Chambéry : a buoyant market for new properties
By Laetitia Rossi - 16 April 2013
Situated in the northern pre-Alps between the Massifs of Les Bauges and La Chartreuse, the prefecture of Savoy is home to 56,500 people. It has long made its living from its administrative services and the army. Since the 1950’s, Chambéry has been struggling with fast-growing population figures, fuelled by the installation of the University of Savoy in 1979.
The “natural crossroads of Europe” lies halfway between Grenoble and Annecy. Bombed by the Allied Forces in May, 1944, the old town centre was partly destroyed. In 1960 and 1961, Bissy and Chambéry-le-Vieux became part of the capital of Savoy. Due to on-going expansion, the site is usually referred to as the “bassin chambérien” rather than the intra-muros town of Chambéry itself. Every year, the agglomeration welcomes 1,300 new residents. Living accommodation in Chambéry consists 90 % of main residences, 82 % of apartments, 14 % of houses and 70 % of homes with 2 bedrooms or more. Over the past three decades, its housing has doubled.
“The last semester was clearly affected by tensions in the economy, with a real slowdown in the flow of activity,” says Olivier Bruchon of Générale Immobilière. “The market is undergoing a visible change : fewer than in the past, determined and well-informed buyers are now in a very strong position when it comes to negotiating.” Faced by lower prices, owners tend to put off their plans to sell. Our estate-agent mentions several purchases of new properties, small surface areas, two-thirds of which are acquired by rental investors. These clients benefit from a gross return of 5 % and the Duflot scheme, which is appealing in the Chambéry area due to ceilings on rents and resources. One-third of those buying in new developments are looking for year-round homes and value for money which is competitive as compared with older properties. By way of example, “La Résidence du Parc Saint-Michel” posts prices of 2,900-3,100 € per sq. metre. Those interested can obtain tax benefits, assistance in financing and the advantages of low-energy BBC construction. An old house of 150 m2 in need of modernization, with a garden of 800 m2, has just found a taker at around 360,000 €. Houses under 300,000 € are hard to find. Above 400,000 €, buyers are thin on the ground. One young client then acquired a 1-bedroomed apartment of 50 m2 in need of a revamp in Barberaz, benefiting from a balcony, garage and cellar, for 130,000 €. Intra-muros, a 3-bedroomed apartment costs 200,000 € on average, though some attain 300,000 €. This category suffers from a relatively unstable employment market and borrowing conditions which are once again quite drastic.
Based in the outskirts, Sylvain Carle of Ailleurs Immobilier agrees with Olivier Bruchon on the buoyancy of the market for new properties, especially houses freshly risen from the ground within the first ring. He recently participated in the marketing of a development north of Chambéry, a peaceful, countrified area at the junction of the A41 and A43 motorways, and the crossroads between the towns of Annecy, Grenoble and Lyon. 3-bedroomed apartments of 90-100 m2 sold without any difficulty for 260,000-270,000 €. A similar residence could soon be built in Chambéry south. Despite extremely low mortgage rates, first-time buyers seem to be waiting for a further decline. Over and above 350,000 €, the market almost grinds to a halt. Even so, a correctly estimated property can leave the files without delay. One example of 120 m2 with a garden of 350 m2 in Chambéry-le-Vieux was snapped up at 326,000 € after being on offer for only one week in the agency. The current requirement to put down a deposit of 10-20 % is not making it easy to obtain loans, which consequently hampers sales of properties in the 150,000-200,000 € bracket. Building land is still popular despite the introduction of the RT 2012 and the inevitable increase in the cost of construction. Depending on the address and orientation, serviced plots of 500 m2 range from 120,000 to 140,000 €.
“There’s no notable difference between the centre of Chambéry and its outlying area,” says Laurent Benoist of Century 21 Benoist Immobilier. Targeted by investors and young families, the lower end of the market still benefits from a certain mobility. In fact, the property market is reduced to relying on acquisitions made out of necessity. The notion of buying for one’s own personal enjoyment is disappearing, despite the undeniable assets offered by Chambéry. Starting with its social, cultural and leisure facilities, combined with good road, rail and air connections. While retirees and employees transferred to the region regularly ask for information with an eye to moving in soon, purchasing power in this administrative centre does not attain that of smaller towns nearby, where residents earn their money on the far side of the Swiss border.