International market trends: Côte D’Azur & The French Alps

Côte d’Azur has been popular with the British since the time of Queen Victoria. With beautiful countryside, azure blue seas and fantastic weather it is clear why. The increased accessibility offered by low cost airlines means a second home here is an easy reality.

Currently 160,000 British nationals live on the Côte d’Azur and a growing number of British people own at least two properties in the South of France.

According to FNAIM (Fédération Nationale de l'Immobilier), the south-east of France – including Languedoc-Roussillon, Provence and the Côte-d’Azur – is currently the only place where property prices in 2006 have risen at similar rates to those seen in 2005 (from 9.3 per cent last year to 10.3 per cent in the first quarter of 2006). Similarly, Credit Foncier bank reports that prices have been increasing steadily over the past few years, peaking at an increase of 16 per cent at the end of 2005.

New build properties are increasingly popular with UK buyers. Along with stories of astronomical refurbishment costs for older properties the merits of quality, hassle-free new property comes to the fore. Projects with low maintenance costs in coastal towns and cities offer real sound investment potential. New build properties in France also have similar guarantees to that of the UK and are built to comply with modern regulations.

Rental market

According to the bank Credit Foncier, the rental market is becoming a more attractive proposition due to increasing demand and poor supply of good quality properties in the area. The increase in buy-to-let transactions confirms this trend. Long summers and mild winters make the area attractive for all year round rental possibilities.

Average price in Euro per m2 for 2006 are detailed below. The figures in brackets show the percentage variation from 2005:

Towns / Studio / One bedroom / Two bedroom / Three bedroom / Four bedroom

Antibes / 16.7 (+7.3%) / 13.2 (+3.2%) / 11.5 (+7.2%) / 10.0 (+0.9%) / 10.1 (-5.6%)

Cagnes-sur-Mer / 15.7 (+13.7%) / 12.4 (+0.9%) / 9.2 (+5.2%) / 8.8 (+7.8%) / 12.0 (+5.2%)

Cannes / 15.3 (+1.6%) / 13.6 (+11.5%) / 12.4 (+5.4%) / 11.4 (+2.2%) / 10.7 (+7.8%)

Grasse / 13.7 (+6.6) / 9.8 (+8.4) / 9.2 (+10.9%) / 9.1 (+8.9%) / 4.0 (-)

Mandelieu-La-Napoule / 14.8 (+1.6) / 14.2 (+7.1) / 12.2 (+14.7%) / 11.4 (+2.8%) / 4.0 (-)

Mougins / 14.8 (-1.9%) / 12.5 (+7.4%) / 12.1 (+2.6%) / 12.8 (+4.0) / 4.0 (-)

Nice / 15.3 (+7.7%) / 11.8 (+6.7%) / 10.4 (+4.3%) / 8.6 (+1.8) / 9.1 (+3.7%)

Source: Nice Matin, 11/09/2006

Chesterton recommends...

Le Central Plaza, Cagnes sur Mer

Cagnes-sur-Mer is positioned in one of the most beautiful bays of the Mediterranean. The area is full of Provencal charm, especially the small medieval village on the top of the hill overlooked by the Chateau Grimaldi.

The development is ideally located in the centre of the town, only a 10 minute walk to the sea and close to all amenities. Le Central Plaza contains 84 apartments ranging from studios to three bedrooms. Each apartment boasts a terrace or balcony. There is opportunity for real capital appreciation at this development.

Completion is expected in Spring 2008 and prices start at £135,000.

French Alps

The French Alps as a dream destination needs little introduction. The area is renowned for its breathtaking scenery and world famous resorts. Chamonix has become a firm favourite with UK and Irish investors. Star spotting in Megève and its environs is now a popular additional activity to the excellent skiing and hiking! With excellent transport links (motorways, TGV rail links) and low cost flights to Geneva, the area is easily accessible.

Due to its popularity, this area of France can be an expensive investment. However there are many resorts where buyers can enter the market and enjoy what the region has to offer. In places like Combloux and Les Houches prices start from around €4,000 per m2 rising to €14,000 per m2 in the most exclusive resorts of Megève and Chamonix. The FNAIM figures for the region demonstrate that prices increased by 5.0% (apartments) and 6.2% (houses) at the third quarter of 2006.

Demand for new build property in the region is still high with quality property in short supply.

Rental

Due to the mature nature of the rental market in this part of France demand for good quality, well located property is always high. These resorts attract holidaymakers from all over the world. The FNAIM reports that rental price increase is steady, rising by 3.0% during 2006.

Chesterton recommends...

Les Chalets de la Tannerie, Chamonix

Positioned at the heart of the French Alps, Chamonix has been a favoured Alpine destination for decades. Chamonix has it all: excellent skiing, some of the best walking and cycling and a range of restaurants and bars that can fulfil any après-ski requirement.

The development is designed and constructed by one of the regions most respected developers. The Grosset Janin brothers have been creating dream alpine homes for three generations – Les Chalets de la Tannerie maintains this tradition.

Authentically presented, the development is made up of a chalet of three apartments, a chalet of two apartments and a bespoke stand-alone chalet. Each apartment of two, three or four bedrooms has its own terrace and spectacular views on the Mont Blanc and Aiguille du Midi.

Les Chalets de la Tannerie apartments are priced from £638,000.

For more information, visit chesterton.co.uk.