The “CUB” (Urban Community of Bordeaux) came into being on January 1st, 1968. The 27 towns of which it is comprised pursue three main aims : provision of major infrastructures, economic development and modernization of urban amenities. Today, France’s 6th largest urban area attracts various types of investors, motivated by the prospect of immediate returns or the guarantee of a sound long-term asset.

The CUB is home to 660,000 inhabitants in an area of about 137,970 acres. Bordeaux, the largest city ever distinguished by UNESCO, plays host to one-third of the total population. Embellishment work commenced seven years ago, and the result has surpassed expectations. Newly refurbished monuments complement handsome bourgeois buildings, “Chartreuses” and “échoppes”. Over the last decade, population growth of around 6.2 % has been twice the national average. It really is a great place to live ! As witnessed by the 40 % of new arrivals aged 24 to 40. The site also accommodates a university of prime importance, with no fewer than four faculties, two IUTs, fourteen “grandes écoles” and 5,000 researchers.

“In spite of the crisis, demand has not ceased from private individuals for buildings to be acquired in their entirety,” says Annie Miquel of the Cabinet Miquel. Locals, Parisians, buyers from other parts of France and abroad are willing to pay from 1,700 to 2,500 €/m2 for old buildings in the centre of Bordeaux, depending on the neighbourhood, to obtain a net return of 6 %. In the case of investments, negotiations are always tough. Studios are rented out for 400 to 450 €/month, excluding charges, 1-bedroomed apartments from 550 to 600 €, 2-bedroomed from 800 to 1,000 €. The historic heart of town owes its popularity to its excellent transport facilities and the many improvements made recently. Addresses close to tramlines are even more sought-after. Being listed as part of the UNESCO World Heritage in 2007 further hoisted the flag of the Prefecture of “Département 33”. And even with its crest regilded, it is still one of the most affordable major cities in France.

Based in Saint-Seurin, on the Place des Martyrs de la Résistance, Dany Beranger of FC Immobilier specializes in the sale of empty properties requiring renovation, occupied buildings in good condition or awaiting refurbishment, furnished hotels and even hangars to be restructured. Over the last six months, he has sold a unit of 515 m2 to be entirely restored on the Quai du Bacalan for 580,000 € (1,126 €/m2), and another of 210 m2 in similar condition at Saint-André for 380,000 € (1,810 €/m2). The price difference is explained by the disparities between the two “faubourgs” : despite the tram, Bacalan is off-centre, while Saint-André, close to the Palais de Justice, has many fans. Another property situated at Nansouty with a surface area of 274 m2 redesigned by an architect, rented and bringing in 6.56 % gross, has just found a buyer at 682,500 € (2,491 €/m2). Still on his files, Dany Beranger can offer 245 m2 at Jardin Public priced at 661,000 € (2,697 €/m2) bringing a gross return of 5.5 %, 250 m2 to be done up at Saint-Michel for 371,000 € (1,484 €/m2) and living acccommodation of 580 m2 plus 150 m2 of shops at La Victoire for 1,680,000 €, bringing a return of 5.4 %. This property could prove interesting if it were resold in separate lots. 60 % of FC Immobilier’s customers are professionals, property dealers, asset managers and, to a lesser extent, developers. The remaining 40 % start with a modest acquisition, then build up a portfolio before embarking, in the case of the well-heeled, on the venture of acquiring an entire building. An option which avoids co-ownership costs and facilitates management. Bricks and mortar have always been an investment for the medium to long term. For this second category of buyers, speculation and short-term calculations are not recommended. Transactions, rid of any sentiment, should be founded more on accounting and analogical principles.

Patrick Gomez of Eric Immobilier wonders about the ideal rental target. Present in large numbers and under-written by their parents, students imply a very minor risk of unpaid rent. Furthermore, a small surface area, which is what they prefer, brings 15 to 20 ?/m2 per month, a blessing when compared with returns from 1- or 2-bedroomed apartments. Unwilling to start searching again and preparing new APL applications each fall, many young people keep their apartments over the summer. Those vacated in June are re-occupied from mid-July onwards. As a result, non-occupancy hardly lasts long. Some students opt for Talence, Pessac or Gradignan. The majority prefer the centre, only 20 minutes from the colleges since the introduction of the tram. This investment involving very little risk attracts all types of purchasers eager to supplement the low income they expect come retirement. Especially as the tenant can cover the monthly repayments up to 80 % if the loan is spread over 20 or 25 years. Finally, the choice between old and new, synonymous with both tax advantages and constraints, has to be made on a case-by-case basis.