Talking Property

After a wobble, it's back to normal for the market on the Riviera, says ISABEL MORTON

I APOLOGISE to my husband but the truth is, I find myself very attracted to another tall (6ft 9in), dark and handsome younger (44) man. He’s from a little village called Eruda in western Siberia (perhaps a tad chilly) but has one or two other properties in more clement spots, as he just happens to be Mikhail Prokhorov, (worth $17.85 billion) knocked from his top spot on this year’s Russia’s rich list by 52 year-old steel magnate Vladimir Lisin ($18.8 billion).

Apart from losing his number one spot, I also feel a little sorry for him because he was recently given a slap on the wrist by a French magistrate for reneging on a deal he made in 2008 to buy Villa Léopolda in Villefranche-sur-mer.

Apparently the deal was done with the vendor, Lily Safra, widow of Edmond Safra, the Lebanese-Jewish banking billionaire, for a sum originally reported at €500 million but which was, in fact, only €390 million. However, due to a blip in oil and steel prices, Prokhorov felt he should, perhaps, cut back a bit on his spending, so he backed out of the deal.

However, the magistrate ruled in Lily’s favour and Prokhorov had to forfeit his 10 per cent deposit of €39 million and had to pay a penalty of a further €1.5 million for the stress and anxiety caused to the poor widow.

Rather graciously, Ms Safra announced that she was going to give it all away to charity which, no doubt, will be of some consolation to Mikhail, who is no stranger to philanthropic acts himself.

Estate agents claim that despite being a little miffed at the moment, the oligarch is still interested in buying a villa on the French Riviera so perhaps Ireland’s recently retired (to Switzerland) ex-tax inspector and property investor Derek Quinlan will introduce the Russian to the delights of his holiday home, Villa La Carrière on Cap Ferrat – one of over 50 he owns, according to Nama.

Rumours are that the villa is already on the market for anywhere between €75 million and €150 million. It’s located close to the infamous Villa Léopolda, although perhaps its proximity might be too much of a reminder for Prokhorov of his multi-million euro loss.

Either way, Mr Quinlan will be pleased to learn that Finans, the Russian financial magazine, recently reported that "Russia gained 28 new billionaires in the last year as the global financial crises eased and the country's economy started recovering from its steepest decline on record".

On her flight from London to join me in France, my sister sat beside a pilot who works for a private jet company. He was on his way to Nice to pick up his plane and his Russian clients and fly them back to Moscow, they having been in France for a few days to select and book their holiday villas.

And, as per usual, it’s all action here on the Côte D’Azur, as the locals are finishing off their preparations for “the season”, which starts in mid April and runs until mid October.

Building and renovation work is only ever conducted during the wintertime, when there are few visitors to be offended by the noise of hammers, drills and delivery trucks.

Indeed, it is forbidden to conduct any construction work at all during July and August and nobody dares break the rules. Even if one were silly enough to suggest it, builders would look at you in horror at the mere notion of having to slave away under the intense heat of the Mediterranean sun. It’s just not done.

Many claim that the season’s barometer is set by the opening and closing of the luxurious Hôtel du Cap, Cap d’Antibes, which this year opens for the season on April 9th. The weather, too, appears to accommodate these dates so every beach restaurant from Monaco to St Tropez will open in tandem.

Having experienced a little wobble last year when the summer rental brigade held back until the season had begun before booking their villas and apartments, the Côte D’Azur is back on track again this year.

As one agent reports: “Rental and sales prices reduced by between 5 and 10 per cent last year and the market was tentative, but this year we’ve noticed a return of confidence, not to the same aggressive levels we’ve experienced in the past, but strong nevertheless.”

He went on to explain that despite vendors and landlords maintaining last year’s reduced price levels, the “Côte d’Azur was never considered cheap and our prices are, and always have been, higher than most holiday destinations”.

In a survey conducted by researcher Wealth Bulletin of the top 10 most expensive streets in the world, the Côte D’Azur had the top two. Avenue Princesse Grace in the principality of Monaco came in at number one with prices of €84,945 per sq m and in second place was Chemin de Saint-Hospice on Cap Ferrat at €74,000 per sq m (which, no doubt, will be good news for Derek Quinlan).

And, if Prokhorov still can’t find a suitable villa and doesn’t mind slumming it a bit, he’s more than welcome chez moi.