Renting a property on the Riviera
Close-up on the seasonal rental market, from Menton to Saint-Tropez.
When summer arrives, the Côte d'Azur is an irresistible magnet for the happy few. Focus on the rental market…
Once little fishing ports or resorts where one spent the winter, the Riviera's towns won a reputation 150 years ago as smart and trendy destinations. To cater for such popularity, they gradually built up their hotel infrastructures. Cannes and Monaco boast some really palatial hotels, Nice proposes a wider choice. As for VIPs heading for Saint-Tropez, they opt for both prestigious addresses and rented properties. The latter have a surprising number of fans - and not just on this famed peninsula in the Var.
Members of the real-estate industry admit they had a difficult summer season in 2004. Sophie Laffont of the Michaël Zingraf agency reports a 30% drop in frequentation - though that figure didn't apply to Cap Ferrat, too exclusive to suffer from the crisis. There were several reasons why visitors stayed away : the worldwide political and economic scene and the emergence of new attractions such as Morocco and Croatia. Furthermore, people come for shorter stays : one month at the top end of the market, a fortnight for the middle of the range. Finally, since the year 2000, prices had risen by 30 to 40%. Today, however, tenants try hard to negotiate. And Internet has opened up the rental market, making it more transparent : offers are more competitive, thus curbing any excesses.
“If we approach the rental market in terms of prices, Saint-Jean-Cap-Ferrat tops the list,” says Sophie Laffont. “A villa of 450 m2 with refined appointments and sea view costs 100,000 € per month in summer, 200,000 € if it's right at the water's edge. On Cap d'Antibes, think in terms of 80,000 €, 65,000 € in Cannes, 50,000 to 70,000 € at Saint-Tropez, 60,000 € at Beaulieu-sur-Mer, Villefranche-sur-Mer and on Cap Martin (except for properties on its private estate), 35,000 € at Saint-Paul and Mougins.” These areas are the main ones proposing top-notch seasonal rentals. Monaco attracts a wealthy clientele for longer periods, while Nice is much more accessible. Tenants come from northern Europe but also from America, the Middle East and Russia. The Russians account for 10% of rental clients and 40% of rental income. Some people rent to test their motivation before buying a property. Likewise, owners rent out their homes while waiting for a buyer : 60% of rented properties are also up for sale.
Cap Ferrat draws an English-speaking clientele, attracted by its closeness to Monaco and concerned about security. These factors, plus the sublime setting, still don't explain the high prices. “Out of 500 properties, only 7 to 8% are available for rent,” explains Alain Rodriguez of the agency of the same name. Rarity is thus a decisive factor. Some clients accept Beaulieu with its “Belle Epoque“ heritage as second choice, or Villefranche which offers a few high-class apartment blocks. Reckon on paying from 20,000 to 30,000 € per month in summer for a 2-bedroomed apartment with sea view. On Cap d'Antibes, highly sought-after in the high season and during the Cannes Film Festival, prices resemble those on the private Domaine du Cap Martin, where only about a dozen properties are offered for sale.
Cannes deserves special treatment because its rental market is not only active in the summer months but also during conventions and festivals. Marie Cervera of the Labouré agency mentions the GSM congress (telephony), MIPIM (real-estate fair) and the Film Festival as amongst the most lucrative. Rentals are then occupied 100%. The town thus deeply regrets that the GSM congress is leaving the Croisette next year for Barcelona. The MIPCOM, MIPTV, FIPA (advertising) and MIDEM (music) events also bring a lot of business. Today, however, more transactions are required to attain the same turnover as in the past. During major events (except the Film Festival), a 2-bedroomed apartment will rent for 3,800 € per week and a villa of 250 m2 with sea view for 4,500 €. During the Film Fest fortnight, expect to pay 7,000 € per week for the first, 9,000 to 10,000 € for the second. In summer, La Californie (close to the centre), Le Cannet with its plunging views of the Mediterranean, and Mougins, a paradise for golfers, post monthly rates for high-class rentals starting at 23,000 €. Add a further 7,000 € for Super-Cannes. A 2-bedroomed apartment in the town centre rents for 6,000 € per month, 9,000 € if it's on the Croisette or in a residence in La Californie.
Renting enables the owner to cover his maintenance costs but also to make a profit. Though it's not pure speculation when people acquire a property in one of these sectors and put it on the rental market, because purchase prices are equally high. Such acquisitions are, however, sound investments with excellent returns over the long-term. Estate-agents are optimistic for the 2005 season which has apparently gotten off to a good start. After Paris, and even though somewhat timidly for the time being, the Côte d'Azur is again finding favour with its American clientele.
By Laetitia Rossi - Photos Edith Andreotta
