Cannes, a symbol for prestige
Renowned for its Film Festival, Cannes is one of the best ambassadors of the Côte d’Azur. Luxury boutiques, palatial hotels and sandy beaches line the Croisette, while more luxuriant neighbourhoods gaze out at the bay.
The centre of Cannes lies at the foot of Le Suquet, the town’s authentic and picturesque Old Town. Yacht marinas are dotted along the seafront, rubbing shoulders with the legendary Palais des Festivals. Hotels, restaurants and shops all flourish here, thanks to the town’s dynamic tourist industry. French-style luxury finds its real expression here in Cannes. A survey of upper-crust neighbourhoods conducted in 2007 by Knight Frank and Citi Private Bank ranked Cannes at the top of the list with an average 15,000 €/m2, ahead of addresses such as Saint-Tropez, Nice, La Baule, Biarritz, Evian or even Paris. The Martinez, Carlton and Majestic Barrière hotels share the limelight with three casinos. In 2007, 36.5 % of properties here were holiday homes. In the country’s second busiest town for congresses, the mood is decidedly cosmopolitan.
“The destination benefits from its historic appeal, and its property market has continued to develop and diversify,” say Michel and Franck Magrey of Magrey & Sons. Buyers welcome the diverse choice, especially in the category of top-notch apartments. Properties worthy of the name are still presented at reasonable prices compared to those on the capes and in Saint-Tropez. By way of example, a residence of 1,300 m2 in need of a revamp, in grounds of 14,000 m2 with a swimming pool and tennis court, on the Chemin des Collines, recently sold for under 24 million euros, would cost almost double on the west side of Cap d’Antibes. The 3 to 15 million euro bracket seems to be doing very well, with the average price for individual houses revolving around 5-6 million euros, bringing a home of 300 m2 in grounds of 2,000-3,000 m2 facing the Med. At this price level, transactions always concern second residences. The same amenities cost close on 15 million euros on the famous capes in the Alpes-Maritimes and the Var. The only caveat : Cannes has no properties right at the water’s edge. Fans of this particular type of property aside, investors from all four corners of the planet, disappointed by exorbitant prices and the poor choice of references available on the capes, are drawn to Cannes and its margin for progression over the longer term. Let’s not be mistaken, however : the international economic context remains tense. Furthermore, owners, rarely in a hurry to sell, often refuse to budge. Paradoxically, there have never been so many blue-chip properties for sale in Cannes - ie. homes of 1,000 m2 in 10,000 m2 of grounds, on offer from 25 to 50 million euros and more. Visits are naturally more qualitative than quantitative. Apartments of 100 m2 in La Californie - three main rooms at around 10,000 €/m2 in residences with parks and swimming pools - have their fans, as do top floors on the Croisette, at 40,000-50,000/m2. On this famous boulevard, properties to renovate in standard buildings are already pegged at 15,000-20,000 €/m2.
Over the last three seasons, 60 % of the transactions orchestrated by Magrey & Sons have concerned villas. Jörg Buchen of Engel & Völkers notes high demand for prime locations, namely, the Croisette and La Californie for apartments, the Chemin des Collines, Corniche du Paradis Terrestre and Super-Cannes for houses, with Oxford and La Croix-des-Gardes bringing up the rear. Among his most recent sales, he cites two renovated apartments of 100 and 125 m2 on the Croisette, snapped up at 2.9 and 3.5 million euros. On this seafront which gets the most media coverage on earth, potential buyers, from Switzerland, Luxembourg, Belgium, France, Germany and Scandinavia, are looking for living space of 80-125 m2, at prices between 2.5 and 3.5 million euros. East Europeans show more interest in houses costing 4-8 million euros, sometimes even above 12 million. At these levels, they take their time making a decision, which naturally has an impact on the flow of transactions. Recently, a villa of 320 m2 in good condition in grounds of 2,500 m2 in Super-Cannes found a taker at 4.5 million euros, while another example of 380 m2 on the Chemin des Collines in grounds of 2,100 m2 changed hands at 3.6 million. Cannes is coveted by a truly international clientele. Consequently, the shakiness of one or another country does not affect its property market, unlike that of Majorca, which depends on the financial solidity of England and Germany.
“Distribution of the last ten transactions organized by the Michaël Zingraf agency has been fairly even,” says Heathcliff Zingraf. A Russian client paid about 13 million euros for a property of over 1,000 m2 in La Californie. English buyers spent 2-2.5 million for a house in the same neighbourhood. An apartment of 80 m2 just behind the Croisette was acquired by a Russian client for about 1.2 million euros. And a German buyer paid 10-12 million euros for a property of 700-900 m2. Russian interest in the Croisette remains strong. Very keen on this address, they rarely haggle over prices and are prepared to pay 1.2 to 10.5 million euros for their holiday homes. Apart from this particular case, clients tend to bargain quite drastically. For their part, sellers prefer to withdraw their properties from the files rather than accept low offers. East Europeans go for ostentatious luxury and want to be close to the Mediterranean. North Europeans are fond of authenticity, noble materials, contemporary architecture and a view of the sea. Cannes has competitors at national level - Saint-Tropez and Cap d’Antibes - and also on the international market ; Monaco, Miami, Sardinia and Ibiza. Its palatial hotels, festivals, gastronomy and accessibility contribute to its on-going success.
By Laetitia Rossi
