Seasonal rentals and the ''Golden Triangle''
The excellent reputation of the area defined by the three coastal resorts of Saint-Jean-Cap-Ferrat, Beaulieu and Villefranche-sur-Mer dates back to the 19th century. Over the decades, the renown of this maritime site, preserved from rampant urbanisation, continued to spread to the point of drawing the world's wealthiest elite each and every year.
The excellent reputation of the area defined by the three coastal resorts of Saint-Jean-Cap-Ferrat, Beaulieu and Villefranche-sur-Mer dates back to the 19th century. Over the decades, the renown of this maritime site, preserved from rampant urbanisation, continued to spread to the point of drawing the world's wealthiest elite each and every year.
The impact of the crisis
Jonathan Gray, director of Beauchamp Estates, comments on the consequences of the global economic situation on the market for seasonal rentals in the Golden Triangle. The area comprised of Villefranche-sur-Mer, Saint-Jean-Cap-Ferrat and Beaulieu is characterized by top-notch accommodation. However, in troubled times, budgets always show a downward trend, due more to a reflex or a kind of mimicry on the part of would-be tenants than any real need to obtain a discount. Fuelled by relatively strong demand and an acceptable occupancy rate in July and August 2009, owners are sticking to their guns. The market for rented villas is benefitting from a decline in the number of transactions, with both parties postponing their plans for purchase or sale. Buyers are waiting for a clearer reading of the situation, while owners, eager to at least cover their maintenance costs, are hanging on in the hope of better selling opportunities. While some people rent by the month, the average length of summer rentals is around three weeks. Russian clients, North Europeans, Middle Easterners and Indians are still keen to rent. The decline in the English clientele is not as significant as one might imagine. Depending on their capabilities, clients pay from 12,000 to 120,000 € per week in the summer season. If one goes by the number of reservations already confirmed, the 2010 season looks very promising.
The clientele for Saint-Jean, Villefranche and Beaulieu
Frédérique Mathias of Azur Méditerranée describes the typical profile of clients wanting to rent in the Golden Triangle. The French account for 40 % of the clientele for apartments, though they no longer show any interest in villas. In summer, French clients gen-erally treat themselves to a 2-bedroom apartment in good condition, prolonged by a terrace, opening out to the sea and located in a residence with a pool at Beaulieu or Villefranche-sur-Mer and costing 3,000-5,000 € per month, with Saint-Jean attaining peaks of 10,000-15,000 €. Fans of villas consist exclusively of foreign clients. Russians and Middle Easterners top the list, paying from 30,000 to 200,000 € per month. Americans prepared to pay up to 100,000 € are coming back, like the Australians. Scandinavians and North Europeans are still there. In 2009, negotiations were pretty tough and only finalized late in the season. Not everyone demands a price reduction, though they all require cost-free services in the package. In most cases, tenant behaviour is exemplary - there are less parties here than in Saint-Tropez ! The proximity of Monaco and the international airport is a strong argument. Fans of the eastern Alpes-Maritimes are happy to stay in Nice, much more rarely in Cannes. Most contracts range from 3,000 to 4,000 € per month for apartments, 50,000 to 70,000 € for villas. The occupancy rate reaches 80 % at the top-end of the market, 50 % for standard properties.
The triangle facing west in the Alpes-Maritimes
Lafond of the Michaël Zingraf agency compares the loveliest neighbourhoods of Cannes and Cap d’Antibes with the eastern part of the Alpes-Maritimes, an exclusive address symbolized by the sublime Cap Ferrat. They benefit from eternal popularity, a coastline and a privileged environment, peaceful and luxuriant, sheltered from the hubbub of the town centres. Together, they top the bill on the Riviera. If the Russians adore the two capes without differentiation, some clients systematically look for rentals in the eastern part of the Alpes-Maritimes, discreet, secure and close to the Principality of Monaco. For similar properties, prices in Cannes are doubled on Cap Ferrat. Cap d'Antibes, Villefranche and Beaulieu are 30 % cheaper than the N°1 cape, with Cap d'Antibes enjoying a slight head-start. It is also on these peninsulas blessed by the gods that records are set, to the tune of 350,000 € per month in summer. Generally speaking, the Alpes-Maritimes are feeling the pinch of fewer Russian clients, who have taken a beating on the stock markets... To a lesser extent, however, when one talks about the coast and especially in the case of exclusive properties. Not really aware of the impact of the crisis on the rental market, some owners who have refused offers find themselves with unoccupied properties. Cannes, which lives off congresses and festivals, benefits, since January, from a clearer picture of the trend and the possibility of adjusting prices for the summer season in order to limit the effects of the turbulent international economy. The 2010 season should not encounter too much difficulty, provided that owners are reasonable and adapt to these modifications to the market.
By Laetitia Rossi - photos : press.
