Investing in Aix-en-Provence
Par Radia Amar - 01 October 2015
With 41,000 students, high-quality summer festivals, an elegant ambiance, historic heritage and delightful living conditions all year round, Aix-en-Provence scores very high marks. Investing here in bricks and mortar seems like an excellent idea.
Only 26 km from Marseille and a 2 hr 40 minute ride on the TGV from Paris, the lovely historic capital of Provence has successfully carried out modernization without turning its back on its illustrious past. Founded by the Romans in 122 B.C., its architectural treasures and lovely thoroughfares are surrounded by buildings of character and elegant private mansions. Constantly looking to the future, it is implementing large-scale projects such as the ITER site (Cadarache) and the science and technology centres of L’Arbois and Rousset.
”In terms of pure investment, the most sought-after type of property is still the studio or 1-bedroomed apartment in the town centre, intended to be rented out to students. Even though the yield is modest, this type of acquisition adds a little extra to the pensions of senior citizens, or enables younger buyers to invest,” says Valentin Huc-Debat of the Agence d’Aix-en-Provence, going on to explain a trend which has been growing over the past five years. “An apartment intended for furnished seasonal rentals is a highly-prized acquisition among many discerning investors. They are looking for properties to renovate, the cost of the work being tax-deductible. Management is admittedly more onerous, as tenants have to be found in all four seasons, but rental income can as much as double compared to year-round rentals. A studio bringing 6,000 € per year as a classic rental can thus attain 12,000 €.” However, the market for these furnished rentals is becoming extremely competitive. Only those benefiting from a prime location, a terrace and/or remarkable equipment attain a satisfactory level of annual occupancy. “Aix-en-Provence is more of a good long-term investment than one bringing a high return. A property of quality will always sell and may occasionally set a record for its price,” says our specialist. He describes, for example, the recent sale of an apartment of 39 m2, impeccably renovated and equipped, next to the Place de la Maire. It has just been acquired by the father of a family who paid 240,000 € to provide accommodation for his two daughters, students in the Faculty of Law.
“Aix-en-Provence is a prestige property market and therefore expensive,” comments Aline Sans, manageress of the ALS Gestion firm. “Acquiring a property with the aim of renting it out to students or tourists seems like a very sensible idea. However, while prices have declined, rents have too ; and the yield here is not as high as in other towns in France such as Nantes or Toulouse. Aiming for capital gains is also risky, even if Aix has always been a sound long-term investment.” The ideal solution is to acquire a property to add to one’s assets, or when looking to live in it later on, when one retires or returns to France after living abroad. “In spite of a market which is currently rather complex, it seems obvious that those who have a real intention to acquire a property, and all the elements required to present a sound application file to the banks, should do so right now, as mortgage rates are still exceptionally low but will soon be on the rise. For other clients, alternative investments such as SCPIs (Real Estate Investment Trusts) which consist of investing in living accommodation, office or commercial premises, with a very low initial participation (from 2,000 €), brings a return of over 5%, thus offering an appreciable yield without the bother of managing the property.”