New build property up 56%
The volume of new build for sale rose 56% in 2011, though the price dropped on average by 5%. The number of resale properties dropped but prices were up.
The number of new build properties jumped 56% up to 4,525 last year, up from 2,908 in 2010. Around a quarter of these were entire buildings sold in one lot, for uses such as council housing. The prices dropped on average 5%, still making them an expensive option compared to resale apartments. A new build apartment in Nice tends to retail around €8,300/sqm, around 25% more expensive than a similar resale apartment, and around twice the average regional price of €4,049/sqm.
Resale apartments registered 11,003 for sale in 2011, down 5% from 2010 but up 10% compared to 2009. The steady sales over the past four years have seen modest growth in price year on year, including the past year.
We do not expect the increase in new build purchases to filter down and boost the resale market over the next few years due to the price differential.
Market report from Phillip Temple, Managing Director of Med In Heaven, the French Riviera property brokers