French riviera values plummet

Experts have stated that the value of some of the über-expensive properties along the French Riviera have significantly dropped to less than a tenth of their value from one year ago, according to an article on Telegraph.co.uk...

In 2008, one Russian billionaire tried to buy Villa Leopolda, a luxury property, for around £450 million, which would have made it one of the most expensive properties of all time.

However, the sale collapsed and now the property in Cap Ferrat is unlikely to receive any offers over £30 million, according to Alexander VG Kraft, Chairman and CEO of Sotheby's International Realty.

Mr Kraft believes that these super expensive properties are now more likely to receive offers more in line with those of luxury properties in other parts of the world, around £20-£30 million.

It is thought that the Russian billionaire's decision to withdraw his offer was a shrewd one, as values of properties in the Cote d'Azur will never command such an amount again.

Mr Kraft said, "For trophy properties it used to be a question of how much someone was willing to pay. They would come quietly onto the market - they would be marketed under the table. This system really has totally collapsed. Buyers willing to pay anything like those sums just don't exist."

British buyers are also far more reluctant to invest due to the combination of the weak pound and an unstable UK property market. There are deals to be had though, as owners of the properties settle for less than half the original value in some cases by panic selling in a desperate bid to raise cash.

Source: www.hotproperty.co.uk