The area around Valence, undergoing real expansion

The Prefecture of the Drôme is the most densely populated commune in the region, accommodating 64,500 inhabitants. Situated in the middle of the Rhône valley, about 100 kilometres from Lyon, Grenoble, Saint-Etienne and Orange, it plays host to the Drôme’s Chamber of Commerce and Industry.

76.5 %* of the local economy derives from the service sector. The commercial zone of Les Couleures has about sixty shops. Briffaut Est-Ouest is home to 320 companies, as compared with about 100 based in the various “technoparcs”. Mention should also be made of the plateau of Lautagne, the zone of Les Auréats and the Cime activity centre. Valence stands at an important crossroads linking the A49 motorway and Autoroute du Soleil : a garrison town, it also offers a TGV station and pleasure boat harbour. Over 10 % of its territory is dedicated to natural open spaces.

“Unlike Grenoble and Montélimar, towns which are traditionally more dynamic, Valence has been somewhat withdrawn for many long years,” explains Roland Muthuon of Muthuon Immobilier. “Its purchasing power only began to rise over the past decade, with the arrival of employees working in new technologies and healthcare. Very soon, the type of housing adapted to meet new requirements and we began to find a few properties bearing the “high-end” label. A penthouse on Avenue Victor-Hugo costs 5,000 €/m2 versus a starting price of 2,500 €/m2 for apartments in new residences, and 1,350-2,300 €/m2 in old buildings.” Near the TGV station, the hillsides of the Ardèche - Charme and Saint-Georges-les-Bains - accessible via a new bridge, propose detached villas from 350,000 to 470,000 €. To the north, one discovers suburban-style houses of 80 to 110 m2 with gardens of 400-500 m2, priced between 190,000 and 250,000 €, budgets which are affordable for first-time buyers. Generally speaking, the outskirts of Valence are more popular, often among people from outside the region. To the south-east, Upie, Montmeyran and Etoile, flaunting price-tags of around 680,000 € in the prestige sector, are meeting with real success. To come across the first occasional residents, one has to get closer to Montélimar or head towards the Ardèche, still more appealing in terms of image. The last five sales handled by Roland Muthuon consist of an apartment of 80 m2 in the town centre, priced at 123,000 € ; a 5-bedroom apartment of 128 m2 in mint condition, with a garage, on Avenue Victor Hugo, at 341,000 € ; a 3-bedroom apartment of 95 m2, at 195,000 € ; a house of 220 m2 in grounds of 2,000 m2 with a pool near Etoile, at 530,000 € ; and another offering the same surface area, over towards Montmeyran, at 630,000 €.

Michel Courbis of Guy Hoquet L’Immobilier mainly covers the urban area. “Intramuros”, the market for first acquisitions is particularly active for apartments from 90,000 to 150,000 € and houses from 180,000 to 250,000 €. Over and above 450,000 €, transactions are very thin on the ground, mostly resulting from the arrival of employees transferred by Thalès or Imaje, drawn more by the rural surroundings than the locality itself. At the moment, a certain loss of confidence can be felt amongst clients, resulting in a bumpy ride for estate agencies. Only properties correctly estimated and in good condition are likely to sell. Buyers are not inclined to launch themselves into the daunting venture of renovation. When it proves to be inevitable, negotiations are tough. Recently, an apartment of 77 m2 in need of refurbishment in Montplaisir, initially on offer for 88,000 €, finally found a taker at 75,000 €. The Scellier scheme for which new low-energy residences are eligible should bear fruit until the end of the year. By way of example, a 2-bedroom apartment costing 200,000 € brings in rental income of 650 € per month with a potential for 44,000 € in tax benefits over nine years.

“Out of 16 houses sold by Immo de France since January, 2011, priced between 150,000 and 540,000 €, the average is close on 266,000 €, with 50 % of sales below 200,000 €. All of the houses were acquired as main homes,” says the agency’s manager, Caroline Graziano. The 29 apartments sold over the same period cost 101,000 € on average, 50 % of them priced under 100,000 €. Two-thirds were bought as rental investments. Long-term value remains very stable in the region, with the yield for older properties ranging from 4 to 5 %. Residences built in the 1960’s and 1970’s, often without elevators, suffer from poor insulation and a consequent loss of energy. Not forgetting the resulting cost. Investors in fact prefer to pay more initially to obtain more select appointments, avoid these running costs and an inevitable downward path. However, for this type of property, the more highly motivated first-time buyer will benefit from mortgage repayments that are much the same as a monthly rent.

*Source Wikipedia