The beginning of October has brought several developments worth watching for anyone buying, selling or investing in property on the French Riviera or in Monaco.
Mortgage rates are rising again in France, the government is considering changes to the tax treatment of furnished rentals under the LMNP regime, and Monaco is moving towards greater transparency for foreign companies that own property in the Principality.
At the same time, property prices across the Côte d’Azur are not showing signs of a broad correction. The market is becoming more selective rather than simply cheaper: rare and well-positioned properties continue to hold up, while overpriced homes are becoming increasingly difficult to sell.
French mortgage rates are rising again
After several relatively stable months, French banks have started increasing mortgage rates once more.
In October 2026, average rates are roughly around 3.5% over 15 years, 3.6–3.7% over 20 years and close to 3.8% over 25 years. Exact terms vary considerably depending on the lender, the buyer’s income, the size of the down payment and the overall financial profile.
For buyers on the French Riviera, this matters more than in many other parts of France because loan amounts are often substantial.
A difference of just 0.2 or 0.3 percentage points on a €1 million mortgage can represent tens of thousands of euros over the full term of the loan.
There is, however, another side to the story: strong borrowers are still able to negotiate significantly better conditions than standard bank rates.
At the beginning of October, negotiated 20-year rates were around 3.44%, compared with bank tariffs of roughly 3.67% before negotiation. On 25 years, negotiated rates were around 3.59%, versus approximately 3.88% before negotiation.
Buyers should therefore avoid limiting themselves to an offer from a single bank.
For buyers with strong income, good liquidity and a substantial down payment, comparing several banks can still make a meaningful difference.
Will higher interest rates push down French Riviera property prices?
So far, there is no evidence of a general market decline.
As of 1 October 2026, estimated average apartment prices were approximately:
- €5,245/m² in Nice;
- €6,106/m² in Cannes;
- €6,488/m² in Antibes.
These figures should not be read too literally.
In Cannes, for example, the city-wide average is only slightly above €6,000/m², while estimated values on the Croisette are already around €11,700/m². In Antibes, prime addresses on Cap d’Antibes also trade far above the city average.
This is why talking about a single “French Riviera property price” is increasingly misleading.
Two villas with the same living area can differ enormously in value depending on sea view, plot size, privacy, condition, quality of renovation, access, garage space and exact address.
Higher borrowing costs are having the strongest impact on the more conventional market, where buyers rely heavily on mortgage financing and have several comparable alternatives.
The prime and ultra-prime market is different. Buyers considering high-quality property in Cannes Californie, Cap d’Antibes, Saint-Jean-Cap-Ferrat or close to Monaco are far more likely to use significant cash resources or private banking solutions.
For genuinely rare properties, the mortgage rate is therefore often not the main factor driving the decision.
France is preparing changes to the LMNP furnished-rental regime
Another important issue this October concerns LMNP — location meublée non professionnelle.
This regime is widely used by owners of furnished investment properties in France because under the current régime réel it generally allows depreciation to be taken into account when calculating taxable rental income, subject to the applicable rules.
The 2027 French budget proposal seeks to limit this benefit to 2.5% of the relevant asset value, with a maximum annual deduction of €7,000 per tax household.
If this measure is adopted in its original form, the tax efficiency of some furnished rental investments could be reduced significantly.
This is particularly relevant for properties where substantial depreciation currently allows owners to reduce taxable rental profits considerably.
However, it is important not to jump to conclusions.
This is still part of the 2027 Finance Bill, not final legislation. The rules may change during the parliamentary process.
For investors currently considering a furnished rental apartment in Nice, Cannes or Antibes, the most sensible approach is to model several tax scenarios rather than relying entirely on the current LMNP framework.
Monaco wants greater transparency from foreign property owners
A separate issue concerns legislative proposal no. 276 in Monaco and foreign legal entities that own real estate in the Principality.
Its main objective is to make these ownership structures more transparent.
The proposal would require greater disclosure of the ultimate beneficial owners behind foreign companies holding property in Monaco. It also includes a mechanism under which certain foreign legal entities could transfer their legal domicile to Monaco while preserving their legal personality.
The most striking provision is a potential annual levy equal to 1% of the market value of the property held by a foreign legal entity.
However, there is an essential qualification.
The proposal provides exemptions, including for foreign legal entities that declare their ultimate beneficial owners annually.
In other words, this is not simply a proposal to impose an unconditional 1% annual tax on all foreign companies owning property in Monaco. Its main purpose is to encourage transparency of ownership.
For a €20 million property, 1% would represent €200,000 per year. That means the disclosure requirements could have very significant financial consequences for owners using foreign companies, family holding structures or other international vehicles.
At the same time, it would be incorrect to say that Monaco has already introduced a 1% tax.
Proposal no. 276 has been adopted by the Conseil National, but it is not yet in force as law.
For current owners, the sensible response is therefore to review existing ownership structures with a Monaco notary or tax adviser rather than make immediate structural changes.
What is happening in the rental market?
The long-term rental market on the French Riviera remains relatively resilient.
At the beginning of October, estimated apartment rents were approximately:
- €20.9/m² per month in Nice;
- €19.5/m² in Cannes;
- €19.5/m² in Antibes.
For investors, this creates an interesting situation.
If acquisition prices can be negotiated while rents remain broadly stable, headline rental yields improve.
But with borrowing costs now significantly higher, financed investors need to look beyond gross yield and consider mortgage interest, condominium charges, property tax, management costs, maintenance, vacancy and taxation.
This means the same apartment may still be an attractive investment for a cash buyer while looking much less compelling for someone financing 70% or 80% of the purchase price.
The market is becoming more demanding, not simply cheaper
That is probably the most important change in autumn 2026.
Buyers are paying much closer attention to both price and quality.
Higher mortgage rates give financed buyers more reason to negotiate. Potential LMNP tax changes are forcing investors to examine net returns more carefully. In Monaco, increasing transparency requirements mean that ownership structures and source-of-funds documentation are becoming an even more important part of the transaction.
But none of this currently points to a broad collapse in French Riviera property prices.
The Côte d’Azur continues to suffer from a shortage of genuinely high-quality property: villas with panoramic sea views, good plots and privacy, seafront apartments, large terraces, penthouses and homes in the most sought-after residences.
These assets do not become mass-market products simply because mortgage rates move by a few tenths of a percentage point.
More standard properties, however, face a different reality and require much more accurate pricing when buyers have numerous comparable alternatives.
For sellers, that means realistic valuation.
For buyers, it means more negotiating opportunities.
And for investors, it means looking beyond today’s rental yield and taking into account a changing financial and tax environment.
