Athena Insight CORSICA. Real Estate Market Update. July - August 2017

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1 Athena Insight CORSICA Real Estate Market Update July - August 2017

2 Why invest in Corsica? Mix of landscapes Known as the Island of Beauty, Corsica offers an unusual natural heritage consisting of stunning white sandy beaches, turquoise water, isolated coves, protected nature reserves covering more than a third of the island, and small mountain villages whose summits culminate at more than 2,700 meters of altitude. Privileged location A true mountain in the sea offering a total change of scenery in the middle of the Mediterranean and only 1h30 from Paris by plane, the Island of Beauty offers magnificent properties in a calm environment and at much more advantageous prices than on the Côte d Azur. On the Up Corsica is increasingly popular with investors. This growing popularity is due in particular to the opening up of new road and air transport links, but also to the new regulations aimed at protecting the coast, which make the opportunities to acquire a new property on the coast more and more rare and interesting. High rental opportunities In addition, the island of Napoleon s birth offers extremely high rental yields, the result of a thoroughly developed seasonal tourism. Investing in a second home in Corsica is a real privilege. It is a real miniature continent, an island with rich traditions and landscapes. The sun has made so much love to the sea that they ended up giving birth to Corsica Antoine de Saint-Exupéry

3 A prestigious destination in full swing A unique natural heritage Corsica, the least densely populated island in the Mediterranean, seduces visitors with its authentic landscapes such as those of Cape Corsica, the Monte Cinto summit or the Lavezzi Islands. A tourist region with more than 1000 km of coastline, including 800 beaches, the island has preserved its traditional and wild character, distinguishing itself from the glamour and glitz of the Côte d Azur. Stripped of all industry, Corsica invests massively in the protection of its environment: 40% of the insular territory is composed of French heritage sites and natural reserves. Hot and sunny climate Many summer festivals and traditional events Rich historical heritage GR20, the most famous hiking trail in Europe Great quality food Very low crime rate A dynamic island in full development A dynamic region in France, Corsica already has 7 ports and 4 international airports (Ajaccio, Bastia, Sainte Catherine and Figari) and continues its opening by renewing its transport network. A new subway line planned for 2019 and offering daily connections between the Island of Beauty and the Mediterranean axis (Pisa, Genoa, Rome, Palma or Barcelona), at reasonable prices, is expected to create new economic and tourist flows, develop the island s activities and improve cultural exchanges. By 2026, Corsica plans to unlock more than 1 billion euros in roads, ports, airports and railways, in order to put an end to the isolation and problems of travel on the island. Corsica Ferries has just inaugurated the 13th and largest ship of its fleet with the aim of transporting 4 million passengers by billion invested in roads

4 A dynamic real estate market Market trends Despite the growing popularity of the island, Corsican property prices remain on average 20% to 40% cheaper than on the Côte d Azur. Since 2015, the real estate market is on the rise again: the vast majority of French and international investors want to buy properties with sea views, thus increasing the construction of new buildings by 25% in one year. To meet this high demand, new regulations to protect the Corsican coastline have been voted in for 2018 in order to preserve the island s purity and wild landscape. Therefore, the opportunities to acquire a new property on the coast will become scarce, thereby offering good opportunities for surplus value over the next few years. Corsican property prices remain on average 20% to 40% cheaper than on the Côte d Azur. Generally between 4,000 and 5,000 / sqm for a new property in Corsica, the prices rapidly increase

5 Where to invest? The most sought-after properties are mainly concentrated in the extreme south of the island and increasingly on the eastern plain, where the surrounding nature is wild and authentic. The south shore of Ajaccio also offers great opportunities in the small villages of Pietrosella and Albitreccia, which enjoy beautiful beaches and magnificent views of the bay while remaining close to Ajaccio airport. Balagne Region Authentic scenery and historic villages like Calvi Ajaccio Basin Close to transport and amenities, magnificent views and white sandy beaches Bonifacio Protected seaside industrial resort Porto-Vecchio Very popular high-end resort, Saint-Tropez of Corsica. The eastern plain on this coastline is an increasingly popular area with natural landscapes. Popular investment areas Natural park

6 A very profitable investment The most dynamic tourism Each year more than 3 million tourists visit the Island of Beauty between May and September alone. Corsica is a favourite holiday destination for the French, and also welcomes many foreigners looking for the cultural and natural riches that the region has to offer. Rental yields during the peak season are therefore very advantageous, especially since the number of tourists is increasing every year and the improvement of transport promises to further increase this influx. This attraction, coupled with the lack of rental supply in new homes, offers double security to owners wishing to rent their property, who can expect an average of 3.5% rental yields. With 80% or Airbnb rentals occupied in August 2016, it s a strong indicator of the rental profitability in Corsica. 3 millions tourists each year Tax and interest rates 8% VAT applied in this region Investing in Corsica will also allow owners to benefit from very low interest rates: depending on your financial situation, you can expect up to 0.85% fixed rate over 10 years. Rental investment is very profitable since you can benefit from large tax reductions (up to 21%) by renting out your newly-bought home. This system makes acquiring a property profitable, especially since the VAT applied in this region is only 8%. In addition, the Island of Beauty has other many advantages: lower gas tax, exemption from property tax on certain land, partial exemption from inheritance tax and reduced VAT on a large number of products.

7 Buying new property along Corsica s coast represents not only an increasingly rare opportunity with a potential for added value, but also a very profitable investment. This small Mediterranean island offers a multitude of preserved and wild landscapes and meets the demands of French and international investors who, once adapted to life on this island, cannot do without them.

8 Athena Advisers Established in 2003 and today led by three partners, Athena Advisers is an international sales network and property investment advisory that specialises in attracting new-build and renovation development projects in key prime markets. From alpine chalets to sleek town houses, beach houses and everything in between in France, London, Lisbon, Barcelona and soon other destinations, we handpick our product portfolio very carefully, considering profitability but also lifestyle appeal. With multiples consultants on the ground in every destination, we are both an advisory and a concierge specialising in property and lifestyles, simplifying access to property investments and providing local insights. 45 Holmead Road, London SW6 2JD +44 (0) info@athenaadvisors.com athenaadvisers.com