Buoyant sectors in Toulouse

France’s fourth largest city after Paris, Marseille and Lyon, with 439,450 inhabitants, the birthplace of Airbus is known as a hi-tech centre at European level thanks to its strong aeronautics, space and IT sectors. In addition to an encouraging bill of health on the business front, Toulouse offers a pleasant climate and a very appealing location between the Atlantic, the Pyrenees and the Mediterranean. Our real-estate experts focus on the city's most buoyant kinds of properties and neighbourhoods...

Between 1999 and 2006, population figures for the greater urban area rose from 762,000 to 850,900, posting the largest growth in France and, in fact, in Europe. Most of the newcomers arrive from L’Ariege, L’Aude, L’Aveyron, La Corrèze, Le Lot, Les Hautes-Pyrenees, Le Tarn, Le Gers and Le Tarn-et-Garonne. 11 % of new arrivals come from abroad. Employment motivates most of these newcomers, who are highly qualified. The economy relies mainly on the service sector (79 %) and industry (16 %). In 2007, the unemployment rate was under 8.6 %. The student population is another vital factor for the capital of “département 31”. Some 96,500 registered students place the “City of Violets” on an equal footing with Lille, just after Paris and Lyon. Capitole, Mirail and Paul-Sabatier are the main student centres. As for the quality of life, it is cultivated on an everyday basis by the city, ranked second in France in 2005 and 2008 from this point of view.

For investors, Jérôme Duplan of Amalis Conseil recommends the inner city, ie. the area bounded by the Rocade, for two main reasons : in times of crisis, property here is more resistant and the rental market, borne along by students and transferred employees, is particularly active. The 1-bedroom apartment is the star product, since it casts a wide net : it is sought by young working couples, the divorced or single retirees. From 38 to 47 m2, it brings in between 450 and 600 € per month. Our specialist draws a distinction between old and new apartments. New blocks of flats, priced from 3,000 to 3,200 €/m2, are burgeoning on the outer limits of the area, in Borderouge, on the Boulevard de l’Atlanta and Avenue de Fronton. Currently, one pays 145,000 € for living space of 44 m2 plus a balcony of 6 m2, on the Route de Launaguet. In older buildings, usually more central, opportunities can still be found from 120,000 to 130,000 €, apartments which are then rented out at the same prices. Higher profitability offsets the loss of benefits otherwise provided by tax exemption schemes such as the Scellier Act. One then has to determine the ultimate aim : some investors prefer an immediate return of around 6 % net, for the lucky ones ; others give priority to a good address and long-term asset appreciation. The latter opt for a 1-bedroom apartment at Saint-Georges, from 160,000 to 180,000 €, or an apartment of 52 m2 with a cellar and parking place in the Allées Jean-Jaurès at 210,000 €.

The most central part of Toulouse is always an excellent choice,” agree Frédérique Julien and Jean-Pierre Corazza of Ozenne Immobilier. In the apartment segment, Ozenne, Les Carmes and Saint-Etienne top the bill. In need of total renovation, the square metre is pegged around 3,000 €. Once work is completed, it ranges from 4,000 to 5,000 € if accompanied by a garage and a terrace or small garden. The crisis has hardly affected these price levels at all. Here, young executives acquiring their very first home pay 250,000 to 300,000 € for a 2-bedroom apartment. Benefitt-ing from the sale of a house on the outskirts of the town, 45 to 60 year-olds look for apartments of at least 150 m2, in good condition, close to shops and amenities, from 500,000 to 600,000 €. All these potential buyers run up against a shortage of available properties, just like investors ready to pay 100,000 to 150,000 € for a small apartment requiring some refurbishment and located within walking distance of the economics and law faculties, the AES and Institute of Political Studies. This category of buyers, more timid in 2009, nevertheless represents 25 % of Ozenne Immobilier’s clientele, one-third focussing on old buildings, two-thirds on new apartments, as the agency specializes in tax advantages. Frédérique Julien and Jean-Pierre Corazza regret the sometimes deplorable condition of communal premises, a factor which seriously lowers the value of many properties on the market.

“Whether a buyer is interested in Toulouse itself, its second or third outer ring, he systematically demands excellent transport facilities and immediate proximity to a rapid means of transport such as the Metro or tram,” adds Chantal Lagarde of the Cabinet Lagarde. Currently, Saint-Cyprien and Arènes are of growing interest, a change explained by the future Cancéropôle and the forthcoming arrival of the tram. Still very attractive, prices are 30 % lower here than in the centre. The same goes for the lower part of Les Minimes. Thanks to the many efforts made by the municipality to make transfers easier for its residents, enthusiasm for the historic heart of town inevitably rubs off on the peripheral areas. Similarly, fans of villages are looking for a high level of convenience. The era of the dormitory town seems to be gone forever. Balma, L’Union and Ramonville meet with some success. “If it’s more correct to talk about a ripple of interest than a real recovery, it is in fact time for the purchaser to take action : interest rates are exceptionally low, owners accept reasonable negotiations, and tax incentives, including the deduction subject to mortgage interest conditions, may not last. In a tense situation, in which anxiety and a lack of information reign supreme, the estate-agent has more than ever a role to play,” concludes Chantal Lagarde.

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