In international terms South African beach front properties offer relatively good value and are de rigueur for the well heeled. But what are European alternatives and how much do they cost?
Alexander Kraft, Chairman & CEO of Sotheby’s International Realty
“The most reasonably priced beach front villa would typically cost around €2 - €5 million (approximately R16 million - R39 million), with apartments starting at approx. €1 million (R7.8 million). Along the ultra chic Cap Ferrat peninsula close to Nice, palatial sea front homes generally range from €10 million (R79 million) – to over €100 million (R791 million). No surprise that the Rothschilds as well as the King of Belgium have owned property in the area.
Barak Geffen, Executive Director of Sotheby’s International Realty, operated by
Kraft continues that in Cap Ferrat less impressive villas, further away from the beach with sea views will generally start at €1.5 million (R12 million). Although property is exceptionally expensive in these parts, it is generally regarded as a safe bet where you are bound to get a good return whether you sell after some years or let out over the holiday season.
“A beach home market which sits somewhere between that of
Kraft adds that outside of Western Europe, Croatia is slowly emerging as a new market and might become a destination to purchase more affordable see front homes; however this area is much more difficult to get to and is not as modernized as the Western parts of Europe. This is for the more adventurous investor who doesn’t mind long haul flights and is willing to wait out his investment which will probably take a good number of years to appreciate in value as
“I see many South Africans investing in the South of France, typically in smaller homes and apartments in close proximity to the beach. In the last five years we have seen property values increase by 15-20% per year and in my opinion prices will continue to rise and eventually consolidate on a high level, especially sea front properties which are in constant demand as both residences and holiday homes.”