Sublime villas in Cannes
Laid out like an amphitheatre around the Mediterranean, the Festival City is the second busiest congress town in France after Paris and one of the country’s destinations with the highest number of tourists. It also has a very diverse array of accommodation that reflects its history, from “Belle Epoque” mansions to ultra contemporary homes.
La Croix-des-Gardes to the west, Le Pezou to the north, La Californie to the east and Super-Cannes just above it, all propose a varied and sometimes ill-assorted choice of villas. We are far from the days when Lord Brougham discovered a fishing village and decided to elect domicile in the lush area of La Croix-des-Gardes, soon followed by members of the English aristocracy. Almost 175 years later, the very international Cannes, the one that hosts the world’s most glamorous film festival, competes with top-rated addresses. The classification compiled in 2007 by Knight Frank and Citi Private Bank as a report on wealth placed Cannes 6th worldwide as the most expensive place to live, after London, New York, Tokyo, Hong-Kong and the Prinicipality of Monaco. In 2008, the financial world collapsed, bringing impulse buying and euphoria that reigned on the property scene to an abrupt halt. While this ambassador for the Côte d’Azur has not escaped the consequences, it has not taken long to prove its strong ability to resist.
“The market for houses, from “Belle Epoque” to very modern villas via classic homes built after the War and those in Californian style, all underpinned by luxuriant gardens, is obviously a real asset for Cannes,” says Jean-Christophe Hym of the Agence Europa. The elevated positions of neighbourhoods mostly offering villas allow for spectacular sea views. While La Croix-des-Gardes is still seen as the historic area, La Californie, La Corniche du Paradis and Le Chemin des Collines now top the bill. Naturally more expensive than an apartment, the villa is the less “fluid” segment of the market. Up to 2 million euros - the sum required, for example, for a home of 200 m2 in good condition, in grounds of 1,500 m2 with a glimpse of the sea -, refurbishment is often required. Above that level, the impact of the withdrawal of Russian clients, confronted by a rouble in sharp decline, a less go-ahead economy and a political crisis, is clearly making itself felt. Positive points : interest rates are still very low and many sellers have lowered their prices. A phenomenon that is, in fact, logical when one thinks that, from 1998 to 2008, prices went from francs to euros without any change in value, but nevertheless being multiplied by six. Today, Scandinavian, North and East European buyers are much more discerning, only considering acquisitions that are reasonable and well-reasoned.
“The two extremes in the market, ultra-contemporary homes ready to move in, and properties requiring total renovation, keep their heads above water as long as they stick to current market prices,” comments Georges Fassone of John Taylor. He cites the recent sale of a house of 250 m2 in perfect condition, in 2,000 m2 of grounds in Super-Cannes, pegged at around 5 million euros, and another of 450 m2 in grounds of 2,500 m2, priced at about 6 million euros, acquired by an East European client prepared to invest 1 million euros in renovation. Otherwise, there is still a gap between prices posted and those actually paid. It is a constant factor, like different cycles of buyers : one population chasing another, with neither one disappearing entirely, as fondness for the address becomes part of their culture. Thus, while Russian buyers are on the retreat, Middle Eastern clients are making a comeback. Unfortunately for villas, they prefer their biggest rivals : garden-level apartments with high security, penthouses or apartments on upper floors.
“Overall, clients are more hesitant, taking time to reflect before committing themselves,” says Karim Abel of Croisette Properties. The real core of demand for villas lies between 1.5 and 4 million euros. The set-back in prices mainly affects properties that are initially over-priced. Very smart contemporary properties combining magnificent views with enviable addresses are holding steady. Cannes is a blue-chip value, an attractive address at the heart of Europe, particularly stable in terms of a long-term investment. An argument that Miami or certain Spanish towns find hard to defend.
