32 km from Arles, 44 km from Avignon and 54 km from Montpellier, this city with Roman, Spanish, Camarguais, Cévenol, Languedocien and Provençal influences, boasts a market for apartments which is particularly resistant, despite a drop in prices of 10-12 %.

The Prefecture of Le Gard has decided to turn its back once and for all on the economic slump. Benefitting from a first-class geographic location, it focuses on IT and nanotechnologies, and is not hesitating to improve its healthcare services and student facilities. A wise approach, when one considers that, of the town’s 150,000 inhabitants, 25 % are under 20 years old. Only 2 hrs 50 from Paris by TGV and 2 hrs 30 from Spain by car, the lovely town of Nîmes has preserved the architectural traces of a rich past. Looking to the future, it is to inaugurate the SMAC, redesign Jean-Jaurès, restore the Maison Carrée and the arenas, refurbish the Esplanade and Avenue Faucher, and even consolidate the activity zone of the Parc Georges-Besse and the shopping areas of Ville Active and Cap Costières.

“The first half of 2009 shows a fall-off in transactions of about 35 % compared with the previous year,” observes André Lhéritier of Solvimo La Fontaine. Apartments, however, struggling much less than villas, are still managing to draw interest, especially in the price-bracket around 100,000 €, a budget bringing an apartment with 2 or 3 main rooms in an old building. A few clients are also prepared to pay around 300,000 €, the price required for living space of 100 m2 with a terrace and garage. Since the beginning of September, investors have shown more interest, with the Scellier Act bearing fruit. In the case of new developments, yield is close on 4 to 4.5 % gross, versus 7-8 % for older apartments. Buyers head for Montaury, Feuchères-Arènes and La Fontaine. Bearing price-tags of 2,000 to 2,600 €/m2, these neighbourhoods near the centre do not suffer the disadvantages represented by the Ecusson. Enjoying peace and quiet, they also have terraces or gardens, and parking facilities. On the other hand, young people are still willing to put up with narrow streets, parking problems, the absence of elevators and the sometimes noisy entertainment provided by the old town, not far from the Vauban Faculty.Offering charm and style, apartments here hover around 1,500 €/m2. Chemin-bas d’Avignon and Nîmes-Ouest, at 800-1,000 €/m2, host blocks of flats built in the ’sixties and ’seventies, while other addresses in Nîmes usually change hands at about 1,500 €/m2. Local developers post prices around 2,800 €/m2, whereas well-known national developers are hoping for 3,200 €/m2. This ultra-convenient accommodation implies very reasonable charges, a factor which is important for first-time buyers.

“Getting out of the crisis depends on the pursuit of equilibrium between sellers’ expectations and buyer’s capabilities,” points out Geneviève Desimeur of Domus Immobilier. “At the moment, the former are aiming high and the latter are making unrealistic offers or meeting rejections from the banks.” Negotiations sometimes break down for a matter of 5,000 €. Especially as apartments are targetted by people working locally, unlike individual houses which benefit from financial windfalls proposed by temporary residents and senior citizens attracted by the region. The apartment sector does, however, receive some interest from people from Montpellier, happy to spend 10 to 15 % less for the same type of property. They set their sights on recent developments in Ville Active and Les Costières, and proximity to the motorway. Geneviève Desimeur says she’s optimistic : “Nîmes should benefit from the migratory trend towards the south and the aura of Languedoc-Roussillon”.

“There’s a gap between the prices posted and actual sales : last October, the average observed in the town’s advertisments, placed by estate-agents and private sellers, was 2,300 €/m2 for 3-bedroomed apartments and 3,300 €/m2 for 5-bedrooms. These figures do not correspond at all to the price-grid for large surface areas, nor even to the very top end of the market. In reality, a studio should be worth from 45,000 to 60,000 €, an apartment with 2 main rooms 75,000 to 100,000 €, 3 main rooms, 85,000 to 135,000 €,” notes Bastien Floutier of the Norman Parker agency. Owners are often too greedy. While one can understand those who bought in 2006 and 2007, likely to lose 10-15 % in the case of mortgages at 110 %, one can criticize others for a certain lack of realism. Thanks to the Scellier Act, prices of new apartments are not collapsing. The scheme could spark a rush in the fourth quarter, just before the suppression of the five percentage points scheduled for January 1st, 2010. Cautious developers, hardly inclined to take any risks in the area of raw materials and workforce commitments, pay close attention to cost efficiency so as to be able to implement energy savings standards and ensure affordability. Constraints which are joined by the obligation to provide two parking places per housing unit. Small residences are no longer profitable because, for 16 apartments, two floors have to be created in the basement for parking. The “green” issue now lies at the core of all debates : it may well be that apartment buildings of the ’sixties and ’seventies will see sharp depreciation in the coming years.