The Cote d'Azur for rent
Every year we hear on TV that “The tourist industry is experiencing a slowdown”. Somewhat far-fetched, if you talk to professionals at the top end of the seasonal rentals sector. In summer, prestigious properties in Cannes, on Cap Ferrat and Cap d’Antibes are full...
Every year we hear on TV that “The tourist industry is experiencing a slowdown”. Somewhat far-fetched, if you talk to professionals at the top end of the seasonal rentals sector. In summer, prestigious properties in Cannes, on Cap Ferrat and Cap d’Antibes are full...
According to a study undertaken by the Riviera’s Tourism Observatory, the region “caters for 10 million stays1 per year” and no less than 60 million nights spent in tourist accommodation. In 2006, 52 % of the clientele were foreigners, from 150 different countries. Italians accounted for 20.6 %, the English and Irish 20.5 %, Germans 9.4 %, Americans 8.4 % and East Europeans, excluding Russians, 6 %. Over the past few years, Monaco, Nice and Cannes have also become international benchmarks for business tourism. 1.5 million visitors come to the Côte d’Azur for professional reasons.
Particularly active in this field, Cannes welcomes up to 2 million visitors a year and lays on 110 events with 500,000 participants. Jacqueline Swaep and Noëlle Santoni from the John Taylor agency place the MIPIM real-estate trade-fair at the top of the list in terms of its impact on the rental market. “In just two years, it has taken on colossal proportions, to the extent that the month of March has become a high-point on the calendar.” Apartments are henceforth more popular than villas, and tenants don’t want to be more than a 10-minute walk from the Palais des Festivals. Living accommodation is mainly rented between Le Suquet (the Old Town) and Boulevard Gazagnaire, offices are preferably on the Croisette. Further out, a medium-category, 2-bedroomed apartment can be rented for 3,500-5,500 € per week, 10,000 € on the famous seafront. Here, a 4-bedroomed apartment can easily attain 25,000 €. Houses near the town-centre fetch from 15,000 to 25,000 € per week. In the apartment sector, the occupancy rate is 100 %. Despite this success, agencies are finding it hard to get over the loss of the GSM congress, now held in Barcelona. The International Film Festival held in May overtakes the MIPIM in terms of prices, though not necessarily in occupancy of rented properties. The same 2-bedroomed flat will rent for 12-15,000 € for ten days on the Croisette, 8-10,000 € if it’s a little further out. Converted into an office, it will bring its owner 25-30,000 €. Villas are above all of interest to firms that organize evening events. Demand which is hard to meet now that the Palais Oriental and Palais Florentin have been sold. Compared with 2005 and 2006, the Advertising Festival in June 2007 posted a mixed result, still from the point of view of its effect on the rental market, with prices 20 % lower than those obtained during the MIPIM. MIPCOM follows in October, MIPTV in April and the Tax Free World Exhibition in November. Of more interest to hotels, Cannes’ International Yacht Show brings the season to its close.
“Once summer’s here, there’s a radical change in both clientele and criteria,” say Jacqueline Swaep and Noëlle Santoni. “English, American and Russian companies make way for private clients from Saudi Arabia, Russia, the Lebanon and Northern Europe.” The first two nationalities opt for the prestige of an address on the Croisette and immediate access to the beaches, or guarded residences with pools and tennis courts in the Californie neighbourhood. A 2-bedroomed apartment here costs 11-15,000 € per month, 15-20,000 € on the Croisette. For 40,000 €, you can play pasha in a 3-bedroomed penthouse. The other two nationalities prefer villas. Previously less sought-after, La Croix-des-Gardes still posted reasonable prices in 2006, from about 30,000 to 50,000 € per month. Today, disparities between neighbourhoods are less evident, with amenities justifying the differences in price. A house with 5 bedrooms in La Basse-Californie will be negotiated at 50,000 to 80,000 €. Record prices hit 200,000 € and imply top-level service, a pool and tennis court. Another change : Russians are making reservations for ever longer periods, extending to even five months. While Saint-Tropez and Saint-Jean-Cap-Ferrat still have devoted fans, Cannes is making every possible effort to counter the competition, both in its hospitality infrastructures and its rental accommodation, largely refreshed between 2005 and 2006.
Following an excellent year in 2007, Pascale Batteux of the Agence du Littoral is facing 2008 in all serenity. East Europeans, aged from 30 to 40, now hold dominion over Cap Ferrat. In parallel to these industrialists with very high buying power, a clientele composed of executives is now developing, originating from Russia and interested in more affordable properties. As in Cannes, stays are getting longer and the first enquiries for year-round rentals have made their appearance. The English, Irish and, to a lesser extent, Italians complete the picture. They adore typical villages, residences harmoniously integrated into their settings, exuberant vegetation and the feeling of being safe. Not forgetting proximity to Monaco, a destination both chic and festive, and the Nice Côte d’Azur International Airport. The wealthiest hope for a contemporary or “Belle Epoque” villa with spearhead amenities, overlooking the Mediteranean. For such a property, extremely rare, the asking price lies between 120,000 and 300,000 € per month. Average transactions lie in the 40,000 to 110,000 € bracket and correspond respectively to a rather simple Provençal villa with 4 bedrooms, and a property offering more prestige. June and September post prices 20-25 % lower. Used to having maintenance staff, a body-guard, nurse and chef, Russian clients stay for at least 60 days whereas Europeans book by the fortnight or month. A new phenomenon that perturbs estate agents, battling with a market functioning at two different speeds and posting different price grids. In July and August, the occupancy rate for individual properties with top-notch amenities on Cap Ferrat is virtually 100 %. Properties at the lower end of the market, offering obsolete appointments, are suffering. East Europeans are not interested in apartments, except for those in residences at the water’s edge. From the Monaco Grand Prix to the end of September, flats are however popular for short lets. A 3-bedroomed flat costs from 6,000 to 15,000 per month. Autumn is often a busy period. An identical apartment in Beaulieu-sur-Mer will cost 20-25 % less. Villefranche is the third corner of the Golden Triangle. A few luxurious villas nevertheless bear comparison in terms of prices.
“On Cap d’Antibes, it was the same : summer 2007 was one of our best vintages,” confirms Sylvie Coucy from International Cap d’Antibes. 80 % of tenants here are Russian, aiming for close proximity to the deep blue sea and choosing the Côte d’Azur by tradition. Some reserve from one year to the next, most start looking in October. Which means beautiful properties are no longer on the market, while the category around 15,000 € still has availabilities. An outstanding example with 7 to 10 bedrooms in grounds of 5,000 m2 edges up to 200,000 €. The average price is about 50,000 €, ie. a budget typical of English and Swiss clients. The “high season” here means June, July and August. Unexpectedly, the Film Festival does not really affect this cape blessed by the gods. Tenants literally melt for its blend of a luxuriant setting and an azure-blue view, the beaches of La Garoupe and the Hôtel du Cap. The majority hop over to Monaco, appreciating its high security. More refined than in the past, clients here are fond of France and very loyal. “Potential clients frequently visit both capes,” says Sylvie Coucy. On the price scale, Cap d’Antibes is listed between Cap Ferrat and Cannes. According to our specialist : “In the 100-130,000 € bracket, you get better value for money on Cap d’Antibes”.
By Laetitia Rossi.
