Having trouble paying the mortgage? Average price of a five-bedroom house in the Cote d'Azur reaches £18m as the world's 'super-rich' snap up luxury homes

  • Rich investors still favour the sunny climes of the French Riviera
  • But study by property magnates shows sales levels remain below peak
  • The market is being fueled by newly rich from Bric economies

By Stuart Woledge

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The Cote d'Azur remains the top destination for the super rich to splash out on a second home, according to a leading property developer.

The second bi-annual Candy GPS Report has revealed there was a 34 per cent jump in the number of individuals worth $30 million (£18.7 million) between 2009 and 2012, many of them hailing from the emerging Bric economies of Brazil, Russia, India and China.

And they are continuing to invest in the luxury properties available in traditional destinations such as the South of France, Italy and the Caribbean.

Second home: The French Riviera remains a popular spot for the super rich to buy a second home

Second home: The French Riviera remains a popular spot for the super rich to buy a second home

Speaking to the Daily Telegraph, Nick Candy, joint owner of the world's most expensive residential apartments at One Hyde Park in London, said: 'Property is simple: it’s about supply and demand.

'In the Cote d’Azur there are huge planning issues and restrictions. You can’t just build houses.'

 

The report, produced by Candy & Candy, Savills World Research and Deutsche Asset & Wealth Management, revealed that the price of a typical five-bedroom property in the Cote d’Azur exceeded $17.9m ($28.5m).

And while the majority of buyers come from the Middle East and Russia, it also remains popular with the super rich from Europe and North America.

Below peak: Transactions on the Cote d'Azur remain down from their peak in the wake of the Eurozone crisis

Below peak: Transactions on the Cote d'Azur remain down from their peak in the wake of the Eurozone crisis

But while the destination remains beyond the reach of most ordinary people, it did not avoid the eurozone crisis.

The report concluded sales remain 'well below' peak levels, as property owners hold on to their investments.

MILLIONS TO SPARE? TOP 20 MOST POPULAR AREAS WHERE THE SUPER-RICH BUY A SECOND HOME

  1. Cote d'Azur, France, (average price of five-bed home £17.9m/$28.5m)
  2. Costa Smeralda, Italy, (£7.2m/$11.5m)
  3. St Barts, St Barts, (£8.8m/$14m)
  4. Aspen, USA, (£8.2m/$13m)
  5. Monaco, Monaco, (£15m/$24m)
  6. Barbados, Barbados, (£14.4m/$23m)
  7. St Moritz, Switzerland, (£5.3m/$8.5m)
  8. Seychelles, Seychelles, (£5m/$8m)
  9. Maldives, Maldives, (£3.75m/$6m)
  10. Lake Como, Italy, (£5.6/$9m)
  11. Monterey Peninsula, USA, (£6.9/$11m)
  12. Gstaad, Switzerland, (£4.4m/$7m)
  13. Emirates Hills (Dubai) UAE, (£5m/$8m)
  14. Verbier, Switzerland, (£6.3m/$10m)
  15. Palm Beach, USA, (£5m/$8m)
  16. Vail, USA, (£7.5m/$12m)
  17. Venice, Italy, (£3.1m/$5m)
  18. Malibu, USA, (£11.3m/$18m)
  19. Courchevel, France, (£4.4m/$7m)
  20. Canouan, St Vincent & Grenadines, (£3/75m/$6m)

The area was also hit by President François Hollande's threat to hit high earners with 75 per cent tax, which led to a fall in property prices of 10 per cent.

The report claimed prices had now stabalised after the tax plans were 'probably less draconian than originally feared'.

And the Cote d’Azur is expected to continue to be a firm favourite, as demand outstrips supply.

Other top spots include Sardinia’s Costa Smeralda and Monaco.

Mr Candy said: 'Traditional is still the favourite and it will stay like that. It will take a lot for people to move.'

Referring to the emergence of new destinations, he added: 'There are lots of new places, such as Dubrovnik in Croatia, but the traditional places have the big events, such as the Cannes Film Festival.

'Places like that have homes worth £100m to £300m. I think that will continue.'

Outside of Europe several Caribbean destinations, such as St Barts and Barbados, remain in the top 20 list.

St Barts ranked third overall, where prices held firm due to short supply, while in Barbados, placed sixth, a high number of British buyers are said to be investing.

Winter spots such as US ski resorts of Aspen and Vail, and France’s Courchevel also ranked highly, as did Switzerland’s premier resorts of St Moritz, Gstaad and Verbier.

Top spot: Properties such as this in Sardinia's Costa Smeralda can go for a small fortune

Top spot: Properties such as this in Sardinia's Costa Smeralda can go for a small fortune

Highly rated: Across the pond in the US, the Aspen resort in Colorado is still an attractive option

Highly rated: Across the pond in the US, the Aspen resort in Colorado is still an attractive option

The report said buyers from Russia were a 'key driver' for many of the 'traditional' destinations. But those with newly acquired wealth in the Far East prefer to invest closer to home.

Wealthy buyers from Asia and Australasia are buying second homes in the Thai resorts of Phuket and Koh Samui, Indonesia’s Bali and Niseko in northern Japan.

Topping the list for the preferred destination of Asians to own a second home was the Maldives.

Mr Candy added: 'In the same way that we have seen exponential real estate growth in global cities over recent years, we expect to see the same level of growth and property values replicated in the top luxury leisure enclaves where the world’s super rich are choosing to purchase additional homes.'

Far East: Asia's super rich are buying in places such as Phuket, where this property was valued at £5 million

Far East: Asia's super rich are buying in places such as Phuket, where this property was valued at £5 million


The comments below have been moderated in advance.

Beautiful houses, but my home is where my family is and the area that meets our needs.

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Gee thanks for reminding us of the financial divide between us and them...you made my weekend.

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Nice to see where the Russians are spending all our "gas money".

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If you'd pay £5 million for ANY property in the filthy, overcrowded hole called Phuket, you need your head examining. The climate there is even worse than other parts of Thailand (rains so much), prices of food etc. are even double Bangkok and it's full of trashy tourists.

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Didnt see Bradford in the list!

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£18 million? suggest you look again, the property over there go up to £40,645,587 yes, £40 Million, and there are plenty more around that price too, 18 Million is one of the cheap ones.

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Someones having a laugh. These are not worth more than 750K even with the views

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Money can't buy you happiness or being poor causes you to lie. I am not sure which is true, but I have a good idea.

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Watch out, that woman on benefits with all those kids will think its her god given right to have one. Wonder which one she'll choose!!

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It's close enough to home and far enough away as well.

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