Seasonal rentals on the Côte d’Azur
With summer lurking on the horizon, the Côte d’Azur begins to beckon the wealthy from all four corners of the world. While Cap Ferrat and Saint-Tropez seem to be all the fashion, Cannes and Mougins, Cap d’Antibes, Cap d’Ail and Cap Martin are all gearing up for a promising season.
Out of 139 countries in a survey completed by Booz & Company, France takes 3rd place in the tourism rankings based on criteria as diverse as healthcare, hygiene, safety, the quality of infrastructures, prices, cultural activities, protection of the environment etc. From Provençal or Alpine scenery to the Mediterranean beaches, the Côte d’Azur is an undeniable magnet. According to the Regional Tourist Board, the destination (including Monaco) brings 10.3 million visitors every year. On average, they spend 6.5 nights in the region. Depending on the period, 60,000 to 600,000 tourists per day discover or re-discover the Côte d’Azur, these extremes being recorded in mid-December and on August 15th. The 50 % of foreign visitors are comprised 21 % of Britons, 21 % Italians, 8 % Germans, 8 % Americans and 6 % East Europeans. For over a century, this sector of activity has been “a strong driver of demographic and economic development”, making the French Riviera a global reference. 20 % arrive for the first time, drawn by its image and reputation. The Alpes-Maritimes propose 154,000 beds, 40 % in hotel establishments. With its 732 hotels, the region ranks second at national level. A fact which should be credited to the dynamism of the airport, catering for many low-cost airlines covering all of Europe. The Paris-Nice connection alone accounts for 3.2 million passengers. Antibes is the largest yacht harbour. Cruises are doing well, generating an influx of close on 1 million visitors. Decidedly, for high-end seasonal rentals, an area clearly headed towards a focus on services, the indicators are all green for go.
“The eastern part of the Alpes-Maritimes is predominated by Cap Ferrat, a peninsula with luxuriant vegetation lapped by the Mediterranean, close to both the very select Principality of Monaco and the Nice Côte d’Azur International Airport,” says Lydia Laurent of the John Taylor agency. And there is the same enthusiasm for Cap d’Ail, Cap Martin, Beaulieu and Villefranche-sur-Mer, whose prices, for equivalent properties,can be up to 20 % lower. Potential tenants - mainly from eastern Europe, but also America and emerging nations such as China and India, ready to spend from 100,000 to 300,000 €/month in summer -, require at least five suites, flat grounds, contemporary decor, a view of the sea and a location within walking distance of the beach. Seafront properties, usually from 500 to 600 m2, range from 250,000 to 300,000 €/month. All these clients consider services as a priority : indoor and outdoor maintenance, laundry and cooking are virtually systematic. Professionals thus need to ensure daily attention as demanding as that provided by conciergeries in palatial hotels. A good third of the clientele returns each year, to the same property. Overall, the rate of occupancy is almost 70 % ; Cap Ferrat, the most expensive, tops the list. Generally speaking, reservations are finalized in March/April, even May. For the owners, renting out their properties now seems like a normal procedure, especially as the risks, starting with degradation, are provided for in the contract. Finally, Lydia Laurent has noticed more requests for furnished accommodation for a 1-year period, often the first step towards buying a home. A 5-bedroom villa opening out to the Mediterranean would then cost 20,000-40,000 €/month on Cap Ferrat, while an apartment of about 150 m2 in a residence with park and swimming pool on Cap d’Ail would be priced at around 10,000 €/month.
“Except for a few one-off evenings during the Cannes Film Festival, Cap d’Antibes sees most of its activity in the high season. With 4 to 12 bedrooms, villas rent from 25,000 to 300,000 € per month, with most leases in a broad 60,000 to 200,000 € bracket,” says Jacqueline Swaep of John Taylor. 70 % of the interested parties are from Eastern Europe, aged 30-40 and highly sensitive to the calling card that accompanies this spot of international renown. The remaining 30 % are mostly French and English clients. Price disparities between Cap Ferrat and Cap d’Antibes can be explained by the very nature of the properties on offer, much more varied for the second, thus giving a wide spectrum of prices and tenant profiles. In 2011, 80 to 90 % of availabilities were occupied. At the beginning of February, 20 % were already booked for 2012 and 20 % were reserved on the basis of a verbal agreement. Fans of Cap d’Antibes want to be close to spots where they can swim, Juan-les-Pins and the Hôtel du Cap, whose private beach and restaurant are highly appreciated. The length of stays seems to be on the rise, with some clients spending two to three months in all. Thanks to the quality of the airport’s amenities, the head of the family tends to make more and more business trips back and forth. In Cannes, while the crisis hasn’t been felt in terms of summertime occupancy, rentals deriving from congresses are restricted to the very select micro-market of the Croisette. Villas and neighbourhoods further out, such as La Californie, draw less interest than in the past for corporate rentals, whether for the MIPIM or Film Festival, whereas the most modest studio or 1 bedroom apartment in the Palm Beach neighbourhood is snapped up at 10,000 € per fortnight in May, and an apartment of 150-300 m2, facing the Palais des Festivals with a terrace large enough for cocktail parties and interviews, may attain 100,000 €. On the other hand, enquiries for July and August in Cannes begin to come in as of January. Villas range from 30,000 to 200,000 €, posting pretty much the same prices, for identical amenities, as Cap d’Antibes. Mougins, with a shorter season, is popular among Anglo-Saxons who pay 20,000 to 100,000 €/month. In terms of occupancy, this countrified suburb of Cannes is a good notch lower. It is much easier here, for example, to rent on a fortnightly basis.
“Saint-Tropez has two categories of clients, often with opposing aspirations”, comments Danielle Paban of Beauchamp Estates. Families want easy access to the sea and a quiet, restful and well-preserved setting over towards Ramatuelle, Gassin or Grimaud, for which they pay 40,000 to 80,000 € per month. Not really keen on battling with the crowds, they are not likely to be seen every day on the Place des Lices or the port of Saint-Tropez. Others, aged from 25 to 55, immediately target the beaches of Pampelonne, with Club 55 and Nikki Beach as priorities. They like modern properties flaunting ostentatious luxury against a backcloth of azure blue. Often Russian, they meet up in the second half of July for evenings with friends and festive outings.
“A clear distinction should be made between clients fond of a quality life-style and quality accommodation, and those wanting to be in Saint-Tropez every day,” says Marie-Christine Cases of L’Immobilier à la Carte. The first are drawn by warm, hospitable living areas, high sleeping capacities and the practical nature of the gardens and pools. They invite family and friends, spend time together and take advantage of every single moment spent on this famous peninsula in the Var. Naturally, they have very definite ideas about the closeness of the beach and the services provided. In this context, a standard house with 4/5 bedrooms rents for 30,000 to 100,000 € per month. Seven or eight suites in Les Parcs de Saint-Tropez, or a residence as spacious and prestigious, but not an estate, range from 130,000 to 250,000 €. The second category of clients want to be within walking distance of the legendary village but come up against a scarcity of top-notch references. Overall, the quality of the properties on offer does not meet their expectations. There’s a severe lack of meticulous appointments and contemporary amenities in the 50,000-100,000 € bracket. Today, there are more properties on the rental market. The element of competition should perhaps get owners to react by up-grading their offerings.
By Laetitia Rossi
