With an influx of eastern wealth and demand outstripping supply, the property market on the French Riviera has never been more buoyant, and the potential for rental returns is huge
For decades the Cote d’Azur has been one of the most sought-after luxury destinations for prime residential property, thanks to its temperate Mediterranean climate, beautiful natural surroundings and exclusive amenities.
Celebrities and high-net-worth individuals such as Paul Allen, Johnny Depp, Roman Abramovich, Bono, Elton John, Madonna and Michael Schumacher have already invested in exceptional multimillion euro properties along the French Rivera. It’s clear that the very high-end south of France property market is untouched by the economic crisis that western economies so fear, with the arrival of eastern wealth snapping up the remaining exceptional waterfront and sea-view properties along the Cote d’Azur. Due to the limited supply of exclusive properties, estate agents predict that prices, especially of waterfront properties, will continue to increase for the foreseeable future. Quite simply, the lack of high-quality properties at the top end of the market means that currently supply doesn’t meet demand.
Buyers of all nationalities are also looking inland to purchase rural estates, particularly those situated near to small provincial villages. The Var region of the south of France is proving to be a popular location. Within easy reach of Nice airport, the unspoiled country setting offered by this area can be as appealing as the coast itself. Barbara Gray, sales manager at luxury real estate agency Beauchamp Estates’ south of France branch, believes this purchase trend is set to continue. “Buyers commonly perceive better value for money, gaining more square metres per euro and better distribution of space in the property and the land. These properties also often have a different type of potential, not only for renovation, but extension and the promotion of vineyards and olive groves, for example.” Gray also identifies that tastes are varied and many buyers demand a different sense of luxury, focusing on secluded properties with charm, traditional architecture, and a deep-rooted history within an organic agricultural setting, providing the ultimate in peace and tranquillity.
For those with a budget of €10–€20 million (£8.1–£16.2 million), Cannes offers the opportunity to invest in property with potential to bring return on investment through rental income. Villas in the foothills of Cannes in the Californie district or apartments on the Croisette in central Cannes are very popular locations. Property owners can take advantage of renting their residence not only to holidaymakers during the traditional rental season of June to September but also during the off-peak season from October to May. Approximately 20 trade shows and exhibitions take place at the Cannes Palais des Festivals congress centre, creating a high demand for accommodation and event venues. According to Devon DeRousseau, an account executive at international events management company JG, “both our private and corporate clients often request private properties as the venue for an event. From experience, the budget can be very interesting for property owners”.
Cannes, unlike many other seaside destinations, offers potential to rent throughout the year. Beauchamp Estates is marketing a 250sqm apartment in central Cannes close to the Palais des Festivals which can be rented for up to as much as €100,000 per week during the MIPIM world property exhibition. A villa with a swimming pool and sea view in the Cannes foothills can bring up to €50,000 for a two-week holiday rental in peak season. Fortunately the sun is still shining in the south of France. – Kerry Bracken
