Published: December 9, 2010
BEAUSOLEIL, FRANCE — Sometimes there are benefits to being a neighbor.
Beausoleil adjoins Monte Carlo, making the town a prime spot for some of the 40,000 French citizens and expatriates who commute to Monaco each day.
And while the region has some of the world’s most expensive real estate, the comparatively affordable property in Beausoleil continues to attract buyers. The year-round population in the town, which covers 5.5 square kilometers, or 2.1 square miles, totals 13,800.
“Beausoleil is a great place to invest,” said Catherine Bernard, a local real estate agent. “Three-quarters of Monte Carlo’s work force can’t afford to buy or rent in Monaco.”
“Plus, Beausoleil’s infrastructure is good,” she said, for things like schools and medical care.
The average price of property in Beausoleil is €6,000 per square meter, or about $740 per square foot, compared with €30,000 a square meter in Monaco. But price is not the whole story, Ms. Bernard said.
“You also get more for your money because in France the price is based on habitable space and excludes areas such as terraces,” she said.
“In Monaco, the advertised area includes all space, sometimes even the cupboards.”
There is also a stark contrast in rental prices, with monthly rates in Beausoleil starting at €750, or $1,000, for studios and €1,500 for two-bedroom properties. In Monaco, monthly rents can range from €3,200 for small studios to more than €20,000 for a penthouse.
Investors looking at Beausoleil usually consider the possibility of seasonal rentals.
“Around four million tourists visit Monaco annually,” Ms. Bernard said. “There’s also a solid conference industry and events such as the Grand Prix.”
But François Marchand, a sales manager of Erna Low Property, an agency in Britain, said properties that could be used as quality rentals were hard to find and sold quickly. For example, a block of luxury studios he was representing sold out recently in less than three months, Mr. Marchand said.
Options on his books include two penthouses in the Villa Royale, each priced at €1.5 million. But they could be combined to create a four-bedroom residence of 250 square meters, or 2,700 square feet, with terraces and roof garden adding 180 square meters, for €2.85 million. In Monaco, Mr. Marchand said, such a property would sell for about €12 million.
There are other benefits to Beausoleil. Because the town is built across a steep hillside, many homes have better views than those in Monaco. One is also likely to get more character.
“No one buys property in Monaco for its charm, only for the tax breaks,” said Antoine Garcin, who works in the local office of Emile Garcin, a real estate agency in Paris.
Mr. Garcin represents two penthouse apartments in the Riviera Palace, a historic monument. The building, constructed as a grand hotel at the end of the 19th century, includes a winter garden covered in a great glass-and-steel cupola that was designed by Gustave Eiffel.
Each penthouse measures 250 square meters, with one priced at €3.9 million and the other at €3.5 million. Period features include original floors and fireplaces, and one property has a terrace of 60 square meters.
“If these apartments were in Monaco, they would probably cost in the region of €8 million to €10 million” each, Mr. Garcin said.
With Beausoleil’s potential, it may seem strange that the town is not better known. But Mr. Garcin said the area did not have the same cachet as other locations on the Côte d’Azur until recently.
That image may be changing, mainly because of physical restrictions.
“There’s no room for further development in Monaco,” Mr. Garcin said. “Beausoleil could definitely be a good long-term investment.”
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