créée le 19 / 09 / 2016

A closer look at the real estate market of the PACA region

Crédit Foncier published a study on the real estate characteristics of the thirteen new regions, which took shape in January 2016. These figures gave a quick sketch of this region, which is highly popular among retirees and foreigners.

Demography and economy : a rather dynamic overall picture

  • 4.9 million inhabitants (8% of the French population), concentrated mainly in a very dense urban network on the coast. Three large urban centres are on the seafront: Marseille (1.7 million inhabitants), Nice (1 million inhabitants), and Toulon (607,000 inhabitants).

  • From 1990 to 2014, the population grew 15%, outpacing France (+13%).

  • The proportion of individuals between the ages of 20 and 59 is expected to fall in Provence-Alpes-Côte d’Azur from 52% today to 45% in 2040 (compared with 54% to 47% for France overall).

  • The PACA region ranks third in per capita GDP (€30,600) among all of the new regions.

  • Historically, services represent an important part of its economy, particularly because of trade (coastline and port of Marseille) and tourism (the region accounts for 11% of tourist spending on French territory).

  • Corporate services are growing quickly, while the water, waste, and chemical industries are developing.

  • The unemployment rate is 11.6%, which is above the national rate. However, unemployment is greater in Marseille, Nice, and Toulon.

  • A very distinctive real estate market

  • Representing a 59% share, flats are far more numerous in the region than individual houses.

  • Not surprisingly, the rate of secondary residences and occasional dwellings is 17% in the region, compared with 10% for France.

  • Owners make up 56% of the region, which is 3 points below the national average.

  • Average prices per square metre – €3,899 for new property and €3,393 for existing property – are higher than France's average.

  • Outstanding mortgage loans totalled 70 billion euros at the beginning of 2015. The use of credit by borrowers in this region is nearly equivalent to the rest of French people.

  • Real estate perspectives on the region's three major cities

  • in Marseille, the study shows slower activity, particularly for new properties, with an 18% drop in new listings over the first nine months of 2014.

  • in Nice, same decline for new properties. For existing properties, the decrease in transactions is around 7%, for a 2% decrease in prices.

  • in Toulon, supply has grown significantly for new properties, with a preponderance of two-room and three-room properties. For existing properties, the volume of transactions has decreased with major disparities depending on the sector.

  • To learn more: CFF's PDF on the new Provence-Alpes-Côte d’Azur region can be downloaded here

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