains in effect. Owners of such properties must continue to account for this tax in their financial management.

Capital Gains Tax: Plan Ahead for Better Management

Calculation of Capital Gains Tax on Real Estate

The sale of a luxury estate generally generates significant capital gains. These are subject to tax upon resale, according to a progressive scale established by the tax authorities. The capital gain is the difference between the sale price and the original purchase price, adjusted by certain costs such as renovation expenses and acquisition fees.

Deductions and Exemptions

Exemption for Primary Residence: Owners are granted a full exemption from capital gains tax when the property is their primary residence at the time of sale.
Deductions for Holding Period: A deduction system based on the holding period can be applied, reducing the taxable base proportionally to the length of ownership. Thus, after 30 years of ownership, the capital gain is fully exempt from both income tax and social contributions.

Real Estate Wealth Tax (IFI): Increased Vigilance Required

Threshold and Tax Base

The Real Estate Wealth Tax (IFI) has replaced the Wealth Tax (ISF) since 2018. It is due from households whose net taxable real estate assets exceed €1.3 million. The tax base includes real estate properties owned directly or through shares in real estate investment companies (SCI).

Optimization Strategies

To minimize the impact of the IFI, several strategies can be considered:

Invest in assets that are partially or fully exempt from IFI, such as historic monuments or certain tax schemes encouraged by the government.
Use mechanisms such as Real Estate Investment Trusts (SCPI), which allow for portfolio diversification and may potentially reduce the taxable base.

Inheritance and Donation: Transmitting Your Wealth Wisely

Inheritance Tax

The transfer of luxury estates through inheritance is subject to specific taxes calculated based on the value of the property and the familial relationship with the heir. There are legal allowances that help reduce the taxable base before the progressive inheritance tax rates are applied.

Optimization of Donations

To avoid excessive inheritance taxes, making gifts during one’s lifetime is often a wise strategy. In France, each donor benefits from allowances that are renewed every 15 years, allowing for the gradual transfer of wealth while minimizing taxation.

At Estate Prestige Knight Frank, we understand that the taxation of luxury estates requires specialized expertise. With over 20 years of experience in luxury real estate, our team is dedicated to providing tailored and effective solutions to meet the needs of our wealthy clients. Our goal is to guide you through every step of your acquisition or sale, while maximizing tax benefits to preserve and grow your wealth on the beautiful French Riviera.

Heading West: Estate Prestige opens an agency in Bordeaux

10 June 2024

In recent years, Bordeaux has experienced an extraordinary rise. A dynamic city with a wealth of new projects, modern yet attached to its thousand-year-old history, the capital of Gironde is above all a gateway to the vineyards that have made its reputation. From historic châteaux to sumptuous mansions, from large wine estates to charming “pied-à-terre” wine estates on the Arcachon basin, the Bordeaux region offers the very best in prestige real estate. It’s therefore only natural that Estate Prestige has chosen to expand in Bordeaux, with a selection of high-end properties that meet the criteria of excellence so highly prized by our customers.

As experts in the sale of rare properties and wine estates, our team does its utmost to present you with exceptional places to live.

“Bordeaux is both a place of pleasure and of interest for property investment. Above all, we like to provoke encounters, stage the “coup de cœur”, and imagine the future.”
Guillaume Touroul-Chevalerie, Director of Estate Prestige Bordeaux

Discover prestige real estate in Bordeaux

Explore French Riviera’s Off-Market Real Estate with Knight Frank French Riviera

27 July 2023

The French Riviera, renowned for its stunning coastline, glamorous lifestyle, and luxurious properties, has long been a sought-after destination for real estate investors.

While the market is abundant with listed properties, there is a hidden world of Off-Market real estate waiting to be discovered. Delve into the allure of Off-Market properties on the French Riviera with Knight Frank French Riviera and discover why they are worth exploring.

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Off-Market Real Estate in a few words

Off-Market real estate refers to properties that are not publicly advertised or listed on multiple listing services (MLS).

These properties are often exclusive and available only through private networks, connections, or word-of-mouth referrals. Off-Market properties on the French Riviera are particularly desirable due to their exclusivity, privacy, and potential for investment opportunities.

Thanks to its unique network, expertise, and experience, Knight Frank French Riviera is able to offer you a selection of exceptional properties that match your own search criteria and meet your specific requirements.

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Benefits of Off-Market Real Estate

Exclusivity: Off-Market properties offer a chance to access exclusive listings that are not available to the general public. This exclusivity increases the chances of finding unique, high-end properties with exceptional features and locations.
Privacy: Many high-profile individuals, celebrities, and affluent buyers prefer to keep their real estate transactions private. Off-Market properties provide a discreet way to buy or sell real estate without attracting unnecessary attention.
Investment Opportunities: Off-Market properties on the French Riviera often come with potential for higher returns on investment. These properties may be undervalued, have development potential, or offer unique features that can be capitalized on.

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Access Off-Market Real Estate with Knight Frank French Riviera

Knight Frank French Riviera offers investors and buyers looking for exclusive, high-end properties unique, personalized access to a selection of off-market properties, villas and private mansions on the Côte d’Azur.

Thanks to our extensive network and expertise, as well as our insider knowledge, we can provide information on private listings and offer exclusive opportunities. Moreover, our personalized approach ensures tailored solutions, while our reputation for excellence guarantees a seamless experience.

Our personalized approach ensures tailor-made solutions, while our reputation for excellence guarantees an experience like no other.

Knight Frank French Riviera guides you into the exciting world of Off-Market real estate on the Côte d’Azur to explore its hidden gems: exclusivity, confidentiality, negotiating power and high yield potential await you.

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Knight Frank French Riviera Golf Invitational 2022

18 March 2022

Thanks to MIPIM this year, the Knight Frank French Riviera teams were finally able to get together and share a unique moment with their international clients and partners.

Knight Frank’s first golf competition took place on Wednesday 16th March 2022, in partnership with the iconic Cannes-Mougins Golf course. The 54 participants enjoyed a sunny 18-hole course game, followed by lunch at the clubhouse and a prize-giving ceremony.

The best of French Riviera village life

2 April 2020

Owning a home just a short stroll away from the popular villages of the South of France generates more and more interest from buyers. Especially for families determined to find a second home that appeals to all generations, and for whom the proximity of a village simply means that there is more to do. Passionate cooks can explore the markets, art lovers can visit the local galleries, teenagers can laze by the pool and everyone can enjoy the village bars and restaurants without having to use the car.

Close to the Mediterranean Sea with year-round activity based on colorful markets and shaded squares: this is the authentic Provencal lifestyle.

Cannes office: a record sale on the Croisette!

2 November 2019

It is with great pride that the Knight Frank Cannes agency confirmed the trend in the luxury residential market by carrying out, in partnership with the FINAMAS Group, the record sale of a superb penthouse duplex within the First Croisette residence in CANNES.

Discover the First Croisette residence

Once completed by the end of 2020, the development will offer apartments ranging from two to five bedrooms, with access to a luxury spa, 24-hour concierge service and secure underground parking. And, of course, most units will benefit from exceptional sea views.

Saint-Jean-Cap-Ferrat office opening

6 September 2019

Utterly glamourous with a location prized above all others, is Saint-Jean-Cap-Ferrat, where exclusive properties are the most expensive on the French Riviera. This year, Knight Frank opened a new office in Saint-Jean-Cap-Ferrat, showcasing some of the most extraordinary and beautiful villas on the Mediterranean.

Fredrik Lilloe, CEO of Knight Frank French Riviera said “We are incredibly excited to launch our new office in Cap Ferrat, making it the 6th Knight Frank office along the Cote d’Azur. Entering the Cap Ferrat market has always been in our midst and we truly believe that now is an opportune time to establish ourselves here.”