Situated on the Mediterranean coast between Saint-Tropez and Le Lavandou, Cavalaire and La Croix-Valmer play host respectively to 6,350 and 3,300 inhabitants. Encircled by magnificent beaches and natural surroundings of impressive beauty, they are exemplary ambassadors of the Var’s vocation for seaside resorts.

Cavalaire lies in the middle of the bay of the same name, just below the Massif des Maures. Creeks succeed a 4-km stretch of fine sand. Fans of underwater diving and windsurfing are truly spoilt, just like hikers. Development policies and major construction work give the town a youthful and go-ahead image. An obligatory port-of-call on the Var coast, La Croix-Valmer boasts a number of famous buildings including the Grand Hôtel, Sylvabelle, the villas Alléluia, Andalusie, Turquoise, Louise, De La Croix, Les Bruyères and Le Manoir. Couadan is said to have been built for Sarah Bernhardt. An exuberant nature, about 750 acres of protected land, renowned vineyards and magnificent beaches... Clearly, the town is not lacking in assets.
“If intermediate and secondary schools are located over in Gassin, Cavalaire does offer a primary school, an extensive commercial network, a medical centre and all the infrastructures needed for everyday life. In fact, many seniors live here year-round. More seasonal and less built-up, La Croix-Valmer cannot claim the same population growth,” says Laurence Topfer of the Fiducimo agency. These early retirees are divided between houses and apartments. A small, relatively old house starts at 400,000 €. Another of 90 m2 requiring refurbishment, in grounds of 360 m2, has just sold for 525,000 €. Classy apartments of 100-150 m2 attract clients who prefer large terraces rather than gardens which need constant up-keep. Living space of 108 m2 with outdoor facilities of 198 m2 costs 829,000 €. An enviable apartment with refined appointments on the seafront is pegged at 9,000 €/m2, while the lowest price for a property to restore revolves around 3,000 €/m2. Occasional residents in search of a quiet family home spend from 600,000 to 1.5 million euros and beyond. Mostly French, Dutch, German, Belgian or Italian, they want to be near the Gulf of Saint-Tropez with a panoramic view of the Med, easy access to beaches and transport, the airport in Hyères or the train station of Toulon. In 2009, a property of 150 m2, set in grounds of 815 m2 and facing the bay, changed hands at 750,000 €. Another of 300 m2 with grounds of 4,513 m2 is currently the subject of a provisional contract, at 1,390,000 €. The buyer, a French industrialist, plans to transform its Provençal interior into a contemporary space. From the third quarter of 2008 to summer 2009, demand for holiday homes was pretty sluggish. Lower interest rates and the easing of mortgage conditions justify renewed optimism for the year 2010. New properties are doing relatively well : Scellier tax incentives are bearing fruit. The developments “Le Belvédère” (IMC2), “Colore di Mar” and “Miti di Mar” (Patrignani) are proving to be rather successful. Of course, today’s investors are focusing more on a sound investment for the future than on immediate profitability.
“Like Le Rayol-Canadel, Gigaro, on the commune of La Croix-Valmer, attracts a specific category of clients, particular about their choice,” notes Agnès Malecki of the agency of the same name. Ready to pay at least 800,000 €, they appreciate the privacy and natural greenery. Some properties here, depending on their location and layout, can attain 4 to 5 million euros. Near the beach, they are snapped up at awesome prices. However, the bulk of transactions ranges from 1.5 to 2.5 million euros, a budget bringing living space of 160-180 m2 and gardens of 2,000 m2. With no equivalent on the Cavalaire side, Gigaro is clearly the chosen neighbourhood of the well-heeled.
“Prices naturally rise as one gets closer to Saint-Tropez,” confirms Jean-Louis Darnis of Darnis Immobilier. Close-ly structured at legislative level, the sale of an apartment runs limited risks. On the other hand, houses really call for professional assistance. This estate-agent lists no fewer than 18 important criteria influencing the price. Based on an analysis of 230 transactions over the last decade, 75 % concerning building land and villas, he comes up with a very positive finding. The 70-75 % of holiday home-owners, either French or foreign (30 %), are hooked on the sea, sun, the protected environment and good level of security. To such an extent that mobility remains very low. The “Domaine de Barbigoua”, for example, 450 properties built in the 1960’s, reports sales of only 25 % over the last eight years. On both communes, there is an evident shortage of available properties, especially as owners, rarely desperate to sell, except perhaps the British, are quite prepared to postpone their sale while waiting for better days. From 1999, prices rose steadily, doubling at least, in ten years. In 2007, Darnis chalked up his best season since the agency opened its doors (in 1988). In 2008, everything slowed down. Despite an irregular pace, 2009, compared to the previous 12 months, brought 6 % more mandates, 30 % more provisional contracts signed, and a15 % increase in revenue. At the same time, the value of outstanding properties and building plots rose by 5-10 %, whereas prices for villas and apartments not entirely free from defects dropped by about 10 %. In the worst cases, the crisis led to a decline of 15 %, very relative when one thinks of the earlier boom of 130-170 % in the market for houses and that of 300 % observed for building land.
“What investment other than real-estate could possibly generate this kind of profit ?” asks Jean-Louis Darnis.