AS FILM stars step on to the red carpet for the Cannes Film Festival next week, just 50 miles or so down the coast, at Menton, things will be a lot less glitzy.

Beyond Monaco, at the extreme east of the Riviera coastline, Menton is quiet and understated — less overrun than Nice, St Juan le Pins and its other neighbours. The town’s promenade, which runs along a sandy beach, is dotted with cafés that are more likely to have elderly ladies sipping kir alongside retired diplomats and the occasional British expat than holidaymakers seeking South of France glamour. The baker will know many of his clients by name.

But it wasn’t always like this. Menton was fashionable at the end of the 19th century and the beginning of the 20th, and it still boasts a large number of Belle Epoque properties. Its past residents include a smattering of Russian grand dukes and retired diplomats as well as names such as Katherine Mansfield, Noël Coward (below), Jean Cocteau and Picasso.

Now it is the retired Italians and French who are the main second-home buyers in Menton, which is 40 minutes’ drive from Nice airport and within easy reach of the Italian Riviera. It may be still relatively undiscovered by British buyers, but that is changing as more northern Europeans start to explore the area.

Jessica Dellapiane, of European Villas International, says that huge investment has pushed up property prices and revived interest among British buyers. Recently nearly half a billion euros has been spent on the Boulevard de Garavan — the road that runs from the Italian border to the heart of the old town. The pavements have been widened and relaid, new trees planted, points of interest highlighted and new benches added. The old town centre, with its narrow cobbled streets, is pedestrianised now, and it has attracted big retail names who are nevertheless required to retain traditional frontages. There are also plans to clean and repaint façades in the old town.

The town’s rich history has left rich pickings for homebuyers. A three-bedroom flat in the villa that was used by Queen Victoria when she came to Menton is for sale for €980,000 (about £670,000) through European Villas International; it is in a quiet and pretty part of the Garavan district, to the east of the town.

Many of the Belle Epoque buildings have now been turned into apartments. Ewen and Nadine McPherson fell in love with a whole house from that era and paid €1.4 million for it a year ago. “It’s good value compared to a lot of the South of France and we love being able to pop over to Italy,” she says. The couple had looked at various other towns along the eastern Riviera before choosing Menton. “There is a wonderful daily market and plenty of restaurants but we really like it because it’s just unique along the Côte d’Azur.”

James Nelson, a solicitor from Warwickshire, and his wife, Sophie, have also just bought there after looking along the coast. They chose a £300,000 two-bedroom flat with a sea view. “Menton is less blandly international than places like Cannes and even Antibes,” he says.

For Nick Wood the Italian influence was the big draw. “It gives it another cultural dimension,” he says. He and his wife, Maria, bought a two-bedroom flat in 2000 for £160,000 in the Garavan area.

Jean-Claude Caputo, of Riviera Estates, associates of Savills, points out that even though waterfront properties in Menton can exceed €10,000 a square metre, they are half the cost of those in the best areas of Cannes. Ms Dellapiane says: “Two-bedroom flats range from about £180,000 to about £350,000, with houses and villas of perhaps 120 square metres with sea views and a pool going for £1 million and above.”

Outside the town, apartments in a Palladian-style building in pink stone cost from €400,000 for two bedrooms, and from €700,000 for three. They are being sold through David King & Associates. A penthouse is also available there for €1.5 million and the development has two swimming pools and tennis courts.

Menton landlords should not expect the high rents so common farther down the coast. A two-bedroom flat that would rent for €1,200 in high season in Cannes or around Nice would go for 20 to 30 per cent less in Menton. “Letting property is always an option in Menton,” says David King. “It’s got a loyal following of holidaymakers and because of its micro- climate, the summer season stretches from April to October — considerably longer than the rest of the Côte d’Azur.”

European Villas International, 0033 493359655, www.villas-international.com; David King, 020-8673 6800 www.dkassociates.co.ukRiviera Estates, 0033 493874115

Explore Property

• Buying & Selling

• New Homes

• Overseas

• Interiors

• Investment

• Gardens

• Cool In Your Code

• Specials

• First-time buyer

Times recommends

• Second homes: credit crunch casualty or money-spinner?
• How I built my own sliding house
• Top 10 incentives for house buyers