Saint-Jean-Cap-Ferrat - the dream address of Russian billionaires

Saint-Jean-Cap-Ferrat (France) - The peninsula of Saint-Jean-Cap-Ferrat, 282 hectares with villas under pine groves on the Côte d'Azur, has become one of the most expensive places in the world, where today the billionaire elite from Eastern countries is heading, reports the AFP agency.
      "This summer, there were fewer celebrations here," states René Vestri, the mayor of this world-famous municipality, which has only 2,200 inhabitants, for 30 years. The mayor has attended several ostentatious and eccentric parties, such as the one where a Chechen businessman descended from the sky suspended from a crane to the sound of drums.
      However, beware, it is not Saint-Tropez, the ostentatious shrine of celebrations. In Saint-Jean-Cap-Ferrat, a refuge for the richest entrepreneurs, discretion is cultivated behind impenetrable fences.
      Russians, Ukrainians, or Kazakhs who have moved here rarely venture into the surrounding village around the harbor. "They are closed off and are always surrounded by bodyguards," says the mayor. Thus, two worlds exist side by side that do not meet.
      This peninsula near Nice Airport, where private jets can land, is a harbor of impenetrable greenery and enormous plots of land.
      "Buying something in Saint-Jean-Cap-Ferrat is like putting money in a safe, it’s a certainty," states Cyrille Jalon from the real estate department at Sotheby's auction house.
      In villas, which are sometimes renovated without being inhabited, thousands of people work constantly. A house without a sea view here costs four million euros (about 100 million CZK), a nice villa facing the Mediterranean can be purchased for 20 to 30 million euros (500 to 750 million CZK), and an exceptional property can easily cost double that. And convincing property owners to sell is something agents can only accomplish using all means.
      "Demand here is stable, although buyers are hesitating longer today," confirms Barbara Cochran, a real estate consultant for the international firm Engel & Völkers.
      "The problem is that there are villas without a sea view," points out this New Zealander, accompanied by a Russian interpreter. She refers to two ads for the sale of villas for 22 million euros (550 million CZK) of differing quality.
      "I have a new client looking for a villa up to 182 million euros (4.5 billion CZK)," she confides, without specifying what kind of property would correspond to that price.
      Villa Leopolda, which dominates the peninsula, was sold in 2008 by the widow of banker Edmond Safra for a record price of 370 million euros (9.2 billion CZK) to Russian oligarch Mikhail Prokhorov. However, he ultimately withdrew from the purchase and lost 39 million euros (975 million CZK) in the deposit.
      With such prices, competition among real estate agencies is very fierce. They do not hesitate to surveil each other.
      Billionaires cannot be easily persuaded to buy. One must track them through own networks, hunt them down on luxury yachts, and attend parties organized by banks in Monaco and jewelry presentations for that purpose. It is also necessary to travel to London, Moscow, New York, or Hong Kong and not miss any significant auction.
      "The French are selling; they can no longer afford property taxes. They are still under pressure from the Russians," states Mayor Vestri of Saint-Jean-Cap-Ferrat. He fears the most that his municipality will become a ghost town, without a primary school and without shops.
      Fortunately, the taxes that the municipality receives from sales significantly contribute to an annual budget surplus of over 20 million euros (500 million CZK) even after ten years. Thus, the municipality was able to purchase 150 apartments, for which it charges reduced rent - it wants to prevent residents from leaving the town.