Romans-sur-Isère, an excellent location

Between Provence and the region around Lyon, the Alps and the Massif Central, Romans stands on the right bank of a tributary of the Rhône, 20 km north-east of Valence, 8 km from the TGV station and 15 km from the Autoroute du Soleil. Connected to Grenoble by the A49, this commune in the Drôme has a population of 33,700.

In the 1970’s, the French capital of shoe manufacturing was badly hit by the crisis suffered by its main activity, and also that of the tanning industry. At the turn of the century, its firms were still holding out, but were unable to reinstate the level of employment attained at its peak. In parallel, the agro-food industry was beginning to develop, and by playing host to Marques Avenues the town restored its commercial tradition. 67 well-known brands now share the former barracks, rehabilitated by Jean-Michel Wilmotte.

“Investors here account for 30 % of our clients,” says Catherine Vicat of Vic Immobilier. “Most are from the Drôme, distrustful of the banking system and up-coming tax schemes, and thus looking to invest their savings in real estate. They consider this solution as an excellent way of handing down their assets.” They buy small 2-bedroom apartments built in the ‘60’s or ‘70’s priced between 70,000 and 80,000 €, rented out at 400-450 € per month excluding charges. Gross return ranges from 7 to 8 %. In 2011, first-time buyers, ie. 40 % of the clientele, benefitted from the zero percent loan to obtain apartments in residences from 100,000 to 120,000 €, or 4-bedroom houses with gardens of 400 m2 on estates, costing from 150,000 to 200,000 €. The remaining 30 % were likely to invest up to 500,000 € in villas of 200 m2 in perfect condition, with grounds of 2,000 m2. These purchasers work in Romans or arrive from another region, already retired and drawn by the assets offered by the area, only 2 hours10 minutes from Paris on the TGV, 1 hour from Marseille. While the flow of clients from north to south is the largest, Catherine Vicat also points to movement in the opposite direction, notably motivated by prices that are still affordable here in the Drôme. Satisfied with the agency’s activity in 2011, she is looking forward to the coming year with caution and some reserve. “The abandonment of assistance schemes for first-time acquisitions could have a serious impact on the financial capabilities of young households and lead to a more uncertain climate.”

“The majority of apartments sell for 1,300 to 1,600 € per sq. metre,” notes Denis Maisonneuve of Guy Hoquet L’Immobilier. “If you take a closer look, the Energy Performance Diagnosis (EPD) has become an important factor in negotiations. Houses which require no renovation, prolonged by gardens of 300-600 m2, ranging from 205,000 to 225,000 €, also find takers. Even more easily if they benefit from the peacefulness and rural setting of villages within a 5-10 km radius around Romans.” Fans of apartments show a preference for the town centre around Place Jean-Jaurès or in the Marques Avenue neighbourhood, while those looking for houses appreciate Les Méannes to the north but near the town centre, and Les Ors to the west, with a more countrified atmosphere. Generally speaking, clients tend to react to announcements made by the government. Their confidence in the future and real estate undoubtedly depends on a return to tax-related stability. Only 1 hour from the ski-runs and 90 minutes from the sea, Romans can nevertheless already count on weighty arguments, starting with its geographic location within a solid communication network and more affordable prices than those posted in the area around Valence. Not forgetting the quality of life and a fondness for traditions. The town never misses a chance to celebrate its well-known ravioli and “pogne” (a kind of brioche with dried fruit).

A third of the sales handled by Jean Bernardis and Stéphane Hybord of Hybord Immobilier concerns 1-, 2- or 3-bedroom apartments in Romans or Bourg-de-Péage, two addresses only separated by the River Isère, and practising the same prices. The other two-thirds concern houses, usually of around 100 m2 with gardens of 600-800 m2, priced from 190,000 to 240,000 €. Among their most recent sales, they mention an apartment of 80 m2 with a garage and balcony, two criteria of prime importance, sold for under 150,000 €, and a newish house on the southern outskirts of Romans - 100 m2 all at ground level with a garden of 600 m2 - for 226,000 €. Prices drop or surface areas increase as one gets further away from the main towns, with the exception of a few micro-markets on the first outer ring : Mours-Saint-Eusèbe, Genissieux, Peyrins, popular villages on the hillsides facing Le Vercors. The southern part of Bourg-de-Péage enjoys a natural ambiance due to its proximity to Valence and Rovaltain, known for its TGV station. This area is seeing real expansion : people are even talking about the up-coming creation of activity hubs centered around spearhead technologies. For the past three years, Romans-sur-Isère has enjoyed real price stability and a harmonious balance between supply and demand. Even though national business indicators are not necessarily all green for go, our estate-agents are looking forward to the coming months with relative serenity.