Bordeaux : a hub for opportunities

Radia Amar - 07 July 2020

Bordeaux : a hub for opportunities Acclaimed for its privileged position on the Atlantic coast, its prestigious vineyards and its closeness to Paris and the Basque country, the 5th largest city in France is seeing an encouraging recovery.

As Sales Director with Maxwell Baynes Christie’s International Real Estate, which covers all of La Nouvelle Aquitaine, Carmina Candelero mainly focuses on the region around Bordeaux, the Bassin d’Arcachon and Cap Ferret. “We specialize in prestige real estate. Our property portfolio is comprised of private mansions, apartments usually within the “Golden Triangle” and the Jardin Public neighbourhood, as well as substantial residences in areas such as the Parc Bordelais and Le Bouscat.” Equipped with comfortable budgets, the agency’s clients are drawn by Bordeaux’s privileged location and its proximity to the Bassin d’Arcachon and the French Basque country, while posting prices less prohibitive than those on the Côte d’Azur. Furthermore, the city benefits from the prestigious reputations of neighbouring vineyard estates while being only two hours from Paris thanks to the LGV. “Since the deconfinement, we have received many calls from Parisian buyers who have realised that they can work from home and want to move permanently to our region.” On average, prices in Bordeaux range from 6,000 to 7,000 € per sq.m. “We recently sold an apartment of 250 m2 to residents of Bordeaux, close to the Quai des Chartrons and priced at 2 million euros. Near Jardin Public, we also orchestrated the sale of an apartment of 400 m2 prolonged by a terrace of over 200 m2 , pegged at 3 million euros, for a Franco-American couple. Finally, an English client has just acquired an apartment of 90 m2 for 800,000 € on the Cours du Chapeau Rouge, near the Maxwell Baynes Christie’s International Real Estate agency.”

Long known as the “Sleeping Beauty”, Bordeaux has caught up with prices posted by large European cities, according to Didier Laffargue, a property investment consultant since the year 2000 and a specialist in tax relief. “IPAD Immobilier was set up in 2012 because investment in real estate involves much more than the simple acquisition of a house or apartment. We assist investors in the structuring of the financial, heritage and tax related approaches to their property investment.” This specialist believes that, since the price corrections seen in 2019, transactions are being completed very quickly, with limited margin for negotiation. “Until recently, demand was significantly higher than supply, with fine properties rarely available for sale. The crisis now confronting us is likely to re-balance the market, as borrowers’ creditworthiness has been weakened ; consequently, the number of buyers may well decline. The cornerstone of the problem is now represented by banks which had already toughened up the terms under which mortgages were granted. Will they continue to support borrowers ?” Following a period of total shutdown, Didier Laffargue observed that, as from the second fortnight of May, several sales agreements had been signed, including a a good share of houses with gardens and apartments with terraces. “In communes on the periphery such as Mérignac, Bègles and Pessac, many transactions are going through today, a sign that a recovery is underway. Furthermore, prices for new properties in Bordeaux – 180,000 to 220,000 € on average for 1-bedroom apartments - are now close to those for old buildings. They therefore appeal to a growing number of first-time buyers and rental investors who benefit from reduced acquisition expenses while becoming owners of properties much more advantageous in terms of energy consumption.”