5 Factors that impact the Value of a Villa in The South of France

The South of France is often associated with luxury, charm, and breathtaking landscapes. However, buying a villa here requires a nuanced understanding of several unique factors that can significantly influence the value, desirability, and overall enjoyment of the property. Our consultancy company, A27, located in Monaco, provides the full scope of services to not only choose a financially viable investment, but also one that correlates with you mood. From location and accessibility to legal constraints and neighborhood quality, we have written a guide that covers all the essential aspects to consider when purchasing your dream villa in this coveted region.

1. Location

Location, location, location, as they say! Location is crucial when it comes to real estate, especially in the South of France, where certain areas are more exclusive, safer, and better protected than others. It is not only important to choose the commune wisely, but every detail down to the street and placement of the villa can impact the overall quality of the villa. Everywhere you go, you may have heard friends say "but which area of ... do you live in?" and that applies to the most prestigious regions of the world too.

Exclusive Areas and Safety

Not all locations in the South of France are created equal. For instance, areas like Cap Ferrat and Parc de Cap Martin are known for their seclusion and security, offering a more protected environment compared to more open and accessible areas like Cannes. These private neighborhoods, either as peninsulas or often referred to as "Parc Areas," provide an additional layer of security and privacy, making them particularly attractive to high-net-worth individuals, as it's unlikely for intruders to risk an escape through a single protected road.

Proximity to the Sea and Trendy Cities

As expected, villas with close proximity to the Mediterranean Sea are in high demand, as the ability to enjoy sea views or have quick access to the beach significantly boosts a property's value. Similarly, being near trendy cities such as Nice, Cannes, or Saint-Tropez, known for their upscale restaurants, shopping, and vibrant social scenes, enhances both the lifestyle and investment potential of the villa. That being said, it's important to be cautious about the villa's placement on the map! To accurately assess the villa's distance from civilization, a brief search on Google Maps can provide the actual information.

Villa placement and views

Properties on exposed hillsides may experience strong winds, such as the Mistral, which can affect comfort and outdoor activities. It’s also important to consider the property's orientation to ensure that it benefits from optimal sun exposure while being protected from excessive wind. Interestingly enough, there are many villas facing away from the sun, at the back of the hills, as luxury living in the South of France has been popularised long before air conditioning, so many old villas have been built in perpetual shade. With current technologies, trends have shifted and a sunny villa boasts a lot more value than a shady one.

2. Accessibility

While the South of France offers stunning scenery, its hilly terrain and winding roads can create significant challenges in terms of accessibility. As said earlier, looks can be deceiving and while a property can appear close to larger cities, its true location sometimes ends up being on top of a cliff with no access by car.

Deceptive Distances and Road Quality

With seclusion and breathtaking views often come poor road conditions or winding, sloped, narrow routes. While most people would simply suggest to buy a smaller car (after all, the previous owners did just fine with theirs) and come to terms with long uncomfortable journeys, many of our clients wouldn't be able to invite friends with Rolls Royces or even Range Rovers, heavily reducing their social life and status.

Limitation of Services

If the road leading to your villa is too sloped or narrow, it might be challenging for larger vehicles to reach, which could be a problem for deliveries, emergency services, or construction vehicles. This may not only limit quality of life, but make it impossible to improve or repair the villa without excessive additional costs.

Road Placement

The positioning of the access road relative to the villa is crucial. Ideally, the road should be above the villa to avoid excessive noise. Indeed, a very large number of villas that follow the hillside topography and offer sea views either have road access from the bottom of the villa or the back/top. Choosing a villa with a frontal road access will almost always result in disturbance of tranquillity.

Public Transport for Staff

If your villa is located in a more remote area, ensuring good public transport links is vital, especially for staff who may not live on-site. Poor public transport can lead to logistical challenges and additional costs, such as providing transportation or on-site accommodation for staff.

Septic tanks

While talking about glamorous villas, one can simply not resist mentioning the issue that burdens the entire coastline, which is the inability to install a centralised sewage system in certain areas. Indeed, when visiting your dream villa, find out whether your sewage will be collected via septic tank or through sewagers. If it's the former method, you may be plagued by occasional smells.

3. Neighborhood Quality

The surrounding properties and neighborhood dynamics play a critical role in maintaining your villa’s value. It is no secret that one of the greatest rules of real estate investment is to always invest in the cheapest asset of the best location.

Area Prices

Locations that are considered to be luxurious areas tend to see prices increases throughout the years, as well as benefit from price stability during periods of crises. While a villa can feel to be a perfect fit, if the surrounding villas don't have the same standards, the value of that villa is at a much greater risk of decreasing than skyrocketing.

Uniformity in Property Standards

Villas surrounded by similarly high-quality properties tend to retain their value better. Disparities in property quality can lead to issues with neighbors such as noise complaints and may negatively affect your villa’s market value. For example, if your villa is surrounded by smaller or less well-maintained homes, it could impact your property's prestige and desirability.

4. Zoning and Legal Restrictions

The South of France has very specific urban planning restrictions in every district. On top of that, some areas classified as "red zones", particularly those located on cliffs or other high-risk areas, often create construction dilemmas. These zones come with specific legal constraints that can limit what you can do with your property.

Planning Permit Headaches

While to locals, nothing is challenging, many international buyers are shocked to find out the exact scope of limitation on seemingly vast territories. Real estate agents frequently mention the possibility of constructing a swimming pool when showcasing a villa without one, stating that it is permissible. However, you can rely on an urban planning guide that is regularly updated to provide precise information on the potential modifications that can be made to a property or land. In the South of France, it is generally acceptable to make alterations to a property by increasing the livable area by up to 10% of a plot of land, and even adding a swimming pool as long as the land is not designated as green space. If a villa is highly deficient in livable area and lacks a swimming pool, favourable regional urban planning regulations can add value to the property. On the other hand, if the villa of your choice has a higher existing percentage of livable area than that indicated in the new urban planning guide of the area, it could be greatly advantageous, but would also make it impractical to demolish the villa and rebuild it. This means that an old villa with a poor foundation will require a complex restoration, driving the costs higher than a demolition.

Famous Red Zones

If you've ever searched for a villa in red zones, you'll know that you are typically not allowed to demolish and rebuild an existing villa to rebuild one. Instead, you must work within the existing structure, limiting your ability to modernize or expand the property, even if stated otherwise in the urban planning guide of the area. Additionally, you may face restrictions on the types of renovations you can undertake, particularly if these could impact the stability of the land or alter the landscape. In practice, this means that when you buy a villa in the red zone, you can only renovate it superficially and that your asset is at risk of being lost to a landslide within the coming decades. It may be needless to say that this reduces the villa's value.

Droit de Passage (Right of Way)

Ensuring clear and legal access to your villa is essential, especially in rural or remote areas. Disputes over droit de passage can complicate property ownership and usage. It’s important to verify that all access rights are properly documented and legally binding before purchasing.

5. Construction Challenges

The picturesque hills of the South of France provide stunning views but come with their own set of challenges, particularly concerning any renovations, reconstruction or maintenance of the villa’s foundation and structural integrity. Even when you've found your dream villa, the potential of the villa sometimes holds a lot more value than expected.

Soil Stability and Foundation Concerns

Given the region’s varied topography, the soil conditions can differ greatly from one location to another. Building on less stable ground may require extensive foundation work, which can be costly. Building on cliff rock can cost over 3 times more than on earthy terrains. It’s essential to have a thorough geotechnical survey conducted before purchasing land or a villa to ensure that the property’s foundation is secure and that any necessary reinforcement work is factored into your budget, especially in the case of an existing villa in a red zone.

Old Villas

Despite their unique charm, many properties in the South of France are historical and come with their own set of challenges. These older villas, often built decades or even centuries ago, may have outdated or weakened structures that require extensive renovation to meet modern safety standards. Reinforcing the existing structure without compromising its architectural integrity is a delicate balance that often involves specialized techniques and materials, driving up costs. Additionally, working with old buildings often uncovers hidden issues such as rot, outdated wiring, or plumbing that needs to be completely replaced. Upon realisation of these issues, it's not uncommon to demolish the existing structure and build a new one, as renovation works can be more costly. While inexperienced buyers may assume that building a new villa could be a great opportunity at increasing value, construction costs, namely demolishing concrete, can add 30% to the villa's cost.

Coastal Conditions

Villas located near the sea are exposed to harsh coastal conditions, including high winds, salty air, and humidity, all of which can take a toll on building materials. Over time, these conditions can lead to corrosion, rusting, and degradation of structures, particularly those made from metal or wood. When buying an existing villa, building or renovating in these areas, it is crucial to select materials and construction techniques that can withstand these elements.

Skilled Labor and Project Management

The South of France attracts skilled craftsmen and construction professionals, but their services come at a premium. Managing a construction or renovation project in this region often requires a dedicated project manager who can coordinate between various specialists, from architects and engineers to builders and landscapers. International buyers are often shocked to find out the real costs of increasing the value of their villa.

Conclusion: The Impact on Property Value

Each of these unique local factors plays a crucial role in determining the desirability and value of a villa in the South of France. Villas that score well on these criteria tend to be highly sought after, offering not just a luxurious lifestyle but also a sound investment with strong potential for appreciation.

Investing in a villa in the South of France is a dream for many, but it requires careful consideration of these unique challenges and opportunities. By thoroughly understanding and evaluating these factors, you can ensure that your investment not only meets your lifestyle aspirations but also provides long-term value in one of the world’s most prestigious regions.

Our consultancy offers turnkey services from market research to help with renovation. Contact us if you have any questions!