The Cannes Real Estate Market
The cherished town of Lord Brougham pulls through tough times, here we have a close look at The Cannes Real Estate Market.
A town of all sorts of festivals, Cannes never stops pulling in the crowds. Despite a calmer season than last year, the dramatic drop in the stock exchange, the increase of value of the Euro in comparison to the dollar and the effect of the war in Iraq has not affected the Croisette. It is not time to bury the Cannes property market.
One agency in the area explains the wait-and-see policy by another factor – the sellers are too excessive and continue to apply the same prices as two or three years ago. Unfortunately, things have changed and the acquirers are no longer prepared to invest these high amounts of money.
The awareness of this situation seems apparent to clear up this situation. The property agent has to prove reality and honest in order to stop the inflationist process. The market can be divided up by category – the very high and low categories are still selling well, only the medium and the high ones have trouble moving. However, professionals are still optimistic for the decrease of prices. ‘In London, Paris, Spain and in Portugal, the prices are coming down, Cannes should follow the same tendency”.
What about the prices?
For the rentals market, the high prices have certainly played in the decrease of occupation of these properties. A lot of them have not been rented during the Cannes Film Festival and throughout the summer. However, this causes no concern for the owners, as they can reduce this rent very quickly.
In comparison to the Parisian market, Cannes presents equivalent prices and rhythms with a similar type of clientele. On the Cote and in the capital, even through hardest of times, there are areas where prices never drop. More cosmopolitan and less exclusive than the Caps, Cannes possesses all aspects of a town, easy access and close to all commodities. Also we should note the quality of the hotels here. Finally, more prestigious than Nice, and less expensive than the Principality of Monaco, the congress city attracts a Northern European clientele (with some representatives of Eastern Europe) but also the Middle East. “With all of these advantages, it is advisable to evoke the security measures that are carried out by the police – video surveillance in the centre and the police rounds in the residential areas.
Locals find it hard to find accommodation, a phenomenon that has been occurring for a number of years, and have to leave the town for places such as Mougins, Grasse, Mouans-Sartoux, which are more affordable for them. A luxurious market, Cannes is a town made up of many holiday homes, with a slight part of people being there for long vacations.
A local agent claims that buyers are of a younger age, between forty and fifty years old. They are looking for both renting villas in Cannes and apartments. Here is a surprising point for the villas: La Californie, where you can not find anything less than 1,525,000 € is at the same price as the residential area of Le Cannet (minimum price 915,000 €) and Super Cannes (between 610,000 € and 2,290,000 €). In comparison, the starting price of Mougins is at 460,000€. Regarding the apartments, the top of the list are those on the Croisette (15,245 € per square meter) followed by the Basse Californie (7,630 €). For the larger units such as penthouses, always very demanded, clients should have a budget from 1,525,000 € and 3,050,000 €.
There is very little land for sale (from 450 € and 600 € per metre in Californie with a construction density of 5 and 8%). For the record prices, certain people claim a sale of an apartment for 6,100 000 €, a monthly property rental of 230 000€ and finally the closing down of the famous Villa Bagatelle (three houses located on two hectares of land) at 35,063,000 € last year.
The emotional factor counts for a lot in the price decision. Properties are bought for personal pleasure, which happens to be one of the wisest investments.