Cap-Ferrat : a micro-market
Protected by the Coastal Law, this luxuriant headland of 696.50 acres separates Beaulieu-sur-Mer fromVillefranche-sur-Mer. Often dubbed the “billionaires’ cape”, it is well-known for it sumptuous properties. 500 villas in all, and prices per square metre which rank among the highest in the world.
Saint-Jean-Cap-Ferrat is a 10-minute drive from both Nice and Monaco. From 1908, the Grand Hotel brought a wealthy clientele to the cape. It soon saw the appearance of sublime properties such as those built by King Léopold II of Belgium and the Baroness Ephrussi de Rothschild. In this village in the western part of the Alpes-Maritimes, which won its independence in 1904, the utmost discretion reigns supreme. Everyone knows about the illustrious home-owners, but little is divulged on the amounts involved in certain sales. Members of the jet-set, movie and TV stars, artists and renowned politicians seek homes nestling among the olive-trees, palms and Aleppo pines, ready to pay on average 44,000 €, with spikes of up to 60,000 €, per sq. metre*.
“In 2012, the market on Cap Ferrat remained stable in terms of both prices and turnover,” says Mathias Debois-Frogé of the John Taylor agency, explaining the situation by traditionally steady demand and limited supply. Sellers still include a few old French families, Italian, Belgian and British owners, whereas 80 % of the buyers are East Europeans. They appreciate the proximity of the Nice Côte d’Azur International Airport and the very select Principality of Monaco, the absence of noise from the road or railway, and the feeling of security provided by the cape’s single access road and its preservation. While some will only consider this address due to its prestigious reputation, others compare it with other capes between Monaco and Saint-Tropez, or even Cannes, Villefranche or Beaulieu. The market would, of course, be more active if business and fiscal contexts were easier to foretell. Transactions completed over the past year ranged from 2.6 million euros - the sum required for a smart penthouse of 150 m2 with a terrace of 100 m2 - to 42 million euros, the price-tag on a property of 700 m2 right at the water’s edge, in need of renovation. There is, however, a severe lack of quality properties at realistic prices. Especially on the shore, with sea views facing either east or west. By way of example, a Provençal villa of 300 m2 to restore, in grounds of 1,500 m2, was recently snapped up at 8.5 million euros.
“The soundness and long-term value of the investment leaves no-one in any doubt,” says Jean-Claude Caputo of Savills Riviera, who mentions properties sold for 4 and 12 million euros corresponding respectively to living space of 230 m2 without any particular view, in the middle of the cape, and 300 m2 in need of a revamp on the west side, offering a lovely view of the Med. This estate-agent has observed a re-focusing on prime locations in general, and on Cap Ferrat in particular. The summer of 2012 proved to be especially lucrative for seasonal rentals, with clients paying up to 300,000 € per month and a very rewarding early season. This procedure is sometimes the first step towards an acquisition, or a solution before unearthing the desired property or assessing the impact of new tax regulations on the market. Cap Ferrat is still one of the world’s most sought-after seaside addresses, together with Millionaires’ Bay in Antibes, Saint-Tropez, Saint-Barth, The Hamptons, Palm Beach, Portofino and Capri. Buyers seem to be motivated by personal enjoyment combined with a desire for a sound investment, recognized as being fast and easy should they want to re-sell. Conservation of the site, virtually untouched, is seen as an additional guarantee. Estate-agencies often obtain exclusive mandates linked to clauses of confidentiality. At the moment, Savills can propose a property of over 50 M €, though no further information can be divulged until the visitor’s solvency has been established.
“Over the past six months, we’ve seen a change in buyers’ behaviour. They often postpone making a decision,” says Jörg Buchen of Engel & Völkers. French, German, English and Belgian clients are more interested in apartments. One paid 1,050,000 € for living space of 80 m2 on the harbour. A Ukrainian client then spent over 20 million euros on a property of 600 m2 in good condition, in 3,000 m2 of grounds. The clientele for Cap Ferrat is largely focused on Monaco. In fact, their initial choice of an address is often Cap d’Ail, in order to be even closer to the Principality. There are three price-brackets on the cape : the centre, from 3 to 8 million euros, properties with sea views, from 8 to 18 million euros, and those at the water’s edge, from 20 million euros. Demand currently focuses on the top end of the market or the 3 to 8 million euro bracket. Properties in between are taking longer to sell. The exceptional character of Cap Ferrat allows for encouraging prospects for the future, fuelled by a constant renewal of the clientele.
* Source : Wikipedia
By Laetitia Rossi
