Seasonal Rentals
The Côte d’Azur still has some plain sailing in store !…
We often hear of more exotic and less expensive rivals but, on the basis of the results attained last year, the Côte d’Azur still has some plain sailing in store !…
“The tragic events of September 11th 2001 had a real impact on the prestige home rental market,” says Angélique Le Guelvout of European Villas International. “Like scores chalked up in the hotel sector, the occupancy rate for houses situated between Villefranche-sur-Mer and Cap Martin dropped by 25 to 30 % in the following years. The British, who account for 60 % of summer tenants, also arrived in fewer numbers after the American clientele deserted the South of France. Prices fell by 15 to 20 %. Intensification of Russian interest soon, however, put a different light on the situation. In the last two seasons, there has even been a pick-up in starting prices for high-class villas and really exclusive properties. The number of English-speaking clients has reverted to its previous level due to a rise in the numbers of English, Scottish and Irish visit-ors. The Russians go for the most prestigious properties and appreciate immediate proximity to the sea. And Americans are returning to the Côte d’Azur.”
“We rent these properties much later than before,” comments Judith Davis of Burger Davis Sotheby’s International Realty. “In the past, most bookings were made in January, today peak negotiation time is in March.” According to Judith, some reservations were concluded last year as late as June for occupancy in July or August. Tenants are more interested in “all inclusive” rentals rather than those offering services billed as extras. And recurrent behaviour patterns can be identified according to nationality. Americans want services usually provided by a concierge in a palatial hotel. Middle Eastern clients opt for large villas or penthouses on the Croisette and arrive with their own personnel. With their passion for all things French, the English show real independence during their stays. As for the Russians, they simply can’t resist the cocktail of “a seafront address and a party atmosphere”.
Alain Rodriguez of the Rodriguez Real Estate agency considers the effect of September 11th as a temporary phenomenon for the exceptional property sector. After all, in 2005, large properties were all taken in the area stretching from Villefranche-sur-Mer to Roquebrune-Cap-Martin. Agencies here have already confirmed bookings for the coming season. Another change, structural this time, is that stays are shorter. As they get younger, clients, now in the 40 to 60 year-old age-bracket, have less time for leisure as they are still professionally active and much more mobile.
“In the old days, they would come to stay for one to two months. Now they make do with a couple of weeks,” confirms Angélique Le Guelvout. Seasonal rentals on the Côte d’Azur thus falter at times of crisis, but the market always survives. A survey of prices proves the point. One simply has to split the region in two, the east and west parts of the Alpes-Maritimes, and focus on highly specific micro-markets.
“In the area between Nice and the Italian border, Cap Ferrat tops the bill,” says Angélique Le Guelvout, “with a starting price in summer of 30,000 € per month (three bedrooms but no view), an average ranging from 55,000 to 70,000 € (four/five bedrooms and a pool), and top prices exceeding 250,000 € (several houses in level grounds on the seafront). The Russians and English share this sector. The properties available were 80 % full in July and August 2005, compared with 60 % in the mid-season”. Alain Rodriguez adds that, for really top-class properties (200,000 to 300,000 € per month), the occupancy rate is close on 100 %. Of the 500 villas on this, the most expensive cape in France, really large properties represent only 10 % of the total, and then only 15 % of them are available for rent. In addition, new owners carry out extensive refurbishments, during which the properties are taken off the market.
According to Angélique Le Guelvout, the Villefranche/Beaulieu-sur-Mer sector ranks second on the list. English and north-European clients appreciate these authentic little towns at the edge of the Med. A small family house, with or without view, will be priced at 25,000 € per month, while the average is 50,000 € and records attain 180,000 €. There is a particularly high rate of occupancy for middle-of-the-range villas. Cap Martin is a niche market, with only a few houses of recent construction offered for rent : it attracts Italians looking for family residences, and the Golf Bleu neighbourhood is popular for its easy access to the sea.
Close to Monaco, the lower part of Cap d’Ail is much in favour with a younger clientele. A desirable property will easily go for 70,000 € per month, though prices can rise to 120,000 €. Eze-sur-Mer posts slightly lower prices than Villefranche. In the part of Eze up on the hills, there’s a different type of market proposing 5 bedroomed villas with swimming pool and sea view for 25,000 to 30,000 € per month. And it’s worth noting that this entire eastern sector has finally benefitted from efforts to reinforce security measures.
“West of the capital of the Côte d’Azur,” says Judith Davis, “Cap d’Antibes is a real sirens’ song in summer. It thus posts prices 25 % higher than those of Cannes. The average is around 65,000 € per month with top-notch properties soaring to 180,000 €. This is the most highly sought-after address amongst Russian clients, due to the proximity of the sea and Juan-les-Pins. The occupancy rate is close on 100 % in July and August.”
In Cannes, distinctions are to be made between apartments and villas, and between the summer and festival or congress periods. In the high season, fans of apartments insist on staying on the Croisette, which fills up 60 %. Expect to pay 50,000 € per month for a 2 bedroomed apartment. Still in Cannes, La Californie is much more reasonable. Those who prefer villas invade the smart neighbourhoods with sea views, close to the centre. Prices range on average between 55,000 and 60,000 € per month, but can rise to 100,000 € and higher for really outstanding properties. The occupancy rate here attains 65 %. During congress weeks, Cannes may set new records. Three peak periods deserve a special mention, in ascending order : the MIPIM (real-estate fair) in March, the Festival of Advertising Films at the end of June, and the International Film Festival in May. During the MIPIM, a week on the Croisette costs 25,000 € on condition that the apartment offers a large terrace and at least three or four bedrooms. A small flat near the Martinez can be rented for 5,000 €. Apartments are occupied 100 % versus 80 % in the case of villas, which cost about the same as large apartments. Prices are the same during the Festival for Advertising Films, when occupancy attains 80 % for apartments, 60 % for villas. Posting occupancy rates of respectively 70 and 50 %, the International Film Festival lasts ten days, during which prices are double the weekly rate for the other two events.
Finally, the sector around Mougins, which proposes prices 25 % lower than Cannes, chalks up a 60 % occupancy rate in summer. Its European clientele (two-thirds English) is looking for easy access and traffic conditions, and wants to laze around with the family. In addition to summer vacationers, Mougins also accommodates “long-term” tenants who appreciate the closeness of international schools. Some stay for six to nine months while looking for a property to buy, others as long as two years in order to learn about the French life-style. Prices are 20 to 30 % lower in the mid-season as compared with summer rates, 50 % lower in the low season.
As regards owners of rented properties, Judith Davis distinguishes between two categories : 60 % have made investments for rental purposes and expect a high return ; 40 % own a holiday home and agree to rent it out in their absence (often during the months of July and August), an operation which enables them to cover their annual maintenance costs.
