Divonne-les-Bains, an international address

Over 100 nationalities are represented in this thermal spa in the region of Gex. Situated between the Jura and Lake Geneva, on the frontier with western Switzerland, Divonne, which belongs to the greater “Franco-Valdo-Genevoise” urban area, offers many attractions only 20 km from the Swiss business hub.

Built in 1954 and incorporated into the Partouche group in 2005, the casino is one of the main attractions in this town in the Ain, together with the proximity of Lake Geneva, new thermal baths, the hippodrome, artificial lake, watersports base, 18-hole golf-course, cultural centre, theatre-cinema and high-quality shops. 400 hotel rooms and 380 apartments in tourist residences accommodate ever-increasing numbers of holiday-makers. This is a pleasant place to live, where people work hard : per household income is, in fact, well above the national average. 78 % of Divonne’s accommodation is occupied on a year-round basis versus 14 % of holiday homes. 53 % of the stock consists of apartments, 43 % of houses.

“The market is very active, all segments combined, and whatever the price range,” says Catherine Arrou-Vignod of Divonne Immobilier. Its buoyancy depends entirely on Switzerland, the dynamism of Geneva and the growing number of companies moving into the canton of Vaud. In France, the cost of bricks and mortar, and living expenses in general, is lower and the shortage of housing, though real, less severe than in Switzerland. The challenge for estate-agents lies in their ability to meet demand. Always highly-prized, small new residences are again selling on plans at 5,500 €/m2 and more. They benefit from the low energy BBC standard, terraces, garages and generous living space. Starting at 3,500 €/m2, apartments in old residences post an average of 4,000 €/m2. The slight difference between old and new, and the low turnover observed in the former explain rising prices in more recent offerings. The villa is not immune either to the scarcity factor. One example built in the 1960’s - 105 m2 with a garden of 1,400 m2 likely to be cut in two - found a buyer on the first visit at 625,000 €. Another built in the 1970’s - 160 m2 fully restored, in grounds of 1,200 m2 - changed hands at 885,000 € without any negotiating. If they deserve it, detached houses can easily exceed 1 million euros. Similarly, when a building plot, currently costing around 400 €/m2, appears on the market, developers take up their positions. Population flows between France and Switzerland are constant and lending rates for “frontaliers” still attractive.

“New accommodation in Divonne averages out at 5,800 €/m2. That, in any case, is the price posted for the development H2Ome by Villes et Villages Créa-tions - 93 BBC apartment houses topped by planted and lawned roofs,” says Eric Bentejac of the Cabinet Landecy et Associés. Commercialised since last January, 40 % of this address is already reserved. Developers finally seem to be responding to the expectations of potential buyers, in terms of both architecture and appointments. New offerings are naturally taking advantage of the lack of old housing. If the investor is sure of obtaining a sound long-term asset and the guarantee of a quick and fruitful resale, the gross yield will range from 4.8 to 5 %. An apartment freshly risen from the ground can theoretically be rented out for 26 €/m2 per month, whereas an already existing apartment of quality brings 22 €/m2 per month. Villas are faced with a similar reality that is unlikely to change course, with local urban planning preventing the development of estates and encouraging more concent-rated accommodation. Everyone in Divonne appreciates its cultural and leisure facilities, the Sunday market and the site’s natural beauty. The only downside is the lack of amenities for very young children.

“When a client enters the agency, he has already set his heart on the region of Gex in general and Divonne in particular : it is the most highly-prized commune in the area, just ahead of Ferney-Voltaire. Very often, he refuses to consider possibilities on the outskirts, however close by,” says Sébastien Feuchot of Orpi Gex Immobilier. A 15-minute drive from Geneva’s train station and 30 minutes from Lausanne, Divonne owes its success to its pretty scenery and a good choice of restaurants, bars and entertainment. The agency’s recent sales include a house of 250 m2, built in 2000 in grounds of 1,500 m2 with swimming pool and jacuzzi, that a foreigner making regular business trips to Geneva acquired for 1.1 million euros. The market for holiday homes, largely fueled by the Saudis and East Europeans, is doing well. Then a rental investor just purchased a studio of 25 m2 to renovate in a village house, for 90,000 €. Finally, a third client paid 310,000 € for a building plot of 900 m2, on which he intends to build a pair of semi-detached houses with a total surface area of 240 m2. He will live in one and rent the other. “Since the third quarter of 2010, prices in Divonne have moved slightly higher, while the time it takes to sell has shortened considerably,” concludes Sébastien Feuchot.

These articles might interest you :

Update on the borderline market

Whether in Le Pays de Gex or Upper Savoy, the real-estate market on the border with Switzerland is still in good shape. For both new and old properties, buyers have a wide choice. Possibly a little too wide ?…

 

Le Pays de Gex, a privileged location

At the gateway to Geneva with its airport and international institutions, Le Pays de Gex appeals for its natural, quiet and residential setting. Benefiting from efficient transport networks, shops and amenities, this area in the north-eastern part of...

 

Annemasse, a very buoyant market

An average-sized town with 32,000 residents, Annemasse offers the advantage of a convenient location on the Franco-Swiss border, 2 km from the canton of Geneva. Its very lively property market mainly revolves around acquisitions of year-round homes b...

 

Le Pays de Gex, a market in its own right

Lying in the midst of luxuriant landscapes between the Massif du Jura and Lake Geneva, Le Pays de Gex offers immediate proximity to the border with Switzerland as its N°1 feature. This strategic location endows its with a unique and persuasive argume...

 

The Franco-Swiss region known as “Le Pays de Gex”

Between the Jura mountains and Lake Geneva, the main assets of Le Pays de Gex are its magnificent green scenery and, above all, its immediate proximity to the cantons of Geneva and Vaud. A strategic position, boosted by very efficient transport netwo...

 

La Chautagne, an authentic region

At the north-western tip of the département of Savoy, La Chautagne consists of 8 communes on the banks of Lake Bourget, the largest natural lake in France.