With its sales and rentals, luxury real estate and its prestigious properties, extraordinary penthouses, contemporary villas, Provencal bastide houses, or Belle Epoque properties, is back as a prime player on the real estate market. Magrey & Sons provides you hereafter with a brief summary of the causes and reasons of this renewal with, in addition, a scrutiny of the market in Cannes!
Luxury micro-markets on the French Riviera, such as Cap Martin, Saint Jean Cap Ferrat, Cap d’Antibes, Mougins, Théoule, from Agay to Saint Tropez, have all been impacted by the disappearance, these last 3 years, of Russian and Eastern European clients, and the Cannes market was no exception!
The beginning of economic recovery has many causes, among which favourable exchange rates of currencies such as US Dollar, British Pound or Norwegian Krone. Another cause for this recovery is the historically low interest rates. But the main reason for this economic rebound lies in the fact that sellers and purchasers understood their common interest and get along as for prices, even if there is still a difference between asking price and selling price.
The recovery will not be identical for everyone, since clients are more demanding when the market is in a state of tension, and this is a normal thing that getting out of the “crisis” is a process that is staggered over time and that depends on the type of property. There used to be a time when the markets were flourishing and when anything and everything was sold. Now that this period is over, one just has to look at the recent sales in Cannes to notice that Rule #1 of luxury real estate, that is location, applies again.
Now, our very high-end micro-markets attract a wide range of customers, including a “broader Middle-East” being undoubtedly number 1 client. Recent events worldwide, due to terrorism, reinforced the will of our clients to come and secure part of their assets in our region. And thanks to a strong purchasing power, they buy the most exceptional properties on the market!
No matter where our clients come from, the purchase criteria remain the same: address, panoramic view, beautiful architecture, no nuisances, of course in excellent condition and potentially furnished. You will easily understand that with such criteria, a major part of our offers is set aside, waiting for the purchasers to reinforce their trust, month after month, as the recovery is confirmed.
As for the Cannes market, and in particular the apartments, La Croisette remains number 1 request, and some of them have been recently sold up to €45,000/sqm with an average selling price of €30,000/sqm. The marketing of Residence 7 Croisette, a building facing the Festival Palace, was a true success, with average selling prices of €35,000/sqm. The tip of Croisette promenade (“Pointe Croisette”) and its Palm Beach area is in good shape, even if there is a huge difference as regards price per sqm, varying depending on the building in which the apartment is located. The most prestigious building remains Le Marly, where prices are also very high, with average prices of €20,000/€30,000/sqm depending on the floor and the quality of the renovation.
The second luxury market for apartments is the Californie area, and more specifically Avenue du Roi Albert. Despite aging properties, the main residences are for sale from €10,000 to €14,000 per sqm, with special mention of 87 Soligny, the last hyper modern residence, offering remarkable finishing. This summer, 4 units (out of the 9 apartments for sale) in this residence have been sold, and the average selling price exceeds €17,000 per sqm…
Activity of other micro-markets of very high-class apartments, such as “Lower Californie area”, “Croix des Gardes”, or “Residential Cannet”, has been insignificant, and our sellers will have to wait for the recovery. In this market as well, the scarcity of clients, together with demanding criteria, led to a situation of natural selection of the historically most demanded micro-markets, such as The Croisette Boulevard as for apartments, and the Caifornie area as for villas.
As regards the villas, even if there are fewer sales, some are noteworthy as their quality is similar to the pre-2012 period!
Sales occur in the residential areas of La Californie, such as the “Corniche du Paradis Terrestre” area, with 2 sales for 5.5 Million Euros and 6.3 Million Euros for small surface villas (270 sqm and 300 sqm) compared to selling prices. It is to be noted that these two sales reflect the “high quality” trend of the current sought-after properties.
On the contrary, some areas, much sought-after when the market was dynamic, have been deserted by purchasers, such as “Chemin des Collines”, “Residential Cannet”, and a large part of “Super Cannes” and “Cannes Eden”. The “Croix des Gardes” area is no more popular, but keeps its attractiveness thanks to exceptional properties for sale on the French Riviera,such as, for example, “Croix des Gardes Castle” for 90 Million Euros!
Simultaneously with this ”location first” trend, it is worth noting some completed or pending sales for unique properties, such as this 13 Million Euro sale for a renovated property set on large landscaped grounds at the top of the hill, as well as a couple of surprises to come which will boost our selling stats.
As a conclusion, the market went through a period of significant depression, but is now showing positive signs of a business recovery!
Wintertime is a propitious moment for thoughtful investments, and Magrey & Sons team will help you find some unique opportunities…