Press Release No.4 - 31st December 2008 - Summary of 2008
2008 represented our first full trading year in Cannes so we thought it may be helpful to produce a summary of the year. 2008 was a very strong year for the rental market in Cannes. It started with extremely high demand for MIPIM in march where rates of €700 per double room per night were very achievable. This demand reflected the on-going boom in global property markets, which, since the arrival of the credit crunch later this year may now be a thing of the past - more on this later. Demand for the Film Festival was also very strong. Despite a very strong euro against both sterling and the US dollar, all our bookings came from the UK and USA. The Festival seemed to be quite a success overall - high attendances and many deals being struck.
Summer was when we saw the first effects of the unfavourable exchange rate for UK clients with almost none at all coming in peak season. Instead we saw very high demand from northern European clients who made up the vast majority of our peak season customers. But what had been a strong year overall ended on a weaker tone with the stark realisation that the impact of the Credit Crunch would have far reaching implications to the overall global economy. Initial demand for the first half of 2009 remains strong with budgets already set and bookings already made well before the credit crunch struck. MIPIM for example, we are already fully booked at rates equivalent to 2008. We also just purchased our new, largest apartment at 17 Rue Meynadier. Work will shortly begin to converting this into a luxurious 3-bedroom apartment. More on this next year with a March launch date expected.
House prices in Cannes also enjoyed an incredibly strong year with large gains of 20+% on the year in central Cannes. The credit crunch has not yet deterred investors with the last quarter of the year being probably the strongest yet. This rate of growth will surely struggle to continue into 2009 though Cannes being Cannes will also see strong demand.