Seasonal rentals on the French Riviera
The consumer approach to holidays is changing, the clientele too. More volatile, vacationers are shortening their stays, visiting more destinations, giving priority to quality rather than quantity. New criteria to which the Côte d’Azur needs to adapt in order to maintain its leadership in the field of luxury international tourism.
The Alpes-Maritimes is one of the regions with the most visitors in France, much to the taste of holidaymakers from all four corners of the world. Each year, 10 million visitors head for these shores, and 40 % of people working on the Côte d’Azur earn their living, directly or indirectly, from the tourist industry. According to the Côte d’Azur’s Tourism Observatory, seasonal rentals account for 6 % of the stays.
Alexandra Venard, manageress of the rental department with Carlton International covers the area from the Italian border to Saint-Tropez. “Our luxury rental market starts from 10,000 € per week in summer and tops out at 430,000 € : our clients spend on average from 25,000 to 30,000 €, the sum required to spend seven days in Cannes in a house of 400 m2 in flat grounds of 3,000 m2, enjoying a panoramic view of the sea, contemporary appointments and cutting-edge home automation. 430,000 € is an exceptional amount of money to spend on a week’s holiday. It is the price of exclusiveness : living space of 1,400 m2 with 11 suites, a boat mooring and helipad in Saint-Tropez.” Scandinavian and American clients are very fond of the Côte d’Azur. The first appreciate authentic old stone and peacefulness, the second head for the beaches. As for Middle Eastern clients, very fond of Cannes, they are making up for the departure of the Russians, though it seems that East Europeans are showing signs of returning, and not only to the capes. The Côte d’Azur is in fact comprised of a multitude of micromarkets with deep-rooted characteristics. Including Saint-Tropez, the jet-setters’ paradise and a haven of tranquillity for families from all over the world. “Behaviour is changing : most of the stays are getting shorter, though some holidaymakers treat themselves to enchanting getaways lasting several months, far from home. Such is the case, for example, for Australians, Canadians and many others in search of a complete change of scene, who rent a property for six to ten months. It is worth recalling that a good number of our clients start by renting a property before becoming owners. For the past few seasons, bookings are concluded at the very last minute.” Today, professionals and owners need to be very flexible, and recognize that the privacy of a villa must be accompanied by a wide array of services : security and maintenance staff, a housekeeper, chauffeur, steward, cook or chef. “While the Côte d’Azur can well be proud of its natural assets, its climate and scenery, it must be careful to maintain a certain level of hospitality,” adds our expert. “Competition is tough : from Greece, Ibiza, Saint-Barths, Corsica, even the French Alps in winter, Megève, Méribel and Courchevel. Rather than accepting the fragmentation of holidays and the volatile behaviour of the clientele, it is well worth making them loyal and accompanying them in their choice, which is why we are happy to propose complementary destinations to our clients.”
“You really feel a desire to get away from it all, a need for sunshine and relaxation, dreams of peaceful settings and sweeping views, not forgetting a taste for service,” say Emmanuelle Le Quellec-Furrer and Judith Davis of the Impact agency. “Trained in the hotel and tourist industry, we were avant-garde when we extended our services to the point of relieving the tenant of any logistic contingences. That has now become the norm.” The market can be split into two segments : large properties priced from 90,000 to 200,000 € per month in summer, and highly-prized villas from 30,000 to 50,000 € in Cannes and on Cap d’Antibes. An increasingly generous and diverse range of offerings. In the Festival City, a 3 bedroomed apartment will find a taker from 10,000 to 20,000 € in July or August, at around 15,000 € in La Californie, and for 40 to 50 % more on the Croisette. In the case of congresses, the golden rule is maintaining a balance : attendance drops for one event, rises for another. The International Film Festival is losing ground while the Lions event has exploded, with turnover for seasonal rentals which has tripled in just two years, and the Tax Free World Exhibition which seems to be picking up. The MIPIM is also making progress, a sign of renewed confidence in bricks and mortar. All apartments less than a 10-minute walk to the Palais des Festivals chalk up an occupancy rate of close on 100 %. A 3-bedroomed apartment on the Croisette, between the Majestic Barrière and the Martinez, ranges from 15,000 to 30,000 € per week depending on its living space, the potential for giving receptions, and the existence or not of a terrace. The same apartment will fetch 12,000 € during the Lions convention, 10,000 € during the MIPIM, and 8,000 € for MIPCOM.
The area covered by Lucie Dieterich of the Agence du Littoral in Saint-Jean-Cap-Ferrat stretches from Villefranche-sur-Mer to Cap Martin. Year after year, the cape blessed by the gods, a garden of Eden with lush vegetation lapped by the Mediterranean, enjoys an occupancy rate of almost 70 %, largely fuelled by East European and English clients. The core of demand lies between 90,000 and 120,000 € per month, the budget required for four or five bedrooms, a pool, a view of the sea, and a minimum level of service. The top end of the market peaks out at 500,000 € per month, bringing seven very luxurious suites, several acres of grounds, a tennis court, pool, and a wide array of services. Some vacationers prefer Villefranche or Beaulieu, nurturing a special affinity with these livelier villages offering a wider choice of shops. Others take the opportunity of obtaining more affordable prices : the equivalent of a villa at 90,000 € per month in summer on Cap Ferrat costs from 50,000 to 70,000 € in Villefranche or Beaulieu. Finally, fans of properties at the water’s edge head for Eze. Vacationers set on the eastern end of the Alpes-Maritimes always have their eyes riveted on Monaco, a world-renowned centre of entertainment.
