Investing in Marseille

With a past stretching back 2,600 years, France’s second largest city has succeeded in building a strong identity with an urban scene in constant movement. After many long years of extensive refurbishment, the Phocean capital is now presented in a new light. That of a proud and dynamic Mediterranean metropolis.

With a population of close on 851,500 and since the launch of the Euroméditerranée project, Marseille can now claim to be a strategic centre for economic and cultural exchanges between France and the rest of the Mediterranean countries. This rehabilitation operation has resulted in a re-modelling of the city from the neighbourhood of La Joliette to that of the Saint-Charles train station. Despite the crisis, still palpable in many areas, the town now benefits from a diversified economy, a large pool of employment, France’s N°1 port, a highly-ranked university with 60,000 students, and an avant-garde cultural centre. All assets placing it among the most attractive cities in terms of sound property investment. The general decline in prices in all neighbourhoods is thus a blessing for those placing their bets on the future.

With nine agencies covering the area from the 1st to 8th arrondissements and a team of about 30 working together to meet their clients’ demands, the Connexion Immobilier group offers in-depth knowledge of the various facets of Marseille. “The overall decline in prices now enables savvy investors to seize genuine opportunities,” points out General Manager Bruno Lebert. And there are many of them taking a closer look at the market in the capital of Provence, especially as Marseille enjoys good publicity in the international press ; as shown by an article published in October, 2013, in the New York Times, awarding Marseille second place in its annual ratings of the top 46 towns to visit, after Rio. “Parisian and British investors are searching for high-quality properties in neighbourhoods seen as “blue chip”, such as Vauban, Chaves, Les 5 Avenues and certain streets in the 1st and 2nd arrondissements, where one can set one’s sights on a 1-room apartment with a budget from 50,000 to 80,000 €. Once rented out from around 350 € per month, it brings very satisfactory rental income,” explains our specialist.

The top end of the market also attracts buyers from other regions. With its luxury villas offering panoramic sea views, the Barnes agency deals with many Parisian clients. “These villas priced from 1.5 to 3 million euros are often intended for a clientele in search of second residences,” says Thierry Chomel, associate director of Varagnes - Barnes. “A sea view, security, and closeness to the beach are their main criteria, as well as immediate proximity to a large town centre proposing a real social and cultural life.”. These second residences, often becoming year-round homes when their owners retire, are sometimes rented out on a seasonal basis, bringing good income especially in the summer season. “Leased on a long-term basis with a monthly rent of 5,000 to 6,000 €, a villa of this kind gives a return of 3 to 4 % which, after tax, may prove to be of little interest to owners not in need of extra income.” On the other hand, Thierry Chomel notes steady demand for apartments near the university campus of Luminy in the 9th arrondissement. “Studios and 1-bedroom apartments are popular here among French, Belgian and Swiss investors, who rent them out to students.” And the rest of the international clientele ? “Apart from a few countries looking for mansions to accommodate a consulate, embassy or foundation, especially in the Monticelli neighbourhood, high-end investors from other continents have been thin on the ground this year.”

Specializing in unusual and contemporary properties, the Espaces Atypiques agency, operating in Paris, Bordeaux, Lyon and Les Yvelines, opened a branch in Marseille just over two years ago. Its team of four unearths villas designed by architects, converted premises, penthouses, lofts, split-level apartments of character etc. “Our properties are designed for both year-round living or as second residences to be rented out on a seasonal basis, and also for professionals looking for places where they can run a B&B activity. Investors now account for a third of our clients,” explains the agency’s manager, Jérôme Louis. In a highly-prized neighbourhood, a loft with tasteful appointments costs around 300,000 €, as exemplified by a duplex designed by an architect at the foot of Le Roucas Blanc, at the heart of the Vauban neighbourhood in the 6th arrondissement, up for sale at 360,000 €. “Our investor clients are looking for original properties of quality,” says our specialist, mentioning one of his recent sales : an ultra-contemporary villa built of metal and glass. On the hills in the Endoume area, offering a fabulous sea view, it was acquired by a Parisian client for 980,000 €. Another villa with a view, 4 bedrooms and a pool was to the taste of a Belgian buyer who, in just one visit, fell under its spell and parted with 820,000 € to treat himself to a holiday home in the sun. “By renting out their properties in the summer season, a third category of buyers chalk up a yield of 5 to 7 %.” With numerous schemes applicable in Marseille - the Malraux, Duflot and Censi-Bouvard schemes, LMNP status, “Historic Monuments” scheme -, investing in Marseille is now a strategically viable project, on condition that one chooses a property of quality and, above all, a desirable location : from one street to another, that can prove to be radically different.