While the focus of real estate commentary has been on cities and the trend of world urbanisation cited at every turn, the role of the retreat has been overlooked. For centuries, the wealthy of the world have made their money in cities but spent it in the countryside or the seaside. The French Riviera is the epitome of this trend and has attracted the rich and famous of Europe and the western world for nearly two centuries.
Now that core city markets around the world have reached a high plateau of prices and activity, wealthy homebuyers who already have the trophy city properties around the world are looking further afield for either investment returns or additional homes, sometimes both.
This means it is the turn of the retreats and resorts to perform, both primarily and as locations of choice for those with the means to afford them. While there are huge long-term opportunities for new resorts to develop, particularly to serve the growing, ageing and affluent middle classes of Asia, it is the established, diverse and ‘real’ places that we think will be earliest to recover.
The exceptional attractions of Monaco have already shown how the best retreats, resorts and ‘alternative cities’ can behave when they become a focus for ultra-prime buying activity. The French Riviera is ‘next in line’ for this attention along with other select Mediterranean and Caribbean enclaves. Linked to the French economy and property markets, it is nevertheless out-performing and set to do so in the future. This report will tell you why.
Source : Savills