The Cote d'Azur offers a positive environment and exclusive locations for the development of property investment activities. The operations planned and launched in the Eco-Vallée and the areas of the Métropole Nice Cote d’Azur, Sophia Antipolis, Cannes and Grasse provide investors with exclusive opportunities with high profit potential.
With excellent international connections and a strong power to attract foreign executives and companies, the Cote d’Azur excels in high value-added services and the innovative technology industries:
- In the space of 40 years, Sophia Antipolis has drawn in over 2 230 companies employing 36 300 people, mainly in the ICT sector. Foreign-owned companies account for 10% of all companies and a quarter of jobs. For 40 years, almost 900 additional positions have been created each year at the science park, mainly in R&D activities or those with a strong technology content. Sophia Antipolis is facing a constant demand for new surface areas and major new tenants have recently set up or expanded including Huawei (400 m²) in 2013 and Amadeus (4,500 m²) and Intel (1 800 m²) in 2012. [>] Sophia Antipolis
- Nice is ranked fourth in the league table of cities with the best performance results in terms of economic dynamism and property business, according to Explorimmoneuf. It is also ranked as Europe's 5th city for the quality of its infrastructures, according to the Financial Times/FDI Intelligence, "European Cities and Regions of the Future" ranking. France's first Métropole has begun a transformation focused on technology and sustainable development, which makes innovation central to the city and is embodied in the "Éco-Vallée Plaine du Var" Operation of National Interest. [>] Nice et Éco-Vallée
- The Nice market is mainly comprised of the Arénas business district and the recent urban development of Nice Méridia. Recent years have been marked by a certain lack of new, available office space. The Nice market will benefit from new reception and public transport infrastructures and the urban development plans of the Éco-Vallée – up to 500,000 m² of office space is planned over the next 15 years.
- The areas of Cannes on the coast, Grasse inland and Menton on the Italian border are developing comprehensive ecosystems in their business sectors based on internationally-recognised specialities such as the imaging and aerospace industries, flavours and perfumes and well-being.
Every year, the region, a real magnet for French and international executives, attracts dozens of foreign companies looking for offices, while established companies continue to expand their sites. The Cote d'Azur offers a variety of business sites including a science park, business parks, industrial estates and international business districts at extremely competitive rates.
The Palais des Festivals in Cannes hosts 2 major international property trade shows every year: MAPIC – "the international retail property market" and MIPIM – "the world’s property market".
Low vacancy rates, high yields, a sustained transaction volume and pressure on new surface areas in the face of demand are the main characteristics of a Cote d'Azur market in full recovery. With yields of 5,5 to 9%, the Cote d'Azur business property market is highly attractive on the French and European markets.
The Office Property Survey
- 21 7003 sqm of offices marketed in 2017
- 80,000 sqm of available space (1st semester of 2017)
- €110 to €190/sqm/year rental value in Nice/Sophia Antipolis in the 1st semester of 2017 for new property
- 5,5 % to 7 % premium yield for acquisitions (1st semester of 2017)
The Business Premises Survey
- 19,715 sqm of premises marketed in the 1st semester of 2017
- 55,000 sqm of available space (1st semester of 2017)
- €1200 to €1750/sqm/year rental value in Nice/Sophia Antipolis in the 1st semester of 2017) for new property
- 5 % to 6,5% yield
Source: Côte d'Azur Real Estate Market View - The Cote d'Azur's Business Property Club - 2017
The two main zones designed to accommodate new businesses offer property investors opportunities to be involved in ambitious projects:
- In Sophia Antipolis, the spaces currently in use are spread over 200 ha of available public land. The science park's capacity is nearing 2 million m² of buildable space for 1.2 million m² of offices. 10,000 m² of offices are currently due to be delivered (and 20,000 m² are authorized). The regional development project "Sophia 2030" is part of the larger development project "Côte 121" which plans for 4 networked urban hubs in the southern part of Sophia Antipolis and concerns an additional buildable area of over 500,000 m² by 2020. The operational phase began in autumn 2013.
- To the west of Nice, the Eco-Vallée Operation of National Interest plans to create 50,000 jobs over 30 years through the development of cleantech and 2.5 billion euros of public and private investment by 2026. An area of 10,000 ha offering 3 million m² of buildable space and 450 ha of changeable space. Two exclusive projects at the Grand Arenas and Nice Méridia offer high visibility for office property.
The Côte 121 development in Sophia Antipolis
- The "Trois Moulins" development project is creating a potential 150,000 m² of offices, shops and housing, the gateway to the "Hyperpark" and connecting the area to the valley and the A8.
- The "Le Fugueiret, innovation city" area provides for developments over 150,000 m² with 40 to 50,000 m² for service/research, 50,000 m² for higher education and a university city.
- Les Clausonnes supports 60,000 m² of commercial space and 25,000 m² for industrial and craft activities.
- The Saint-Philippe District concerns an additional 60,000 m² for service activities and higher education.
Building projects in the Eco-Vallée
The Eco-Vallée is organising four major property projects, either currently being studied or for immediate release on the market, two of which concern office property:
- Grand Arénas: an international business centre across 49ha accommodating an international exhibition centre (65,000m²), the Nice Airport multi-modal transport hub as well as residences and shops. 750,000 m² of buildable space including 390,000 m² of offices and eventually 22,000 new jobs.
- "Nice Méridia": an urban science and technology park designed for R&D and training in the environmental, green growth, health and contactless mobile services sectors. 347,000 m² of buildable space including 58,000 m² of offices and eventually 22,000 new jobs.
[>] For more information ecovallee-plaineduvar.fr
The Saint- Augustin – Airport multi-modal hub, the West-East Tram line, the improvement of the Nice-Cannes rail network, the redevelopment of the Thiers rail hub are just some of the infrastructure projects supporting regional development.
Major office property programmes 2017