From the Old Town to the expressway, the heart of Nice, now crossed by Tramline 1, lies on both sides of Avenue Jean Médecin. Encompassing localities characterized by remarkable variety, it is shared by locals and foreign holiday-makers. Basic ingredients for a sound investment...

When the crisis hit the world of international finance and, consequently, worldwide real estate, the capital of the Alpes-Maritimes was proudly inaugurating its tramway and the new Place Masséna, a well-designed nerve-centre for the town. The people of Nice have since rediscovered the old pleasures of strolling around town, while well-known stores take a share of the cake. A breeze of rehabilitation is blowing through the surrounding neighbourhoods.

Within this central perimeter, Moïse Vergeot of Orpi Immobilière GTI distinguishes five sub-sectors. To the south, the aptly-named “Carré d’Or” (or Golden Square) proposes properties ranging from 4,000 to 7,000 €/m2. On the other hand, the area defined by Boulevard Victor Hugo and the railway bridge is marked by sharp differences in terms of both price and prestige. Bearing price-tags from 3,000 to 5,500 €/m2, it can be compared in many ways with the neighbourhood on the east side of Avenue Jean Médecin, between Boulevard Dubouchage and La Libération, though 80 % of transactions here do not exceed 4,500 €/m2. The south-western part of the centre, around Félix Faure, is more up-beat, just like its shops, in fact. At 2,800-5,500 €/m2, it provides opportunities for those who can’t afford the Golden Square, especially on Rue Gioffredo or the Rue de l’Hôtel des Postes. Also in the centre, the Old Town of Nice refuses to comply with any rules. The lack of parking facilities, elevators, and sometimes even light, does not detract from the charm of its buildings. Apartments in need of renovation cost around 2,500 €/m2, though immediate proximity to the sea and Cours Saleya will up the price to 5,000 €/m2. According to fans of the heart of Nice, its pleasant, convenient location compensates for its noisiness and chronic parking problems. However, question- marks remain, including the route of Tramline 2 and the short-term impact of the heavy construction work involved.

After picking up early in 2009, the market reported a satisfactory cruising speed in June. Overall, 50 % of the transactions recorded concern main residences, 25 % secondary homes and 25 % rental investments. The latter are doing well : net profitability attains 4 to 4.5 % and capital gains are guaranteed over five years. “The recent economic turmoil has had the salutary effect of moderating prices and jacking up estate-agents’ professionalism,” comments Hervé Melili of Era Carré d’Or. As well as mastery of technical and legal parameters, it involves an Anglo-Saxon style approach to service and expertise in the fine art of estimating. Here more than elsewhere, prices vary significantly depending on individual streets, buildings, floors and appointments. Handsome bourgeois buildings, the prerogative of this part of town, appeal to senior citizens who appreciate their spacious proportions, high ceilings and architecture typical of the first few decades of the 20th century. Retirees, often used to living in neighbourhoods designed by Haussman in the Parisian region, are apparently ready to give up on-site parking facilities and terraces worthy of the name, offered by residences built 25 to 30 years ago and preferred by locals working in town. Among recent transactions, Hervé Melili mentions an apartment of 98 m2 awaiting restoration in the Musiciens neighbourhood, on the corner of Rues Rossini and Berlioz, which exchanged hands for 350,000 €, a studio in the highly-prized “Carré d’Or” sold for 125,000 € and a 1-bedroomed apartment of 40 m2, opening out to a garden of 100 m2 towards Place de la Libération, for 200,000 €. Together with Place Joseph-Garnier, this area, well-known for its street market, is seen as having reaped the greatest benefit from the tramway. The Niçois are enthusiastic about the address and applaud the impressive rejuvenation which has recently been undertaken. The same cannot be said of Gambetta, where a 2-bedroomed apartment of 75 m2 finds a buyer for 225,000 €. Hervé Melili notes with regret the increasing rarity of 1-bedroomed apartments extended by terraces, costing up to 300,000 € and in very high demand.

Barbara Pietra of Cosmopolitan Real Estate mainly handles properties in the “Carré d’Or”, ie. the neighbourhood defined by Rue du Congrès, Avenues Jean-Médecin, Verdun and Victor Hugo. The departure of the British, suffering from the very low exchange rate, created the first shock-wave. The official declaration of the crisis in autumn 2008 drove the nail home. Some owners, not really needing to sell, took their properties off the market due to the lack of any prospects for good alternative investments. Fortunately, Scandinavians and Italians are replacing the Brits, the first looking for apartments with three main rooms, the second aiming for studios or 1-bedroomed apartments near the sea, which they use themselves or offer for rent. Foreigners, representing 80 % of the agency's customers, and French clients from outside the region, accounting for the remaining 20 %, are fond of Rue de France, much less expensive than the Promenade des Anglais. They are tough bargainers, with budgets between 450,000 and 1.2 million euros, and pay cash for properties in the 5,000-7,000 €/m2 range. Quality, a rare criterion, is a valuable asset, with demand still outstripping supply.