Cannes, a new tide of optimism
This town to the west of the Alpes-Maritimes owes its development and “Belle Epoque” buildings to Lord Brougham and the English aristocracy of the late 19th century. Though its worldwide renown can naturally be credited to its International Film Festival, widely covered by the media, the setting provided by this former fishing port, and its idyllic climate.
Behind the legendary glamour and glitz associated with the Film Festival, Cannes is in fact France’s second busiest congress town after Paris, and undoubtedly one of the country’s most popular destinations. A real amphitheatre facing the Mediterranean, it boasts a property market as diverse as its neighbourhoods. From its famous seafront to the historic town of Le Suquet. From the ultra-residential Californie to La Croix-des-Gardes, via Super-Cannes and Le Pezou, enjoying sublime plunging views of the Bay of Cannes. In 2007, a survey carried out by Knight Frank and City Private Bank as part of a report on wealth ranked the Festival City sixth on the list of the world’s most expensive addresses. While the period which followed this classification proved much less favourable for real estate and investment, the alluring town of Cannes put up a convincing show of resistance.
“The recent up-tick can be explained by the fact that sellers are finally becoming more pragmatic and are prepared to lower their prices,” says Beatrix Eikel of the Engel Völkers agency. Furthermore, the exchange rate is attractive for the British, Swiss and Americans… Nationalities already long familiar with the charm and long-term potential offered by Cannes. Select apartments of about 80 m2, priced from 800,000 to 1.5 M € depending on their views and condition, in prestigious residences with gardens and pools such as “Le Sémiramis”, are doing well. Some clients are also visiting properties in La Croix-des-Gardes as long as they are in perfect condition, with impeccable appointments and panoramic sea views. A large apartment meeting all these criteria in fact just found a new owner at 7,950 € per sqm. The neighbourhood of La Californie posts an average ratio of 9,000-10,000 € per sqm. with spikes up to 16,000 €. British and Middle Eastern clients are particularly well-endowed in terms of budgets, whereas Parisian and German buyers will not pay more than 1.5 M € for an apartment, or 2 M € for a villa. One of them recently parted with 1.7 M € in exchange for a 4-bedroomed house in grounds of 1,700 m2 with a swimming pool, in Le Cannet.
Paul Bernard, Director of the John Taylor agency in Cannes, points to a rise of 30 % in this year’s sales volume as compared to that of 2014. “The overall decline in prices that began last year partly explains this upturn in activity. Villas and apartments are showing the same vitality. While Russian clients are less in evidence than in the past, the clientele remains highly cosmopolitan. John Taylor is thus reinforcing its partnerships with the USA, especially with Corcoran New York.” Joined by a few Asian clients, Scandinavian and English buyers continue to show interest in apartments from 1.5 to 3 M €, and villas from 2 to 6 M €. For exceptional properties, exceptional budgets : as witnessed by enthusiasm for penthouses and luxury properties above 10 M €, and steady demand combined with high prices for the very essential Croisette. Highly demanding, this clientele is willing to pay the price but insists categorically on top-notch quality. 2016 could well confirm this positive trend, especially as Monaco no longer seems to be affected by the crisis, Paris has more wind in its sails, and Saint-Tropez is recovering its share of the market.
“There is always a time-lag between the capital and the Côte d’Azur,” comments Laurence Chaleil of Côte d’Azur International Realty. And the two addresses obviously attract two distinct types of buyers. Paris is also a magnet for single-minded investors. Cannes combines acquisitions for personal enjoyment with sound investments. Indicators for Cannes are green for go, though the market has not yet fully attained its cruising speed. Over the past year, Laurence Chaleil describes three areas in constant demand : the Croisette, ranging from 15,000 to 47,000 € per sqm, La Californie, pegged at around 12,000 € per sqm, and La Plage du Midi. In parallel, municipal policies for high-quality living conditions are giving rise to on-going improvements. The arrival of East Europeans led to soaring property prices. Today, things are based more squarely on reason. Completion times have certainly become longer, but Cannes remains just as highly regarded by the entire world. Starting with Asia. Still timid and far from decisive when making their choice, these distant clients are already making more and more enquiries.
