PL40 – May 18th 2004.

Posted by admin in Property Letters | May 18th 2004

Dear All,

Film Festival.

We are in the busiest two weeks of the year, and I am pleased to say that for us this year that represents 43 apartments full of very happy delegates.

It really is a spectacle because Cannes is absolutely alive for it. The town is looking pristine with beds of every imaginable bloom at their best, and it is so clean! The people are exuberant, the bay is full of exotic boats and yachts, and the Bentleys, Lamborghinis and Ferraris vie for space along the Croisette. Bands play on the stages erected along the front, and screenings of hundreds of films take place according to a rigorous timetable in dozens of auditoria all day but the most accessible are those that are screened every evening on the beach. One can watch those from beach loungers on the sand.

Last year the Festival was considered a little disappointing, mostly due to frosty US / French relations after Iraq, but this year the Americans are back! Quinton Tarrantino (producer/director) is the ‘main event’ I gather, but also in town are Brad Pitt and his Jennifer Aniston, Tom Hanks, Sean Penn, Eddie Murphy and Cameron Diaz, to name a few. Everyone we have spoken with says it’s a really good year. There are 60 000 or more delegates from every walk of the film industry and our clients are bubbling over with enthusiasm for the atmosphere and what Cannes has got to offer.

All this is such good news for us because the Film Festival is very important to Cannes’ economy and its image and fortunes around the world. Our own small sample of guests comes from the USA, Britain, Canada, Brazil, Ukraine, Japan, China, Australia, Argentina and South Africa and numbers are way up, accommodation is at a premium, and everyone is having a lot of fun, along with a good measure of business success. Heady mix!

All this bodes well for our business here and we are very pleased.

The Market.

We have seen better capital growth than we expected for the last two years here, and we expect the trend to continue, especially with the raised feeling of optimism which is palpable.

We continue to specialize in rental properties close to the conference facilities and beaches of Cannes, because that is what most of our investors are looking for. And that is what brings them in the returns they need. However it is not easy to source suitable apartments at the moment. Prices being asked are high, and the product is not keeping up with demand. We have lost a few really good properties recently – two just last week when the sellers took the properties off the market at the last legal minute. We had already signed agreements of purchase! It was very disappointing, but they obviously calculated that they could profitably rent them for the summer and then put them on the market again later this year at a considerably higher price. They were right of course, but for us and the buyers it was a blow, and it is not easy now to find similar properties as replacements.

We also have an increasing demand for more substantial apartments and villas for holidays and family pleasure, and less directed at the rental market – or for a mixture of both. This is such a beautiful part of the world, with wonderful weather, and the lifestyle is really one of the best in the world. People fall in love with it easily, and want to come back again and again and who can blame them?

The property market is so strong. Demand is high, and optimism and enterprise here are boundless.

We have a few more properties which we can recommend….and some are still begging to be snapped up depending on your budget and your intentions of course. Please don’t hesitate to write to me or phone me if you want to talk about specific properties or the market in general.

With best regards from us all,

Guy.

PROPERTY REVIEW.

Please note that the prices that I quote are asking prices. If a property interests you I can provide you with more information, photos, and financial analysis. Often we can achieve some reduction in the price once we begin negotiations.

“Living space” always excludes balcony/terrace, built in cupboards etc.

Rue Jean Cresp.
A ground floor apartment in Palm Beach, it has parking, a cellar and a terrace, but the most interesting thing about it is that it can easily be split to make two apartments – a studio and a one bedroom apartment. It is in fairly scruffy condition and needs to be refurbished, so I would immediately divide it into two income earning units. It already has the two bathrooms and toilets, electric shutters throughout, and a guardian in charge of the upkeep and tidiness of the building. The price is attractive and the rentability in this area is proven.
Living space – 63.37 sq.m.
Asking price – 243 800
Price per sq.m – 3847
This apartment was “bought” two weeks ago by somebody local and I discovered yesterday that his credit application had been refused so it is back on the market. It will not be for long.

Palladium.
A spacious studio apartment in Rue Commandant Vidal, it is absolutely empty but refurbished very nicely. It is on the first floor of the building (le Palladium) and overlooks the street from its spacious balcony, and Rue d’Antibes just 20 meters away. Beyond Rue d’Antibes one looks through a big arch at the Croisette and the sea. (a little view but pleasant). The refurbishment includes a completely equipped new kitchen and bathroom, and air conditioning. Its position of course is excellent for all rentals, being right in the centre. Our main concern was noise from the street below, and I questioned the seller as to why he had done such a good job of refurbishment but left out double glazing all the sliding front of the apartment. He immediately undertook to do the double glazing as included in the price. So take that as done, and that largely solves the noise issue (one can shut it out). Furnishing an apartment of this size to a good quality will cost about 6000 euros.
Living space – 33 sq.m.
Asking price – 174 900
Price per sq.m. – 5300

Rue Pasteur.
Take note of this one, and don’t expect it to sit for long on the market.
This is a most unusual two bedroom apartment right in the centre, overlooking Rue d’Antibes but with its entrance around the corner in Rue Pasteur. It is a duplex (3rd floor) so one enters the spacious and light living room with a lovely open kitchen. There is a spiral staircase which leads down to the level below which is not like a normal floor at all in that the ceiling is not as high as it would be on a conventional floor, (the tallest person I know will still walk upright with inches to spare) and the windows are square, about a meter wide and high, and set almost at ground level.
This level traverses the building and comprises two very spacious newly carpeted bedrooms, a passage linking them, and an attractive bathroom off the passage, with generous cupboards. The whole apartment has been refurbished and is furnished (included in the price) very nicely indeed. It is comfortable and homely, with character and a different feel about it. Vicky was not that taken with the new coir (is that how you spell it?) fitted carpeting on the living room floor – it still smells a bit of new coir. I didn’t mind the smell, reminding me of coir matting at home, but anyway it can so easily be changed for carpeting or even tiling if one wanted to. The narrow balcony off the living room overlooks Rue d’Antibes.
This apartment is ready to go, in the centre of Cannes.
Living space – 67.53 sq.m.
Asking price – 243 800
Price per sq.m. – 3610

I refer you back to Property Letter 39.
Le Suquet – sold
Pomme d’Or – sold
La Brise – sold
Villa Lerins (115 700) – is still available. Good little apartment.
Rue de Canada (162 000) – still available. This is a very good apartment – very good position.
The Office (160 000) – is still available – incredible price. It needs imagination and to see past the office setup existing – great potential for capital improvement. Fairly costly renovation required – 60 000?
Proximite Miramar – sold
Reine Astrid (405 000) – this is still such a good option for someone wishing to have a comfortable second home, but able to rent very well too. The reason it doesn’t sell is that the owners are not motivated sellers, are never here as they live inland, and as it is their second home visits can only be organized if they are in town – and they won’t leave the keys!
Rue Meynadiere – don’t know.
House in Le Suquet (495 000) – is still available. Charming in the extreme, but a challenging purchase to organize and furnish.

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