Now the Cote d'Azur is more popular than ever with a steady summertime stream of Hollywood superstars, pop idols, supermodels, business tycoons and Arab princes. And many of them have bought homes in the area

The outcome, predictably, is that property prices have gone through the roof, with Cannes rated the most expensive real estate area in the whole of France.

When international agents Knight Frank made their predictions for 2006 they put the Cote d’Azur at the top of their list of areas likely to make the largest capital gains.

It’s easy to see why. The Var area is still one of the favourite destinations of both French and Europeans who are searching for a home.

In the last few years it has become one of the most expensive departments in France for real estate, reporting a sharp rise of 12.2 percent last year (2005) and an astonishing 84.2 percent in the last five years.

There is, however, more, much more, to the South of France than just the Cote. And British second-home buyers, retirees and investors are becoming ever more resourceful in tracking down the bargains that still exist in the region.

In Provence, a large family country home will cost between €600,000 (£410,480) and €800,000 (£547,306). But so many tourists are happy to drive through France that at least a 22-week letting year can be expected. The level of rental income is another factor, with Cannes, for instance, producing double the rate of a like-for-like property in central Paris.

For something involving less capital outlay - and absolutely no DIY - there are a couple of new inland developments with scope for lower budgets. At Tourrettes sur Fayance, a picturesque medieval village 12 miles west of the perfume capital of Grasse, you can buy a new home for a lot less than you would pay on the coast.

Major French developer MGM has built 45 apartments, the first new buildings to appear in the village for more than 15 years. The scheme, Les Jardins de Manon, is near the village square and enjoys panoramic south-facing views of the Massif de L’Esterel. Prices range from €184,000 (£125,880) for a one-bedroom apartment to €477,000 (£326,331) for a three-bedroom duplex.

A private road gives residents easy access to garages concealed beneath lawned gardens which also incorporate a private swimming pool. There are shops and restaurants nearby, and a golf course at La Terre Blanche is a ten-minute drive. Nice Airport is about 40 minutes away by car.

At MGM’s London sales office, Sales Manager James Rodwell points out: “When you buy inland you buy authenticity - as long as you go to the right area. Some of the villages in the hills behind Cannes and Nice are geared up to the tourists, so there is little difference in prices between them and those on the coast. However, go further west and you find that the inland villages have retained their timeless charm. In addition, homes in these areas can offer better value for money that those in the popular coastal locations.”

MGM is also building 44 new apartments in two buildings set among olive and pine trees in St Raphael, just 15 metres from the seafront and sandy beach.

“For second-home buyers who dislike flying and cannot face the long motorway dash to the South of France, St Raphael has the answer,” says Rodwell. “Jump on the Eurostar, simply cross the platform to change trains in Lille, and the French TGV will whisk you down to St Raphael. The station is only a short walk from our new development.”

The development, called Residence Les Sables d’Or, is the last green development site close to the sea in St Raphael. Designed by Jean-Pascal Clement, one of the region’s leading architects, the four and five-storey buildings have been arranged so most apartments have a sea view. They range in size from a 50 square metres one-bedroom apartment with terrace priced at £194,000 to a four-bedroom duplex, with a floor area of 116 square metres and a 41 square metres terrace, which is £512,000.

Each apartment in the development, due to be completed in the summer of 2007, comes with cellar storage and a lock-up garage concealed beneath the building.

But what if your heart is set on a sea view?

The good news is that there are some developments in the region.

Victoria Palace, a development of 12 apartments on the sea front at Juan les Pins, between Antibes and Cannes, has several apartments available with prices ranging from €920,000 (£629,402) to €2,050,000 (£1,402,472).

At L’imperatrice, overlooking Baie des Anges, close to Nice Airport and the city centre, there is a luxury development of one, two and three-bedroom apartments with terraces and sea views, plus a swimming pool in the grounds. Prices for a one-bedroom apartment start from €344,000 (£235,342) and include air conditioning. The apartments are due for completion in June this year (2006).

If you are looking to make an off-plan purchase, there are one-bedroom apartments at Sainte Maxime, in the Gulf of St Tropez, from €209,000 (£142,984). The residence is set around an internal courtyard and landscaped gardens and all apartments have a terrace or loggia. Two-bedroom apartments cost €261,000 and three-bedroom are priced at €620,000.

The development is a five-minute walk from Sainte Maxime’s lively central square and just 200 metres from the nearest beach. The resort features a marina, with sailing and water sports, and in the hills above the town there is an 18-hole golf course.

Penny Zoldan, of London-based Latitudes French Property Agents, says: “While it’s true that buying close to the sea on the Riviera is usually more expensive, it’s important to remember that these areas do not close down in the winter. And properties in this area are always sought after.”