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Cannes: the Croisette, Palm Beach... Where to buy ?
After five years gloomy years in the property sector on the French Riviera,
After five years gloomy years in the property sector on the French Riviera, and a natural disaster late in 2015, a slight improvement is beginning to make itself felt. For those of you intending to invest in Cannes, here is an overview of the most sought-after neighbourhoods and the types of property most in demand in the town.
Winds of change have at last been blowing along the Croisette in recent months, after five years of declining sales and the floods of October 2015 which brought the town to a standstill for several weeks.
The market is just beginning to pick up again, notably in the prestige segment, while the more affordable areas are not yet attracting future buyers.
Without question, it is villas with sun-drenched pools and a sea-view over the Mediterranean that are currently lending a boost to sales in the town.
La Banane, Cannes’ prestigious residential area
These luxury villas are principally located in the heart of the area known as « La Banane », situated between the port and the Croisette.
Buyers are returning to the most desirable neighbourhoods – which are called « California », « Palm Beach » and the famous Croisette. The French clientele is well represented, but significant numbers of foreign buyers are also being drawn to the area. Many Italians in particular are looking for second homes for the summer.
Even if the market is not yet growing, (it is in fact currently characterised by stagnating prices), the sector is showing signs of recovery, with transactions going through more quickly, in some cases in fewer than 45 days.
Premium rental prices during the Festival
In these popular areas of Cannes, square metre prices sometimes match those in Paris, between 4,500 and 9,000 euros. In certain neighbourhoods, such as California, prices even exceed this range, with sales going through at between 6,500 and 13,000 euros. In this respect, the Croisette of course tops the ranking, with square metres there being traded for up to 35,000 euros for certain prestige properties.
For buyers seeking quick returns, purchasing a small flat in La Banane and renting it out as a furnished holiday property can be particularly profitable, especially during the Cannes Film Festival which takes place in early May.
Every year at this period, demand for short-term rentals goes through the roof, and these properties are let out at extremely high prices, as long as the apartments in question are furnished to hotel standard and situated in a well-kept area.
If all the conditions are satisfied, a small, well-located and well-maintained flat can earn its owner between 9,000 and 10,000 euros per week.
Popular neighbourhoods soon to undergo redevelopment
Some areas remain more affordable. For example, it is possible to acquire a square metre on the Boulevard Carnot for between 3,500 and 4,800 euros, while in the République area, square metre prices do not exceed the threshold of 3,800 euros. Farther west, in La Bocca, a budget of 2,200 to 4,400 euros per square metre will suffice.
These neighbourhoods are perfect for young professionals or first-time buyers who can purchase a two or three-room property for 200,000 euros. With falling prices and low borrowing rates, it is often cheaper to buy rather than rent small properties in Cannes.
And for those who are in no hurry to sell, buying in La Bocca could prove to be a high-risk but shrewd investment: in coming years the district is due to be restructured, with the construction of a multiplex cinema, a new university (the « Harvard of La Bocca » according to the local press) and a new bus line.
After several difficult years and sometimes hostile climatic conditions, Cannes is at last picking up a second wind. The town’s authorities are eager to stimulate the local economy, and initiatives planned for the coming years look promising.
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