Since January 20, Virgil has established itself in Nice. Its promise is to co-invest alongside young professionals to strengthen the budget and solidity of a portfolio.
Nice is the second most expensive city in France after Paris, with real estate prices having increased by 37% over 10 years. Given this phenomenon, a significant challenge has arisen: balancing the region’s dynamism and accessibility for locals. To address this need, Virgil has entered the Nice market.
Active since 2020 and present in several cities such as Paris and Marseille, Virgil invests up to 100,000 euros per portfolio. In exchange, the company holds part of the property until it is sold or the owner repurchases the company’s share within a 10-year period. Saskia Fiziel, co-founder of Virgil, talks about her project, which aims to revolutionize the real estate market.
Can you explain what Virgil is all about?
Virgil is a real estate financing company that enables young professionals to become homeowners despite insufficient budgets through short-term investments. Virgil invests up to 100,000 € to fill the missing deposit, allowing young professionals to buy their homes. On average, we invest 10% of the property’s value, and we are compensated with 15% of the property. The buyer can repurchase our share at any time or sell the apartment within a maximum of 10 years.
How did the idea to create Virgil come about? Where does the concept originate from?
Today, access to housing is a major concern for young professionals, with 96% of them not owning property due to financial reasons. The family contribution is often the main obstacle to homeownership for employees aged 25 to 35. That’s why we created Virgil, to supplement and enable young professionals to access ownership.
In your opinion, what was the main injustice or flaw in the French real estate market that Virgil needed to address?
The market has grown tremendously in recent years. There has been a significant increase in prices, but salary growth has not kept pace. A young household’s purchasing power is now 25% lower than it was in 2000 or 1960. Nowadays, couples aspiring to have one or two children often give up on becoming homeowners due to housing difficulties. Banks now require a 10 to 20% down payment for financing real estate projects.
In a context of sharply rising prices, an apartment can cost 400,000 €, which is extremely difficult to gather for young professionals starting their careers and paying rent, unless they have parental help. Therefore, access to homeownership becomes unequal, favoring those whose parents can support them financially, which raises concerns about meritocracy.
Why did you choose Nice as a new location, and why is this market strategic for Virgil?
Nice has many assets that make it one of the most highly ranked and attractive French cities. Its quality of life and foreign investments make it the second most expensive city after Paris. The growth of real estate prices in Nice has been 37% over 10 years. Locals need to build their financial independence to find housing. High prices should not prevent them from becoming homeowners. On this basis, we launched Virgil in Nice.
The housing issue is often raised during municipal elections; do you think you can play a role during the campaign?
Absolutely, and we see it on both a national and local scale. The housing issue has long been neglected and is now resurfacing as a social bomb. People are frustrated when they hear about the economy and demographic recovery while they struggle to find housing. Whether at a local or national level, the housing issue has become crucial.
According to your analysis, which neighborhoods in Nice today have the most tension for young professionals?
The neighborhoods most frequently targeted by first-time buyers (i.e., households purchasing a home for the first time as their primary residence) are Libération, Saint Roch, Riquier, Pasteur, Thiers. We see many people moving from the center to the outskirts, like Cagnes-sur-Mer, Saint-Laurent-du-Var, or the surrounding areas.
What is the average amount of the contribution you add to portfolios in Nice?
The average contribution based on our history is 40,000 euros. We can invest from 6,000 euros up to 20,000 euros in projects depending on their size and needs.
What is the success rate of purchase offers with Virgil in Nice compared to a traditional portfolio?
We are still at the very beginning, but historically, it reaches 96% except in particular cases. This is why our partners are happy to work with us, and buyers trust us with their portfolios.
Have you already formed partnerships with real estate agencies, banks, or notaries in the Nice region?
Yes, we work notably with CECAZ, we form partnerships with brokerage firms with which we operate intelligently, or for portfolios that lack financing and aim a bit higher, we form partnerships with those actors; we are in full discussion, meeting them, we met with abé courtage.
What challenges have you encountered in setting up in Nice?
As always, when we enter a new market, there are regional specificities. We need to recreate an entire network with new partners and relationships to understand the local housing reality. Some partners we are used to working with are not necessarily present in the region.
