Press Release No.9 - 24th December 2011 - Summary of 2011
2011 was a strong year for the rental market in Cannes. With the global economy starting the year on a significantly better footing, businesses seemed happier sending employees to conferences in various industries. Demand for MIPIM (the property conference in March) was significantly higher than the previous 2 years, with most clients reporting back that it was also a very successful one. That same tone continued through MIPTV and the Film Festival. Summer saw the usual very high demand for apartments in July from Scandinavian clients which this year even spilled into early August. And then in the second half of August we saw strong demand from French clients who in recent years had decided on cheaper locations or quality of apartments but this year seemed more willing to spend for quality. September was extremely busy with the boat showed followed by the rescheduled Tax Free conference in late September (to allow for the G20 later in the year). Again, the improved sentiment in the business world could be seen in the strong attendance at the luxury goods conference. A strong MIPCOM finished off the season in October. The G20 was in the end a bit of a non-event. The stringent safety measures put in places seemed to put off a number of clients who enquired about accommodation during the period. In the end, Cannes was something of a ghost town with many shops not even opening during the period. Thankfully it all passed off without incident so the town can get on with "normality" for the rest of the year.
Prices for apartments in Cannes had a mixed year, as the number of transactions seemed to pick up significantly from recent years. Studios continue to appreciate at a remarkable rate as investors remain happy to invest at the lower price and risk end of the property market. They remain an extremely good investment for individuals with strong and relatively safe capital appreciation complimented nicely by the ever buoyant rental market. However there remain few investors willing to buy larger 2, 3 or 4 bedroom apartments so although the rental market for these assets is stronger than ever, the purchase prices in this bracket slipped around 10% in 2011. Obviously for those willing and able to invest in this category the rental yields are therefore becoming ever more attractive but for now this type of investor seems happier on the sidelines, perhaps due to the uncertainty surrounding the Eurozone debt crisis.
Being our 5th year in business means we are really seeing a strong and stable set of repeat business, particularly for the conference periods. It seems clients are as much in search of high quality, reliable apartments as we are in search of high quality, reliable clients. Repeat business again represented well over 60% of our turnover. And based on client demand, we have again tweaked our property portfolio, selling our last remaining studio apartment which we hope to reinvest in a new 3-bedroom apartment in 2012. And as part of our ongoing renovations project, our 2-bedroom apartment at 42 Rue Meynadier is currently undergoing a complete makeover with a new bathroom, kitchen, windows, flooring and painting. We have kept the neutral tones throughout and I think our repeat customers will be pleasantly surprised with the all new interior.