Cannes : the Croisette and La Californie
The first is indisputably the most highly-prized address among fans of apartments, whilst the second, a leafy hillside overlooking the Bay of Cannes, offers a mixed bag of accommodation, popular among both French and foreign buyers looking for second residences.
Famous in all four corners of the world thanks to the International Film Festival, the Croisette runs along the Bay of Cannes and its sandy beaches, providing pedestrians with a wide promenade dedicated to leisurely walks. Luxury boutiques and renowned hotels, including the Majestic-Barrière, Carlton and Martinez, share the top of the bill with the lively town centre just to the rear. A natural setting and plunging views are the main arguments put forward by La Californie. Officially defined by Avenue du Roi-Albert, the Boulevards des Pharaons, Saint-Michel and Maréchal-Koenig, this neighbourhood is shared out equally between prestigious apartment buildings and sturdy villas, reminders for some of the various architectural influences of the “Belle Epoque”. The Château de Thorenc and Château Louis XIII, the Fiorentina, Rothschild and Saint-Priest villas all stand out clearly from the scenery. 70 % of these properties are only occupied by their international owners during the holidays.
Jean-Christophe Hym of the Europa agency describes three levels of activity in Cannes. The lowest end of the scale - ie. up to 400,000 € for an apartment and 1.5 million euros for a villa - is doing slightly better, up to a point, than that particular category elsewhere in France. The upper category, topping out respectively at 5 and 10 million euros, is experiencing more tension. On the other hand, properties considered as unique get a warm welcome from Russian clients and, to a lesser extent, Indians, South-Africans and a few rare Chinese. Except for a handful of houses, the Boulevard de La Croisette is essentially comprised of apartment residences. On average, the sq. metre is pegged at around 25,000 € between the Palais des Festivals and the Carlton, a stretch close to the centre and facing south, whereas Palm Beach, slightly further out and facing west, posts an average price of 20,000 €/m2. The new development “Le 7 Croisette” is close on 33,000 €/m2, with a few spikes for generous surface areas. Eighteen months ago, a duplex of over 500 m2 undergoing a revamp changed hands at 18 million euros. Residences in La Californie are affected by difficulties mentioned above. In one example with gardens, a swimming pool and views of the deep blue sea, apartments in good condition cost 15,000 €/m2, those which need freshening up 12,000 €/m2. Stocks are plentiful, and this type of apartment subjected to fierce competition. Conversely, the market for penthouses is as buoyant as ever. Individual houses also inspire real enthusiasm as long as they can offer refined appointments. The rarity factor becomes more evident when the client proves to be demanding in terms of quality. By way of example, a Russian buyer with a budget of 20-30 million euros is searching in vain for a property of at least 700 m2. Another client, willing to take on massive renovation, is forking out 20-25 million euros for a 1980’s residence of 1,400 m2 on the very edge of the neighbourhood.
“La Californie and the Croisette are among the most sought-after addresses in Cannes. This constant demand ensures price stability,” says Jörg Buchen of Engel & Völkers. On the Croisette, the search is two-tiered : some buyers want surface areas ranging from 60 to 100 m2, priced from 1.5 to 2.8 million euros ; others are targetting “exceptional” properties. This distinction also applies to La Californie. Apartments from 80 to 140 m2 fetch from 1.2 to 2 million euros. A few penthouses, facing the Lérins Islands and Estérel hills, attain 4.5 million euros, while so-called “exclusive” villas require budgets between 5 and 8 million euros.
Sandrine Lassouag of Magrey & Sons orchestated four sales on the Croisette in 2011. The buyers, all French, set their sights on renovated 2-bedroom apartments from 70 to 100 m2. Fans of top floors - of at least 200 m2 - come from Northern and Eastern Europe, sometimes from Italy. Clients from the Middle East are more inclined towards older apartments. According to the contracts signed, it appears that prices range from 25,000 to 30,000 €/m2, and from 40,000 to 50,000 € in the case of penthouses. In the same year, Sandrine Lassouag mentions three transactions concerning apartments in La Californie, ranging from 10,000 to 18,000 €/m2. The clientele, just like the selection criteria, bear comparison with those on the Croisette. Château Montjoli, Champfleuri, Saint-Michel-Valetta and Le Mariposa are everyone’s favourites. While all four benefit from plunging views of the Med, parks and swimming pools, the last two, more intimate, are a length ahead. A penthouse of 200-250 m2 is priced here from 20,000 to 30,000 €/m2. Behind each acquisition, there is the underlying notion of investment, and therefore location. “The 2011 Wealth Report published by Knight Frank and Citi Private Bank shows that Cannes ranks 7th on the world market, on the basis of average prices. La Californie and the Croisette contribute significantly to the town’s high rating.” The change in capital gains legislation is making the search for available properties even more arduous. And prices could well rise as a result of this scarcity. Meanwhile, Alexandre Goldstein of Magrey & Sons is handling the sale of four villas priced from 2 to 8 million euros on this residential hillside on the east side of Cannes. The lower price corresponds to 180 m2 in need of refurbishment, in grounds of 1,100 m2 overlooking the Bay of Cannes, the high end to a “bastide” of 600 m2 awaiting restoration in grounds of 6,000 m2. Some clients, from Eastern Europe or the Benelux countries, insist on perfect properties, contemporary appointments, even turnkey solutions. Others, from within the region and highly knowledgeable about the market, are looking for properties to restore. “For both of these neighbourhoods,” concludes Alexandre Goldstein, “2011 was a satisfactory vintage, and 2012 has made a good start”.
By Laetitia Rossi
