Hendaye, at the heart of the Basque country
By Laetitia Rossi - 21 June 2010
Situated in the province of Labourd, Hendaye is bounded by the Bay of Biscay to the north, La Bidassoa to the south, and the bay of Chingoudy to the west, the natural border between France and Spain. After suffering the effects of the crisis for the past 18 months, the market seems to be getting its breath back. With new prices and a somewhat different clientele…
This charming town in the Basque country boasts a beach of 3.5 kilometres, the longest on the coast, and no fewer than five distinct neighbourhoods. The seaside resort is home to the famous Serge Blanco thalassotherapy centre, lots of restaurants, the start of the GR10 hiking trail crossing the Pyrenees, and the third largest yacht marina in Aquitaine, with 850 boat moorings.Then come the area in proximity to the railway station, the village facing the bay of Chingoudy, Les Joncaux known for its industrial zone, Lissardy, L’Empereur and Orio, ie. the residential hillsides, and finally Les Bas-quartiers, a neighbourhood with old town houses. Border related state services contribute to the local economy, as do the Joncaux and Dorrondeguy business parks. Starboard, the Decathlon watersports company has been manufacturing its products on the port for the past six years, while the tourist industry, which dates back to the late 19th century, represents nearly 16 % of the town’s total revenue. The resort has all the shops and services needed for the day-to-day life of the 14,000 residents, including schools up to secondary level. “The beach, seafront and bay of Chingoudy have long been the most privileged and sought-after addresses,” say Christine Laguillon of the Agence Laguillon and Sylvie Lafenêtre of Argoyti Immobilier. The sq. metre here costs 5,000 € on average, a price implying walking distance to the ocean, but not a panoramic sea view. Buyers from Bordeaux, Toulouse, Pau and Paris are interested in 1- and 2-bedroom apartments, while a few rare Spanish investors with budgets of 1 million euros have been acquiring villas in need of a little refreshment over the past few months. Locals are showing new enthusiasm for the centre and train station neighbourhood. They appreciate being able to shop or use public transport without having to use their cars. Many use the “topo”, the elevated railway taking them to San Sebastian in just 35 minutes. Until 2008, 80 % of buyers came from across the Spanish border. They have now been replaced by the locals of Hendaye, who are taking advantage of a 25 % drop in prices to become home-owners. In this part of town, a 1-bedroom apartment costs 140,000 €, two bedrooms 180,000 €. On the hills, the bulk of recent transactions concerns houses of 80 m2 in need of renovation with gardens of 500 m2, priced from 280,000 to 300,000 €. Overall, demand for houses peaks out at 500,000 €. Even rents have undergone a correction, so investors now have to focus on good locations to make sure they will find a tenant and ultimately an acceptable price when they decide to re-sell.
“These investors are not falling over each other,” notes Lurdes Ugalde of Century 21 Agence Donibane. “In fact, developments are limited, even when they’re eligible for Scellier tax benefits. As for the return on investment, it ranges from 3.5 to 4.5 %.” 80 % of clients are acquiring their main home, with budgets of 220,000-240,000 € for 3-bedroom apartments, 280,000-300,000 € for a terraced house of 90 m2 with a garden of 100 m2, and 400,000 € in the case of a classic property of 120 m2 set in a garden of 600 m2. Half of them come from Spain, a country where real estate is expensive despite economic pressure, and also in limbo due to a “wait-and-see” attitude adopted by owners. Those looking for holiday homes, still hesitant despite the recovery that began at the end of 2009, spend from 150,000 to 220,000 € on a cosy pied-à-terre positioned not only to ensure personal enjoyment of its use, but also to reap the benefit of possible seasonal rentals. If a sea view is always in high demand, it costs as much as 8,000 €/m2, ie. 3,000 €/m2 more compared to an identical product. Our experts agree that, while the market is beginning to recover, it is far from euphoric. With the lessons learnt from the past eighteen months, they are putting the emphasis on prudence and professionalism.