The prestige property market in Cannes

Capital of the cinema, a name conjuring up stars, glamour and luxury, and a seaside resort of international renown, Cannes proposes high-end properties that are among the most highly coveted on the Côte d’Azur. Blue-chip investments, even if the current pace of transactions is somewhat slower.

A privileged address for tourism since the 19th century, Cannes perfectly embodies the sumptuousness of the French Riviera. With its Croisette lined with palatial hotels, its yacht harbours, luxury boutiques, casinos and, of course, its famous Film Festival, the third largest town in the Alpes-Maritimes (after Nice and Antibes) is still a destination that inspires many dreams. Not forgetting its prestige real estate, just as desirable…

“Prices in the mid to upper end of the market in Cannes range from about 700,000 to 1.8 M € for apartments, from 1.2 to 3 M € for houses. Beyond these levels, the very top end can attain dizzying peaks,” explains Jean-Christophe Hym, manager of the Agence Europa, based on the Croisette since 1977 and covering the entire area around Cannes (sales of apartments, villas, building land and commercial premises). “However, this exceptional market comprised of second residences is currently seeing a slowdown in the pace of sales, especially in the case of houses. This is due to fewer foreign clients, not happy with France’s instability in terms of taxation, and especially the scarcity of Russian clients due to the consequences of the crisis in Ukraine, whereas this clientele previously accounted for 80 % of sales at the top end of the market.” Our expert does, however, point to a pick-up in activity over the past few months, thanks to the gradual return of traditional European buyers - Belgian, Swiss and Scandinavian - and considerable demand on the part of the French. “Prospects are encouraging, especially due to the fall of the euro. Evolution which would totally refuel the market remains to be seen : a downward revision of prices, happening now but still not sufficiently to meet the numerous offers made by buyers.”

The manager of Eric Labouré Immobilier, an agency launched in 1986, mainly covering the region around Cannes (sales of old and new properties, rentals, management, property development and corporate real estate), Eric Labouré thinks for his part that there is every reason to be optimistic : “Prestige real estate is obviously just like other sectors hit by the economic crisis. Especially as this is a market mainly comprised of holiday homes, in other words, acquisitions for personal enjoyment. And the very substantial Russian clientele has virtually disappeared. Even so, Cannes is still a safe haven where sales have certainly not collapsed. Some prices have even become more attractive, which naturally tends to boost the market”. Another positive factor emphasized by our estate agent is the weakness of the European currency, which stimulates demand from the UK, Switzerland and the USA. “Seasonal rentals of large high-class villas are also witnessing lots of activity, proving that the market has lost none of its appeal.” The most highly-prized addresses - the Croisette, La Californie and La Croix-des-Gardes - have finally stabilized. “Especially the Croisette, where the average price is around 15,000 € per sqm and can attain 30,000 € per sqm in certain resid­ences.” In addition to his mostly foreign clientele looking for holiday homes, Eric Labouré receives enquiries about top-notch properties from people living in large French cities, aiming to spend their retirement here in the sun.

“The market is Cannes is very active for properties priced from 500,000 to 850,000 €, and relatively busy for those proposed above 5 M €. In between, business is rather quiet,” comments Bruno François, negotiator for Marly Privilège Cannes Croisette, an agency based on the Croisette for the past 25 years with three branches in the town centre, Le Cannet and Mougins (sales, rentals and renovation of properties, with management of the entire array of work to be done and collaboration from an architect). “In this middle-range bracket where there is now a wide array of offerings, we see a lot of visits, but rare are the sales which are actually completed. In addition to the tight economic situation, this can be explained by France’s unstable tax system and complications related to the Alur scheme : foreign clients in fact regularly express their concerns about the number, amount and evolution of the taxes they need to pay, as well as the quantity of paperwork they have to provide.” A few sales have nevertheless gone through, such as that of an apartment of 115 m2 on the Croisette, in need of renovation but offering a panoramic sea view, which recently sold for about 3 million euros. “A short while ago, we also sold an apartment in a high-end residence in La Californie. Offering living space of 140 m2, attractive appointments and a view of the sea, it changed hands at 2.5 M €.” In Bruno François’ opinion, the prices posted now remain steady. “Though they frequently fall in the course of the transaction, as bargaining is common and sometimes very tough.”