Divonne-les-Bains, a cultural crossroads

Between the Jura and Lake Geneva, not far from the frontier with French-speaking Switzerland, this small spa in Le Pays de Gex hosts over 100 different nationalities. It is only 20 km from Geneva, the economic hub to which it owes its success...

Located in the Franco-Vaud-Geneva conurbation, Divonne offers many assets : recently up-dated thermal spas, a race-course, artificial lake, 18-hole golf-course, nautical base, theatre, cultural centre, not forgetting the casino built in 1954 and now managed by the Partouche group. The commune of L’Ain is attracting a lot of interest, with visitors reserving the 400 hotel-rooms or 380 apartments available in tourist residences. 78 % of the homes are occupied year-round, 14 % are dedicated to occasional use. Accommodation is split 43 % into houses, versus 53 % of apartments. The proximity of Geneva and the canton of Vaud is an important factor in the area’s popularity among the residents, whose income far exceeds the average salary in France.

”For the past six months, the market has been tense, either due to the elections or the new tax year,” comments Catherine Arrou-Vignod de Divonne Immobilier. Currently, a development pegged at over 6,000 €/m2 is having trouble finding takers, despite the popularity of new apartments, sustained demand and a clear need for new housing. The price alone explains this hesitant start to its commercialization. The symbolic barrier seems to be 5,500 €/m2. In the case of resales, estate-agents have to play their informative role for sellers, and resist the temptation of joining the race to obtain representation and thereby making persuasive arguments. Among her recent sales, Catherine Arrou-Vignod mentions a 1930’s house of 100 m2 to restore, in grounds of 860 m2, at around 650,000 €, and a 3-bedroom garden-level apartment of 73 m2 sold on plans, with a cellar and garage, priced at 372,900 €. The buyers, with high purchasing power, work exclusively in Switzerland. In addition to the qualities of this town on a human scale and the surrounding countryside, they appreciate the more affordable prices than those posted on the Swiss market, which is also hit by a shortage of availabilities. The address in fact enjoys a strategic location between the cantons of Geneva and Vaud.

”The real difficulty lies in the value-for-money ratio,” notes Didier Bastien of the Agence Bastien. “All the various price-ranges draw interest as long as price-tags are justified by the amenities and appointments.” This observation applies to all market segments, regardless of the property’s age. There is a general sluggishness which does not solely concern Divonne, which is still managing to hold its own. Both sales and rentals, an active sector at the moment, clearly owe a great deal to the proximity of the Swiss business centres. The agency’s latest transactions include a 1960’s villa of 160 m2 to renovate in grounds of 2,000 m2, sold for 870,000 €, and a new 2-bedroom apartment of 75 m2, opening out to a terrace of 28 m2 in a small energy-efficient residence facing the Alps, at 484,000 €. Finally, investors set their sights on Le Pays de Gex, seen as a sound long-term investment. The agency in fact proposes new developments in Divonne, Gex, Saint-Genis-Pouilly and Prévessin.

“It’s hard to analyze the market in Divonne without delving more deeply into current realities in Switzerland,” says Sébastien Feuchot of Orpi L’Agence de Divonne. “If a buyer took out a mortgage in 2007 to acquire a home of 500,000 €, and sells it for the same price today, he only obtains the equivalent of 416,000 € due to the change in currency rates. In fact, if he wants to recover his initial out-lay, he has no alternative but to post a higher sales price.”

However, this situation concerns only a few sellers on the files. New properties present weighty arguments. Severe competition still has to be faced in Le Pays de Gex, fuelled by numerous developments already delivered or in the pipeline. Out of every ten sales handled by the agency, nine are apartments ranging from 220,000 to 480,000 €, three are rental investments, the other seven, acquisitions for personal occupancy. All the buyers work in Switzerland. In nine years of activity, Sébastien Feuchot has only handled one single client whose financing was not obtained in the currency of the neighbouring country.

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