The area around Chambéry : post-crisis overview

Situated between the Massifs of Les Bauges and La Chartreuse, the urban area around Chambéry is comprised of 24 communes, including the Prefecture of Savoy, ie. 126,000 inhabitants in all. Since the end of the Second World War, the community has seen significant population growth.

The University of Savoy opened its doors in 1979, bringing a student population which is today vital to its economy. 55 km from Grenoble and 48 km from Annecy, the “Alpine crossroads of Europe” also welcomes 1,300 new-comers each year who can choose from living “intra-muros” or on the immediate outskirts, in Saint-Alban-Leysse, Jacob-Bellecombette, Barberaz, Bassens, Cognin, La Ravoire or the larger town of La Motte-Servolex.

“Since last March, we have received more enquiries for the historic capital of the “States of Savoy”. And a property will sell within close on three months if it represents good value for money,” says Olivier Graillat of the agency of the same name. Apartments are doing better than houses, and buyers prefer the south, Saint-Alban-Leysse, Challes-les-Eaux, Bassens and Saint-Baldoph, to the north, with the exception perhaps of La Motte-Servolex, well-endowed with shops, services and infrastructures. Surrounded by vineyards, these villages are not far from the centre of Chambéry, a 35 minute drive from Grenoble, a saturated address and thus significantly more expensive. Saint-Ismier, for example, posts prices 30 % higher. Popular among the elderly in search of convenience, the historic centre is always in demand, especially now that plans for the shopping centre have been approved. Fans of apartments spend on average from 250,000 to 300,000 €. A 3-bedroom apartment of 86 m2 in a residence less than three years old at La Motte recently sold for 266,000 €. Those looking for villas, ready to spend from 350,000 to 400,000 €, have more a problem, as quality products start at 400,000 €, the budget required for a new house of 110 m2 with a garden of 1,000 m2 in Jacob-Bellecombette, a popular village just 5 minutes from Chambéry and facing the lake. A quarter of the buyers are looking for investments costing from 50,000 to 120,000 €, happy to obtain a return of around 6-7 % thanks to a relatively lively rental market.

Jérôme Stefani of Zen Immobilier, based in Saint-Alban and, since more recently, in Chambéry itself, distinguishes between three main areas : intra-muros, the north basin and the south. In the Prefecture itself, the old centre proposes buildings with character, but often without parking places or elevators. Here, apartments with 4/5 main rooms are priced from 250,000 to 300,000 €. Then, Les Charmettes and the lower part of Bellevue offer a bucolic environment, a 3-minute walk from the latter. Here, a 3-bedroom apartment ranges from 160,000 to 180,000 €. Bissy, with its easy access, offers individual housing, mostly in need of refreshment, from 250,000 €. Near the motorways to Albertville, Grenoble and Annecy, the south, composed of towns on a human scale, offers beautiful surroundings within a 10-minute drive from the Place du Palais de Justice. Except for La Motte-Servolex, the north fails to generate the same level of interest. Recently, a couple paid 245,000 € for a det-ached house of 100 m2 in need of a lick of paint, with a garden of 500 m2.

“Due to the crisis, prices have, of course, dropped, but to different extents depending on the neighbourhood’s assets, the property’s condition, appointments and architectural period,” says Laurent Benoist of Century 21 Benoist Immobilier. Thus, the areas bordering the ZUP (Chambéry-le-Haut and Chambéry-le-Vieux), running along the main roads (Joppet) or out-dated accommodation in Bissy may well have lost up to 20 % of their value. Conversely, high-quality offerings, developed on an intelligent and esthetic basis, are holding steady. It is obvious that under current circumstances - namely, a contracted market and blind media hype -, working conditions are more difficult. In addition to systematic bargaining, not necessarily conclusive, this estate-agent has to deal with a lack of visibility, a rather poor stock, cautious “wait-and-see” owners, as well as still hesitant buyers. Fortunately, first-time buyers, attracted by low int-erest rates and tax incentives, are ready to take the leap.Monica Tornicelli of Laforêt Immobilier also prefers informed analysis to casual statistics and other generalities. It in fact appears that Jules-Ferry and the Parc du Verney, central, quiet and less busy, are riding a wave of success. Prices here have changed very little : as witnessed by the sale of a 3-bedroom apartment of 80 m2 for 230,000 €. In contrast, Chambéry-le-Vieux reflects the decline, in terms of both prices and demand : an apartment of 108 m2 recently changed hands here for 175,000 €. In January 2008, it would have fetched 190,000 €. Houses show a sharper decline than apartments. Investors and first-time buyers constitute two-thirds of the total and will not pay more than 250,000 €. If home-owners wanting more space, now fully informed, are making a comeback, caution is essential and bridging loans often hidden in the background. All clients expect full information and services from real-estate agents.