Investing in Beach Resorts: What Opportunities Are There for Investors?
Seaside resorts are an attractive option for investors seeking stable rental rates. However, to maximize profits, it is crucial to fully understand the unique characteristics of this market. Certain resorts stand out for their investment potential, offering a variety of opportunities depending on the region.
While the real estate market is struggling to recover in many regions of France, seaside resorts stand out as safe bets. In 2024, prices in these areas rose by 1.1 percent, compared with a nationwide decline of 1.8 percent. Over a three-year period, some resorts have even seen prices rise by 13.3 percent. However, this trend masks significant regional disparities.
The Most Expensive: Prestige and Profitability
The most renowned resorts, such as Ramatuelle, Saint-Jean-Cap-Ferrat, and Saint-Tropez, offer high profitability potential despite high purchase prices. These prestigious locations enjoy steady demand, which drives prices upward. In July 2024, the average price of a beachfront property was €4,943 per square meter. However, investing on the Atlantic coast or in the Provence-Alpes-Côte d’Azur (PACA) region seems a wiser choice, with prices of €5,338 per square meter and €6,251 per square meter, respectively.
• Ramatuelle: 16,948 €/m²
• Saint-Jean-Cap-Ferrat: 16,416 €/m²
• Saint-Tropez: 14,656 €/m²
The Most Affordable but Promising Options
For those on a tighter budget, certain seaside resorts on the Atlantic coast and in other regions also offer attractive opportunities.
• Lège-Cap-Ferret: €11,565/m²
• Les Portes-en-Ré: €10,497/m²
Proximity to the Beach: An Essential Criterion
For investors on a tight budget, other areas may be worth considering, although price trends there are less favorable. The Channel region, Brittany, and Languedoc-Roussillon offer interesting options, including:
• Le Touquet-Paris-Plage: €9,225/m²
• Deauville: €7,207/m²
• Larmor-Baden: €6,731/m²
• La Trinité-sur-Mer: €6,518/m²
In Corsica, the seaside resorts of Corbara (€8,032 per square meter) and Pianottoli-Caldarello (€7,366 per square meter) are also worth noting.
Factors to Consider Before Investing
Regardless of the region you choose, there are several factors to consider before investing. Proximity to the beach, the composition of the housing stock, and the level of urbanization are key factors to evaluate in order to maximize the investment’s chances of success.
(source: Seloger)
