Nantes, a very go-head town

Just 50 km from the ocean, the Prefecture of Loire-Atlantique, distinguished as the most pleasant town in Europe by Time magazine, is also France’s “capitale verte 2013”. The only brakes restraining its property market have more to do with a scarcity of available properties than demand which, on the contrary, is remarkably steady.

The urban community known as “Nantes Métropole”, composed of 24 entities, is home to 600,000 residents, including 283,000 in its main town. In the 15th century, it served as the capital of the Duchy of Brittany, helped by the Duchess Anne's marriages to become linked to France. In the 18th century, the port of Nantes became a mecca of international trade : industry developed between the 19th and 20th centuries, before fading out in favour of the service sector at the turn of the 20th century. Its territory straddles both sides of the Rivers Sèvre, Loire and Erdre, this last one of the most beautiful rivers in France. One-sixth of the town is allotted to open green spaces. Rehabilitation of the Ile Feydeau, Place Royale and the Cours des 50-Otages has given priority to pedestrian zones. Since it was launched in 1989, the Paris-Nantes TGV has become one of the most heavily traveled rail routes in the country. Focusing on agribusiness, aeronautics and technology, the Prefecture of “département 44” plays host to many banks and insurance companies, while continuing to exploit the timber trade. It welcomes 2 million visitors per year and 47,000 students. In terms of dynamism, it bears comparison with Toulouse and Strasbourg.

“During the crunch, the volume of transactions declined significantly, without however causing much of a drop in prices,” says Benoit Isaia of Caharel Immobilier Sotheby’s International Realty. “At the time, only properties up to 300,000 € sold easily, a slice of the market underpinned by first-time buyers, investors and property dealers.” Apartments in the centre cost around 3,000 €/m2, provided they have no major defects. Unfortunately, the stock has dried up. Badly affected for the past 18 months, the 400,000-600,000 € bracket, in which prices fell by 10-15 %, is beginning to pick itself up. From October 2008 to September 2010, prospective purchasers, waiting to sell their main homes, were in fact unable to predict the future clearly in terms of their cash positions or even their job situations. The top end of the market - ie. apartments of 200 m2 with high-quality appointments, houses of 180-250 m2 in grounds of 500-1,000 m2 and mansions costing up to 1 million euros - is recovering some of its vitality. Now in a position of strength, buyers can afford the luxury of high demands and are contributing towards a clear-out of the market. They would, however, be well-advised to seek professional advice, given the extent of various new factors.

“Investors account for 20 to 30 % of the market share. Their aim is to invest in properties in beautiful historic neighbourhoods, ranging, exceptions aside, from 70,000 to 200,000 €, rather than pursue a relentless quest for profitability, or a pretext to reduce their taxes,” notes Elizabeth Audoux of the Agence du Boccage, specializing in proximity services and customer loyalty. From this perspective, buyers often set their sights on old buildings offering more appealing locations and sound long-term investments. For many long months, company directors have been focusing on keeping their business on the rails rather than on expanding or embellishing their homes. Long absent as a topic of conversation, the desire to build new projects is reappearing among potential clients, especially as interest rates are exceptionally low. In addition to a very genuine quality of life, Nantes benefits from the proximity of seaside resorts where the locals main-tain holiday homes, in La Baule, Pornic or Noirmout-ier, for example. Correctly estimated, properties without any disturbances soon find takers.

Pascal Péridy of Votre Immobilier Personnalisé notes strong demand for houses from 85 to 100 m2, opening out to small gardens and priced between 250,000 and 350,000 €. The phenomenon can be explained by an influx of working families in the capital of Loire-Atlantique. They head for Canclaux, Mellinet, Zola, Chantenay or Procé. Among his recent sales, this estate agent, who regrets the shortage of products, mentions a house of 90 m2 on an estate, prolonged by a garden of 100 m2 and acquired for 243,000 € by 30 year-old executives back from Paris, and another house of 110 m2 to renovate, with a garden of 350 m2 in Mellinet, purchased by a family of four for 350,000 €. Apartments arouse less interest given the fact that, priced at around 2,500 €/m2 in these neighbourhoods 20 minutes from the historic heart of town, they enter into direct competition with individual houses.

“Opting for building land is a judicious alternative,” points out Olivier Lévêque of Demeure et Patrimoine Immobilier. Except in the hyper-centre, at a point of saturation, building land is divided almost evenly throughout the territory. Depending on the address, the savvy client negotiates between 400 and 1,000 € per square metre. A plot of 200 m2 in Chanteney able to accommodate a house of 150 m2 costs 160,000 €. If you set your heart on a home of excellent construction, costing around 2,000 €/m2, you ultimately expect to pay 460,000 € for a house corresponding to your needs and desires. As for promoters, they are looking in Nantes itself or around the first ring, for minimum floor areas of 1,200 m2 with a plot of land, pegged from 350 to 700 €/m2. The need for accommodation available for rental is very real. For a city of this size and category, Nantes remains relatively affordable for both private individuals and business concerns. Its growth potential is highly significant. The trip to and from Paris could be shortened from 1 hr 50 to 1 hr 30 by TGV train and residents are waiting for the creation of a major airport.

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