If you're a home owner on the French Riviera and are considering selling the good news is that a new report predicts that property prices will increase by 6% in 2011. The study, carried out by Warde Property and professor Gregory Gadzinski of the International University of Monaco, is one of the first comprehensive studies of its kind for the Cote d'Azur residential property market.

"The French Riviera housing market combines characteristics of a luxury real estate market with a more standard real estate market", says Donal Warde, co-author of the report and founder of Warde Property. "The former can be deemed as the coastal towns and cities between Saint Tropez and Menton, while the latter is generally considered to be most inland towns and most of Nice. This very peculiar nature may then explain the stability of this market compared to other regions."

"According to the FNAIM, the French real estate agents association, prices in France are likely to increase between 3% and 6%. Accounting for local drivers, we think that the French Riviera market may be in line with the highest end of those forecasts", explains Gadzinski, a professor of economics and formerly of the European Central Bank. "The French Riviera real estate market is characterized by exclusive markets with Nice as the largest population centre, at 348,721 according to the 2007 census figures. The region's development over the last several decades has been driven by a tourism boom, government employment and the development of the employment hub of Sophia Antipolis and Monaco as a major financial centre.

"The French Riviera, the Greater London and the Greater New York regions experienced a similar real estate boom during the 2000's. While the New York market reached its peak in 2005/2006, it was not until 2008 that the French Riviera and London real estate market peaked."

"Prices on the French Riviera and in the Greater London area have moved on similar trends over the past ten years. The price evolution changes dramatically when currency movements are taken into account. The decline of the US Dollar and the British Pound compared to the Euro accounts for a substantial widening of the overall differences over the 10-year period.

An investment in US real estate by a Euro-based investor in January 2000 returns only 2.8% per year, which is quite low and well below expectations considering there was a real estate boom in the US."

What advice does Warde have for buyers or sellers at the moment?

"If you are American or British, looking to sell and bring your cash back to the UK or US, then you should seriously consider selling in the current market. The combination of price growth and attractive currency rates make it quite appealing at the moment", explains Warde. "For international buyers, purchasing your property with current low mortgage rates and the prospects of higher prices should protect them from major currency movements and provide a solid, long term investment."

The full report, 'French Riviera Property Market Report – Q1 2011' is available here.

Warde Property are estate agents based in Nice specializing in international clients buying and selling property on the French Riviera.

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