Holiday rentals
The Regional Tourist Board’s Observatory confirms a positive trend in the number of visitors to the French Riviera, Monaco included, up until the summer of 2008, counterbalanced by less encouraging figures in the 4th quarter. The result of the survey : a vintage similar to 2007. What about 2009 ?
In 2006, 10.2 million visitors came to the Côte d’Azur. Depending on the period, from 50,000 to 750,000 tourists set foot on the Riviera, with the lowest number registered in mid-December, the peak period on the weekend of August 15th. 52 % were foreigners of whom 22 % came from Italy, 20 % from Great Britain and only 5 % from Eastern Europe - a modest share for an influx that has not gone unnoticed in the upper bracket of the market. Last December, everything ground to a halt : the Tourist Board announced “a chill wind affecting the trend”. Italian visitors, usually present for year-end festivities, did not succeed in saving the month, for which the only rising indicator was the number of people visiting tourist offices. Air transport suffered from the economic situation, with a net decrease close on 16 %. Despite a worrying year-end, 2008 showed a slight overall progression compared with 2007. With 2.7 million “air travel stays”, it chalked up a 7 % rise in the air transport field and an additional 100,000 visitors in the business travel sector. “Market dynamism is naturally affected by the economic crisis, though the Riviera could benefit from a favorable position because of its accessibility and the diversity of its offerings,” concludes the Tourist Board’s study.
“In 2008, seasonal rentals in Cannes followed the gen-eral trend,” says Christie Larnicole of Magrey & Sons. “If regulars take their time and indicate budgets 20 % lower, this summer promises to do relatively well, with the International Film Festival, last year’s black spot, though not the MIPIM, not very encouraging in the light of early bookings. Congresses scheduled from March 10th to 13th are not bringing in the crowds. Hotels are trying to save face by proposing more and more promotional packages, while estate-agents are certainly not weighed down by demand. A classy 3 bedroom-ed apartment on the Croisette starts at 6,000 € per week. A villa in the lower part of La Californie can reach 30,000 €. During the Film Fest fortnight, the same properties are rented from 17,000 € and 45,000-50,000 € respectively. The clientele mainly consists of companies, entities likely to reduce their communication budgets in the tense international situation.” Prices for the summer months correspond more or less to those of the fortnight dedicated the Seventh Art. Russians and Eastern Europeans in general offset the loss of the British. Making a comeback, some Middle Eastern visitors could bring their holidays foreward due to the religious calendar, with Ramadan beginning on September 1st, 2009. Unlike the Festival City, Mougins is finding it more difficult to get over the departure of the Anglo-Saxons, particularly fond of the site which is 15 to 20 % less expensive for the same amenities. The impact of MIPCOM in October, MIPTV in April, the Tax Free World Exhibition in November, and the International Yacht Show in September brought financial blessings traditionally lower compared with the two major events mentioned above and the high-season period.
“In Cannes, on Cap Ferrat and Cap Antibes, the John Taylor agency improved its turnover by 20 % in 2008,” admits Jacqueline Swaep. She adds that last-minute reservations and the rental of large properties largely contributed to this result. The collapse observed in November and December has hardly been of consequence : in terms of seasonal occupancy, the essential period lies between March and October. Properties on the coast are proposed on a monthly basis whereas owners in the chic hinterland, Mougins and Saint-Paul, agree to make them available for a fortnight. Some Russian oligarchs stay for two to four months on estates on the capes, always 90 % full in July and August. They pay 30,000 to 300,000 € per month, with records of about 500,000 €, prices that hit the roof on these peninsulas blessed by the gods. The average transaction, however, is concluded at 100,000 €/month.
“Cap Ferrat and Cap d’Antibes imply such high levels of expenditure that tenants do not hesitate to make preliminary visits,” says Peter Illovsky of Burger Sotheby’s International Realty. For 2009, specialists are expecting increased activity. Potential buyers who are postponing their projects until later may decide to spend the summer on the Côte d'Azur. They give priority to the address, with Pointe Sainte-Hospice and the village of Saint-Jean winning all the votes. Villefranche and Beaulieu-sur-Mer post prices 20 % lower, as does Cap Martin, historically very popular. Proximity to Monaco and a “Belle Epoque” heritage at the water’s edge enable Cap d'Ail to compete with Cap Ferrat without blinking an eye.
By Laetita Rossi.
