After 18 months of crisis, destinations as exclusive as Saint-Tropez provide an excellent barometer for assessing world economic health. Estate-agents examine the various market segments, define the clientele and present major trends.

In the 1950’s, thanks to members of the New Wave and the “Yéyé” generation, the fishing village acquired an aura which has remained unchallenged ever since. Discovered by Signac and subsequently frequented by Bonnard, Matisse, Marquet and the sculptural Bardot, this charming village in the Var then became accustomed to flashy rhinestones and glowing tans without ever disowning its wild environment and exuberant nature. Its hotel offering, unique for a commune of only 5,650 inhabitants, now boasts two “palaces”, eight 4-star and eleven 3-star establishments, while the harbour has retained its colour and authenticity. A special kind of alchemy which the jet-set from all four corners of the world returns to enjoy each and every summer. Some opt for quiet family holidays, others prefer the festive version : they all rub shoulders in relative harmony.

“If one compares the first halves of 2009 and 2010, the number of transactions is the same, despite a later start this year, due to a harsh winter,” says Peggy Bancquart of Guy Hoquet L’Immobilier. Diverse and varied, demand focuses on villas with a sea view in the 2.5 to 3 million euro bracket. Unfortunately, this category does not exist ! Many buyers are looking for studios in good locations under 200,000 € or a 1-bedroomed pied-à-terre in perfect condition from 350,000 to 450,000 € or, on the other hand, an exclusive apartment of over 100 m2 facing the Med from 1 million euros, a rare commodity, or townhouses to renovate around 2 million euros, products equally difficult to nail down as they are immediately snapped up by property dealers. Between prices posted and those actually paid there is a difference of about 10-15 %. Holiday home-owners, representing a large majority, and French more often than one might imagine, intend to reap the harvest of a summer rental. The Italians are still very fond of the historic heart of town, whereas Belgian and British retirees spend several months a year in Saint-Tropez. For these individuals, as for investors who have recently begun to set their sights on bus-iness premises, a prime location is the golden rule. “With no particular view or without a terrace, apartments cost from 10,000 to 15,000 €/m2. Located on the harbour, they can rise to 20,000-30,000 €/m2, depending on their condition and appointments. This type of property, in constant demand, is very hard to find,” says Romain Favelier of Burger Sotheby’s International Realty. The address naturally influences the price.

For example, a property of 250 m2, a surface area that could be doubled should the purchaser so desire, set in flat grounds of 5,000 m2 facing the sea, costs 3 million euros across the Gulf in Beauvallon. An identical residence in Le Capon or Les Parcs de Saint-Tropez will sell for 10 to 14 million euros, 15 million as soon as it offers living space of 450 m2, or 7 million if it does not offer a sea view. In 2009, the stock of available properties increased : unfortunately, their owners are not very flexible. This season, it would be profitable to both parties to find a meeting ground, a step that would hail a market recovery, without necessarily guaranteeing it.
“In the 5 to 15 million euro bracket, negotiations are tough. However, last winter, to the surprise of local estate-agents, a few transactions were concluded at prices beyond 30 million euros, signalling the return of East European buyers,” say Jean-Luc Courbet and Nicolas Janow of the group Segur Partners Investment & Real-Estate, with offices in London, Paris, Saint-Tropez and soon in Geneva. Handling a portfolio of buyers and sellers of hotels, this specialist responsible for the recent sale of La Bastide Rouge also mentions private funds on the lookout for opportunities in the French capital and on the Côte d’Azur. Before the crisis, clients were willing to buy at prices above a property’s profitability threshold, counting on rapid and constant progression in terms of hotel occupancy. Today, they are selling at prices 30 to 50 % below the levels witnessed three years ago. Insiders in fact expect that we will have to wait until 2013 to see a full recovery of tourist activity.