Why invest in the Var? Analysis of local markets in 2025
Real estate in the Var is attracting increasing interest from investors, and not by chance. With its exceptional living environment, market stabilization and profitability prospects, the year 2025 promises to be a strategic one in which to set down roots (or capital) in this southern French department.
Here’s a clear, concrete analysis of the Var real estate market, to help you make the right choices.
1. A favorable real estate environment (at last)
Good news for buyers and investors: after a decline in prices between 2023 and 2024 (-4% to -6% depending on the area), the Var real estate market returned to a form of stability in 2025. Transactions are on the rise again, especially along the coast.
There are three reasons why this period is particularly interesting:
- Greater bargaining power: Less competition, more open-minded sellers, and properties requiring work can be discounted by up to 10%.
- Lower interest rates: at around 3%, the cost of borrowing is more affordable. This translates into a +8.5% gain in real estate purchasing power in one year.
- Window of opportunity: Price stabilization + sales recovery = ideal timing to invest before a potential gradual upturn.
2. A region driven by powerful forces
In addition to its climate and landscapes, the Var has a number of structural assets that support real estate demand:
- A diversified economy: The Var doesn’t just depend on tourism. Agriculture, industry, logistics and innovation are also well represented.
- A dynamic urban fabric: ports, airports, universities… Infrastructure facilitates mobility and attracts businesses and workers.
- Massive tourism: 83 million overnight stays by 2024. This clearly supports demand for short-term rentals.
- A stable, varied population: students, young professionals, families, retirees… A diversity of profiles that generates balanced rental demand.
3. Focus on micro-markets in the Var in 2025
Each Var zone has its own dynamics. Here are the main trends for 2025:
Gulf of Saint-Tropez
- Average price: €16,794/m² (St-Tropez)
- Trend: Dynamic, selective market
- Opportunities: Properties for renovation, strong international demand
Fréjus / Saint-Raphaël
- Average price: €4,866/sq.m
- Trend: Slight downturn in prices, but upturn in rental demand
- Opportunities: First-time buyers, long-term leasing
Toulon
- Average price: €3,389/sq.m
- Trend: Moderate growth (+2.2%)
- Opportunities: Central districts, high rental profitability
Var hinterland
- Average price: ~€2,108/sq.m
- Trend: Local market, attractive prices
- Opportunities: Primary residence on a moderate budget
Bormes-les-Mimosas / Sainte-Maxime
- Average price: €6,547/sq.m
- Trend: 3%/year increase
- Opportunities: Second home, asset enhancement
4. Profitability: maximizing your investment
- Rental yield: Certain areas such as Toulon, Fréjus or the hinterland offer good rates of return, particularly for long-term or seasonal rentals.
- Beware of old, energy-hungry properties: Since 2025, G-rated properties have been forbidden to rent. This means you need to budget for renovating older properties.
5. Vigilance before investing
Not everything is rosy:
- Overvalued properties: Some sellers have not yet adapted their post-2022 prices.
- Natural hazards: floods, fires… Always consult the Risk Prevention Plan (PPR).
- Contrasting markets: local support is strongly recommended to avoid unpleasant surprises and identify the right investments.
In a nutshell
The Var ticks a number of boxes for real estate investment in 2025: stabilized market, affordable credit rates, dynamic tourism and economy, potential profitability and diversity of micro-markets.
With a detailed analysis of the area and local support, the opportunities are real, especially for responsive investors.
FAQ
➡️ What’s the most profitable sector in the Var?
Toulon and certain inland towns currently offer the best ratios between purchase price and rental income. Their rental appeal, combined with still-affordable prices, means that gross yields of around 5-7% can be expected, or even higher for well-managed seasonal rentals.
➡️ Is it still possible to negotiate prices in the Var?
Absolutely. The market remains relatively calm in many areas, particularly off the coast. Sellers are more willing to negotiate, especially on properties requiring renovation or that have been on the market for a long time. Price reductions of 5 to 10% are regularly observed.
➡️ Which cities should you target for your first rental purchase?
Fréjus, Toulon and certain towns in the Var hinterland (such as Draguignan and Brignoles) combine affordable prices, good rental demand and value-added potential. These towns are ideal for first-time investors looking for stable returns without a large initial outlay.
➡️ What are the main risks?
In addition to natural risks (flooding, forest fires, especially in summer), investors should be careful not to buy a property that is overpriced or has an F or G energy rating. The latter are no longer rentable without renovation. Last but not least, the disparity between markets in different areas requires a thorough knowledge of the sector in question.
