Seasonal rentals on the Côte d’Azur
The combination of a natural setting of renowned beauty, a varied architectural heritage, first-class hospitality structures and leisure facilities explain why 10.3 million visitors make the trip every year. Just like property sales, rentals on the Riviera falter under the yoke of successive crises, but never collapse. A review of of 2009, expectations for 2010...
According to the Riviera Côte d’Azur Regional Tourist Board, this coastline blessed by the gods is France’s second most popular tourist destination after Paris, with 4.5 billion euros in turnover and 75,000 direct jobs generated in the Alpes-Maritimes (18 %). The sea and mountains reign supreme over the entire region. Sumptuous capes, wild creeks, beaches of sand or pebbles succeed one another, while Alpine peaks soar to 3,000 metres above sea level, the National Mercantour Park offers 600 km of marked hiking trails, and the ski resorts, only 90 minutes from the Med, propose 700 km of slopes. Far from contenting itself with its natural beauty, the aptly named Côte d’Azur battles away on all fronts : thalassotherapy centres and spas hold a candle to casinos, 23 golf-courses, establishments either trendy or select, luxury boutiques in Cannes, Monaco and Nice. One simply has to look around to notice a baroque or “Belle Epoque” building, a church or castle, prehistoric or Roman remains. And one can learn about this cultural and artistic melting-pot, centuries old, in about 100 on-site museums. If you really have to choose, the Tourist Board advises the Fort Carré (Antibes), the Greek Villa Kerylos (Beaulieu-sur-Mer), the Abbey of Lérins (Saint-Honorat), the Chapelle Notre-Dame-des-Fontaines (La Brigue), the sanctuary of Notre-Dame-de-Laghet (La Trinité), the Trophy of the Alps (La Turbie), the Henry Clews château (Mandelieu), the Russian Orthodox cathedral and the Roman arenas in Cimiez (Nice), the monastery of Saorge, the Villa Ephrussi de Rothschild (Saint-Jean-Cap-Ferrat) and the imposing Citadel of Saint-Elme (Villefranche-sur-Mer).
“In 2009, turnover from seasonal rentals dropped in Cannes, as well as on Cap Ferrat and Cap d’Antibes, by 20 % compared to 2008, which was an excellent vintage,” says Jacqueline Swaep of the John Taylor agency. Owners play the game of hard negotiations, rather than taking the risk of not renting out their properties. Unlike other centres of attraction, Cannes works all year round thanks to its conferences and festivals. If the MIPTV (April), Boat Show (September), MIPCOM, Tax Free World Exhibition (October) and Midem (January), of shorter duration, suffer from severe competition from hotels, the MIPIM (March) and International Film Festival (May) are particularly fruitful. During the annual gathering of real-estate professionals, high-quality villas and beautiful apartments with 3/4 bedrooms on the Croisette are rented out for 15,000 € per week. For the same accommodation, the 2-week Film Festival requires expenditure of between 15,000 and 130,000 €. A classic 2-bedroom apartment within walk-ing distance of the Palais des Festivals costs 5,000-8,000 per week in March, 12,000-15,000 € for the last two weeks of May. In summer, rates start at 25,000 € to attain the mind-blowing sum of 350,000 € per month, a record corresponding to a park of several acres opening out to the Mediterranean, nine suites, accommodation for house staff, a tennis court, pool, and service typical of palatial hotels, on the sublime Cap d’Antibes and Cap Ferrat. Russians, Anglo-Saxons and Middle Eastern clients still allow themselves these incursions into the upper stratosphere. The majority of clients, however, aged from 30 to 50, are prepared to spend 50,000-60,000 €. With the era of the Provençal villa now apparently gone forever, they all dream of contemporary architecture and interior decor.
In Mougins, Alexandra Merz of the L&F agency reports a drop of 10-12 % in the number of contracts for a financial return equivalent to the previous year, partly due to longer stays and the quest for higher standards. As early as last December, bookings for 2010 resumed at a steady pace. The French, Belgians and British contribute to a lively market. Affected by the weak dollar, Americans still lack realism about the relationship between their budgets and criteria. The Scandinavians, Dutch, Germans, Swiss, Russians and Poles are expected to arrive at Easter. Usually set on August, Middle Easterners could exceptionally choose July in order to observe Ramadan in their country of origin. A lovely countrified setting, flat grounds and spacious interiors remain the preserve of this beautiful village, a 10-minute drive from the Croisette and very popular among families. Here, comfort outweighs ostentatious luxury. Only 20 % of properties benefit from a panoramic view of the sea. Most clients pay from 10,000 to 15,000 € per week, though rentals actually range overall from 6,000 to 45,000 €.
Like his colleague, Romain Favelier of Burger Sotheby’s International Realty says he was satisfied with the season in Saint-Tropez and an occupancy rate close to 75 %, a score obtained with hardly any price reductions. Willing to pay 50,000 € per month on average and up to 100,000 € and more in exceptional cases, his cosmopolitan clientele wants to be within walking distance of the Place des Lices, or a property on a gated and guarded estate. Les Parcs de Saint-Tropez continue to top the list. A sea view, services and impeccable condition comprise the minimum required by these demanding tenants. The youngest set their sights on the festive village or immediate proximity to the beaches of Pampelonne, others appreciate the peacefulness of Ramatuelle. The market for longer rentals - ie. several months - is picking up. “Decidedly, this destination pays no attention to crises and has no competition,” says our specialist.
By Laetitia Rossi
