Divonne-les-Bains, on the border with Switzerland

This town in Le Pays de Gex lies between Lake Geneva and the Jura, not far from the border with French-speaking Switzerland and only 20 km from Geneva. The thermal resort hosts over 100 different nationalities, 400 rooms in hotels and 380 in tourist residences.

Divonne owes its popularity to its closeness to the economic hub of Switzerland and the high salaries paid in the canton of Vaud - but that’s not all. The thermal resort is being treated to a facelift ; the Hippodrome matches the appeal of the artificial lake, 18-hole golf-course, watersports base, theatre and cultural centre. Since 2005, the Partouche group has managed the Casino, built in 1954. 78 % of the accommodation cons­ists of main residences, 14 % of holiday homes. 43 % of the market is composed of houses, 53 % of apartments.

“The market is clearly penalized by uncertainties surrounding tax regimes and their application,” says Catherine Arrou-Vignod of Divonne Immobilier. In the case of houses, where it wasn’t rare to see the 1 million euro mark exceeded in 2011, the majority of sales are now pegged at around 700,000 €, the sum required for a 1960’s house of 100 m2 to restore with a basement in grounds of 1,200 m2. Likewise, new developments are selling on plans, though properties still remain in the files when construction is well-advanced. The Swiss, wary about taxation on capital gains, think twice before taking the plunge. In this fuzzy context, the need for accommodation, fuelled by the dynamism of the employment pool, is having more of an effect on the rental market. This summer, clients from the Middle East nevertheless acquired new apartments priced from 5,500 to 6,000 € per sq. metre, depending on their appointments. Bringing 20 € per sq. metre per month, they are clearly seen as sound long-term assets.

“It’s hard to deny the slowdown, explained by ups and downs in the international economy. Though the situation isn’t really alarming : visits regularly result in sales,” comments Didier Bastien of the Agence Bastien, based in Le Pays de Gex since the late 1960’s. Up to 1 million euros, activity is still seeing some liveliness. Beyond that level, it tends to contract. This estate-agent, who doubles up as a property developer, is currently proposing two apartments in a small low-energy BBC residence with only ten units ; “L’Atelier de Sophie” is an intimate, environmentally friendly development with geothermal heating, garages, terraces and views of the Alps, pegged at around 6,000 € per sq.metre. There is no disparity in behaviour between new and old properties, a sector which is again becoming competitive since the recent setback in prices. “In these troubled times,” concludes Didier Bastien, “advice and service make all the difference”.