Cannes real estate steals the festival spotlight

The Cannes Film Festival is without a doubt the biggest event on the French Riviera each year. In 2013, more than more than 30,000 film industry professionals flocked to the city for just two weeks. While producers are selling their works to distributors from around the world in the Cannes Marketplace, though, a growing number of film companies are starting to invest in something else: real estate.

Rising hotel and rental accommodation costs in Cannes are pushing more people in the film sector to buy property in the city to avoid wasting money on expensive rentals, according to Athena Advisors. Indeed, the price for four and five star accommodation increased by 16 per cent over two years (2010 to 2012), according to the Cote d’Azure tourism board and by an estimated 5 per cent in 2013.

“Some film companies send out dozens of employees each year with many staying for up to a month to prepare,” explains Nicholas Leach at Athena Advisors.

“Film stars buying in Cannes is nothing new as many have the means to do so, but film companies investing in the area is a growing trend. Just for executives accommodation costs can reach well into the €100,000’s so if you spread those costs over 10 years or more, investing in real estate starts to make real sense.”

“The companies who buy in Cannes normally use the property as a company retreat throughout the year for its employees and clients,” adds Leach. “Most company purchases take place well above the €1m mark, with apartments close to the Palais des Festivals and large villas just outside the city being most popular.”

Cédric Le Piffer, Associate Director of French agent Immocoach, told TheMoveChannel.com last year that Cannes is a prime rental market during such peak periods.

“It is very difficult or impossible to find any vacancy in hotels or apartments for rent when you haven't booked," he warned. "The most-wanted villas and apartments have to be booked one year in advance!"

A one-bedroom apartment in a residential hotel, 100 metres from the Palais des Festivals, for example, could cost €600 per week in June. A month earlier mid-festival? "€6,000."

Athena is currently launching a string of two-bedroom apartments in Cannes and has already seen high demand for the units.

“New-build properties are very rare in Cannes, especially along the Croisette promenade,” continues Leach, “which makes these two bedroom apartments unique to start with. Combine this with the fact that they’re overlooking the Palais de Festivals and it’s easy to see why they were so popular.”