It's that time of year again, a time when the silver screen's most glamorous actresses don a posh frock and strut their stuff on La Croisette in an attempt to dominate tomorrow's front pages.

La Croisette is a sweeping promenade that separates the glitzy hotels from the golden sands of Cannes, and is where the most significant shutter action takes place at the famous film festival.

But like the froth on a cappuccino, the annual assortment of actors, reporters and paparazzi aren't the real substance of Cannes. Instead, it's the winning combination of coastal location – where beaches alternate with forested coves as the shoreline meanders its way round rocky peninsulas – and consistently warm climate that have made the French Riviera a star in the firmament of property investment for so long.

The Riviera, a 70-kilometre stretch of the Cote d'Azur running from Cannes to Monaco, is the property market equivalent of gold.

When times are tough, market traders junk their insubstantial shares and buy gold instead – which tarnishes in neither appearance nor value.

In much the same way, when the credit begins to crunch property investors start to think twice about gambling on the 'next big thing' and stash their cash in the tried and tested certainties instead.

As Niclas Dowlatshahi of Leapfrog Properties explains, "There is much to be said for the perennially popular areas. The Cote d'Azur, for example, will always do well, and is still turning in solid price increases per annum."

The latest data from FNAIM, the federation of immobiliers, bears this out. While price rises in many French locations are stalling, from March 2007 to March 2008 prices in Nice – the biggest city on the Riviera and the second-biggest on the whole of the Cote d'Azur – increased by 4.8%.

Of course, such market-defying characteristics don't come cheap, and every square metre of property in Nice now has an average price of 3,990 euros (only Paris, at 6,342 euros, Cannes, at 4,640, and Biarritz, at 4,469, are more expensive per square metre).

Moreover, says Serge Cowan of Unique Living, don't expect these prices to drop just because the British economy is struggling.

"The current credit crunch is giving the UK buying public expectations of dramatic price reductions, but this is a misconception with the overseas high-end market," says Cowan. "The world is a big place. The UK market, although important, is not essential, so buyers holding back or expecting major price falls in overseas property hot spots are going to be disappointed."
 
Cowan, though, sees the French Riviera's resilient real estate as an asset in such uncertain times – even when the Euro is riding so high against the Pound.

"Buyers should look to regions where growth is still strong, so that even though they may lose on the currency conversion they gain on the capital growth. The French Riviera is a perfect example of where prices cover a whole spectrum, with steady capital growth and where there are excellent opportunities for rental income – the Cannes Film Festival and the Monte Carlo Grand Prix alone bring a multitude of wealthy people desperate for accommodation."

If you want to make money from the desperately wealthy, owning a six-bedroom villa with infinity pool and landscaped grounds overlooking St-Tropez bay might just do the trick. It's available from Unique Living for a cool 12 million euros – but just think how much rent your could charge.

Alternatively, a centrally located one-bedroom apartment in Cannes, featuring a terrace and the use of a shared swimming pool, is currently available from Your French Property for 180,000 euros.

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Article first published 21 May 2008