The slowdown felt in the real estate market affects cities unequally across the country. While some are increasing the number of corrections in prices of goods for sale, others, such as La Rochelle, are resisting the crisis.
According to data from Meilleursagents, prices in the commune of Charente-Maritime in the last three months are still increasing by 1.8%, reaching an average of 4,977 euros per square meter for apartments: “We cannot talk about a downward trend in La Rochelle. “Once the sale price is negotiated, we start to see some adjustments of 1% to 2%, but no more.”Romain Crepaud, director of city center agency Century 21, says:
Enough to prevent the youngest candidates in the city from participating. “The average price per square meter of an apartment in the city center is approaching 5,500 euros. In the most popular neighborhoods such as Minimes, close to the marina, the price per square meter is 6,000 euros. First-time buyers have only two options. Or head to towns like Surgères, which are more than forty-five minutes away by car. “Or stay a tenant.”states Mickael Gauduchon, managing partner of the ORPI La Rochelle agency.
61.4 percent increase in ten years
As Meilleursagents points out, prices in the town have literally boomed; There has been a 61.4% increase in apartment prices in just ten years. It’s a significantly larger development than seen in cities such as Bordeaux (+46.5% over ten years), Nantes (+42.4%) and even Toulouse (+40.1% over ten years), but remains very popular with buyers.
The high prices in connection with the tourism potential of the city also affect the preferences of investors. Located behind its three legendary towers (Lighthouse Tower, Chain Tower and Saint-Nicolas Tower), La Rochelle has an extraordinary architecture with arched shopping streets. The city’s numerous ports and historical dimension contribute to its tourist popularity. Approximately 4 million visitors come to La Rochelle every year.
Enough to attract a large number of investors interested in seasonal furnished accommodation: “Standard market rents are not increasing as fast as real estate prices in La Rochelle. In 2004, investors were able to earn a gross return of 5%. If they live on 2.5 percent or 3 percent today, that’s not bad anyway. For this reason, interest in seasonal rentals is increasing. They know that for a week’s rental they will receive the equivalent of a month’s rent.”explains Romain Crepaud.
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