Second Home in France: A Promising Market for Foreign buyers

With an impressive 3.6 million second homes, France solidifies its position as one of the world’s most dynamic real estate markets. As the world’s leading tourist destination, France attracts millions of international visitors every year, drawn by its unparalleled cultural heritage, diverse landscapes, and enviable quality of life. This enduring appeal has spurred an increasing trend of foreigners purchasing second homes across the country.

These buyers hail from all corners of the globe—Britain, Scandinavia, the United States, Asia, and the Middle East—and display diverse preferences. Some invest in iconic properties, such as castles or beachfront villas, while others opt for more modest yet equally well-located residences. New air travel routes have further fueled this growth by improving accessibility to many regions, thus enhancing France’s allure as a second-home destination.

Despite the burgeoning interest from foreign investors, French developers have yet to fully capitalize on this growing demand. Here are some strategies for developers to seize the opportunity:

• Tailored Real Estate Projects : Luxury amenities like customizable layouts, premium services (e.g., concierge or 24/7 security), and eco-friendly infrastructures are key to attracting international buyers.
• Global Marketing and Visibility : Increasing presence on international platforms, partnering with cross-border real estate agencies, and showcasing offerings at global property fairs, such as MIPIM, can unlock new market segments.
• Simplified Administrative Processes : Offering services like bilingual contracts, expert guidance on French property laws, and streamlined tax advisory services can build trust and confidence among international clients.
• Emphasizing French Heritage : Properties tied to France’s cultural identity, such as châteaus or traditional Provençal homes, hold strong appeal. Developers should prioritize incorporating these unique attributes into their projects.

A promising yet underdeveloped niche in the French market is branded residences—homes associated with high-end brands or luxury hotel groups. These properties blend residential comfort with five-star services, offering distinct advantages:

• Premium Services : Concierge, rental management, spa facilities, and 24-hour security.
• Ease of Ownership : Simplified management options cater to absentee owners.
• Strong Investment Value : Properties tied to renowned global brands maintain high resale value.

While branded residences thrive in markets like the U.S. and UAE, France lags in leveraging this trend. Notable projects, such as Port Marseillan in southern France and les Bordes (Orléans), are starting to address this gap. Industry leaders like Propriétés & Co, are driving innovation in this sector.

The profiles of owners of secondary residences in France are diverse. Foreign buyers often favor iconic destinations such as the Côte d’Azur, Provence, Occitanie, and Paris, drawn by the unique blend of culture, history, and lifestyle. On the other hand, French buyers typically seek properties in coastal or mountainous areas, like Brittany or the Alps, for their natural beauty and proximity.

Interestingly, a reverse trend has emerged in recent years: more French nationals are investing in foreign real estate. Popular destinations include Portugal, Spain, and Greece, where competitive property prices and sunny climates are major draws.

Although demand from international buyers for secondary residences in France remains strong, the market is still underutilized. To fully leverage this potential, real estate developers need to cater to the international clientele by:

• Offering Personalized Services: 
Developers could enhance their appeal by providing tailored services like bilingual contracts, fiscal guidance, and comprehensive support for navigating administrative complexities.
• Highlighting Innovative Solutions: 
One promising area is branded residences, which are high-end properties managed by prestigious hotel groups. These developments, often featuring top-tier amenities like concierge services, spas, and property management, appeal strongly to foreign investors seeking hassle-free ownership.
• Forming Global Partnerships: 
Collaborations with hotel brands - such as Marriott International, Accor, IHG, Hyatt, Four Seasons, Mandarin Oriental, Aman Resorts, One & Only Resorts, Garrigae Resorts… - can enhance the prestige and marketability of these properties. By aligning with such brands, developers can ensure high resale values and attract affluent clientele.

Branded residences, which have already gained significant traction in regions like the United States and the Middle East, are emerging as a valuable niche in France. They offer a blend of luxury and convenience, particularly attractive to foreign buyers who might not reside in France full-time.

In summary, secondary residences are not just a cornerstone of France’s tourism sector but also a significant opportunity for innovation in the real estate market. By modernizing their strategies and focusing on premium offerings like branded residences, developers can tap into the growing demand and elevate France’s status as a premier destination for property investment.

Arthur Espada of Slowlife Resorts highlights the urgency: “Following the success of the 2024 Olympics, there’s been a global surge in demand for branded residences, growing 12% annually. Yet, France still lacks sufficient inventory to meet this burgeoning demand, especially for luxury properties managed by top-tier hotel operators.”

France boasts unrivaled strengths for attracting foreign second-home buyers: diverse landscapes, an unparalleled cultural heritage, and world-class gastronomy. However, the market remains ripe for innovation and expansion. By embracing solutions like branded residences and internationalizing their outreach, French property developers can unlock the full potential of this promising market.

This evolution not only bolsters tourism but also enhances France’s global prestige as a luxury real estate destination. With its exceptional heritage and unmatched quality of life, France is poised to become a global leader in second-home investments.