28th June 2019

Ultra-prime real estate

With micro knowledge of the super-prime and ultra-prime markets, we are closely observing what is happening in 2019 in London, Paris and New York as well as the French Riviera, the Hamptons, Ibiza and major Italian cities and Mediterranean coastal hotspots.

This past week I was in Saint-Tropez with our local partner, appraising the latest market conditions, looking at villas and identifying special opportunities, of which at least two are worthy of serious consideration.

Prices have fallen from their 2015 peak but even in the current buyer’s market a cautious approach needs to be taken. Saint-Tropez features two distinctly unparalleled locations in the ultra-prime category.

Asking prices remain high. However, nowhere near as high as they were in those heady days of four years ago when a record €57m euros was paid for a villa in Les Parcs.

Negotiating room in the current market is definitely in favour of the buyer, but we strongly urge against getting carried away with any opportunities in off-pitch locations. That is how mistakes can be made. Listen to sound advice, and trusted opinion and you won’t go wrong.

Ocean-front or a wide ocean-view is important, as is orientation and size of plot. Security has to be considered, as does the implementation of due diligence to ensure that any building works and improvements, both current and in retrospect, have been approved.

Proximity to the town and the beaches are key influencers, as is the size and layout of the house and what surrounds it. Above all, it is finding that rare gem of a property in an extraordinary setting which will be most insulated from any adverse future market conditions. Here you will most likely see the greatest capital growth over the next 10 years.

If you are considering buying real estate in Saint-Tropez, contact us.