Corsica, the French island in the Mediterranean, is experiencing a surge in real estate demand, fueled by both tourism and a growing number of second-home buyers. This influx is reshaping the island’s property market, driving up prices and prompting local authorities to consider measures to protect housing availability for residents.
Rising Demand and Shifting Market Dynamics
The Corsican property market has been on an upward trajectory, attracting buyers from across Europe and increasingly, from the United States. The island’s appeal lies in its diverse landscapes – ranging from pristine beaches like Palombaggia to rugged mountains and dramatic cliffs – coupled with a unique cultural blend of French and Italian influences. This combination offers a lifestyle that is proving increasingly attractive to those seeking a tranquil retreat or investment opportunity.
According to recent analysis, the growth in tourism is a key driver of demand, particularly for holiday homes and rental properties. Improved transport links to mainland France and Europe have made Corsica more accessible, further boosting its appeal. A notable trend is the increasing demand for luxury properties, especially waterfront villas in sought-after locations like Porto-Vecchio and Calvi. However, the market isn’t solely focused on high-end investments. coastal and village homes continue to represent a stable option for families and retirees.
Property Values and Key Locations
Property prices vary significantly across the island. Ajaccio, the capital, offers a mix of historical charm and modern amenities, with prices ranging from €2,500 to €5,000 per square meter. Porto-Vecchio, known for its luxury villas and proximity to iconic beaches, commands higher prices, while Bonifacio, with its medieval architecture and clifftop views, also features exclusive, premium-priced waterfront properties. More affordable options can be found in inland towns like Corte, appealing to those seeking a quieter lifestyle.
The increasing demand from second-home buyers is having a tangible impact on property values. Data from 2019 indicates a clear correlation between the rise in second-home purchases and increased home values across the island. This trend has continued, with the luxury real estate market becoming particularly competitive.
Local Concerns and Regulatory Responses
The growing popularity of Corsica as a second-home destination is not without its challenges. A significant proportion of properties are already designated as second homes or multi-occupancy residences, raising concerns about housing affordability for local residents. This has prompted a response from municipal authorities across France, including Corsica, who are now empowered by new planning laws to restrict the construction of new second homes.
The village of Cancale in Brittany has already implemented a ban on building second homes and similar proposals are being considered in Saint-Malo. In Corsica, the situation is particularly acute in popular tourist areas. The municipality of Chamonix, while not on Corsica, serves as an example of the growing trend, having implemented a ban on new second homes earlier in 2025, reserving remaining building land for primary residences. Other towns in Haute-Savoie, including Les Houches, Servoz, and Vallorcine, have followed suit.
The new regulations, implemented through revisions to local urban planning blueprints (PLU), aim to regulate land use and building density to ensure sustainable growth and protect housing availability for local populations. In Cancale, the ban applies to the rebuilding of demolished homes and the development of gardens for new construction. Local officials emphasize that the policy is driven by the needs of residents.
Broader Trends in Second-Home Markets
Corsica’s experience reflects a broader trend of increasing demand for second homes in desirable locations globally. Americans, in particular, are increasingly looking to overseas markets for second-home investments. This demand is driven by factors such as remote work opportunities and a desire for lifestyle changes. However, this trend is also contributing to housing affordability challenges in many popular destinations.
The rise in second-home ownership is not solely a matter of individual investment decisions. It has broader economic implications, impacting local economies, infrastructure, and social dynamics. The balance between attracting tourism and ensuring housing availability for residents is a critical challenge for many communities, and Corsica is at the forefront of addressing this issue through innovative regulatory measures.
As of December 12, 2025, French towns are actively utilizing new planning laws to curb the proliferation of second homes, signaling a growing awareness of the need to prioritize housing for local communities amidst increasing external demand. The Corsican property market, while attractive to investors, is now navigating a complex landscape shaped by both economic opportunity and social responsibility.
