The property market in the Luberon
Laetitia Rossi - 30 September 2013
This very select mountain range straddles two départements from the Alpes-de-Haute-Provence to the plain of Le Vaucluse, alternating high altitudes with vast valleys. Created in 1977, the Regional Nature Park of the Luberon is comprised of 77 communes in all, an area of nearly 457,000 acres shared by 170,000 people.
Limestone hills and bountiful forests, cliffs in shades of ochre and fields striped with mauve lavender... Nothing’s missing from this picture-postcard image of Provence, not even drystone “mas”, those old farmhouses so typical of its rural scenery. In 1997, UNESCO added the Luberon to its World Network of Biosphere Reserves. In 2003, it made its entrance into the group of European Geoparks. AOC Côtes du Luberon and Côtes du Ventoux wines are produced here. A blessed land, also producing ochre, wheat, aromatic plants, wood and high-quality stone. And whether it focuses on nature, relaxation or culture, the region’s tourist industry is doing well. Music festivals and art exhibitions are regular features on the agenda.
“In both 2012 and 2013, the property market has clearly suffered from modifications to tax legislation and their coverage in the media,” comments Rudi Janssens of Janssens Immobilier. “An uncertain climate and the lack of long-term visibility are dissuasive factors for both French and foreign clients, who are perfectly prepared to postpone their plans of acquiring holiday homes.” Since the summer, activity has picked up somewhat in the sector for renovated old properties priced from 1 to 2 million euros. In addition to more encouraging figures for economic growth, it’s worth noting the positive effect of a return to the exoneration of capital gains over 22 years and, above all, the exceptional allowance of 25 % on all sales signed before August 31st, 2014. While buyers still listen to their hearts, they have also adopted a more rational approach. The quest for a sound, long-term investment within a stable context is thus quite logical. The Luberon has certainly won its letters of nobility, even at international level. Recently, three renovated “mas” from 300 to 400 m2, priced between 1.4 and 1.6 million euros, were acquired by American, Belgian and English clients.
“80 % of the transactions orchestrated by Emile Garcin involve second residences, and 80 % of the agency’s most recent sales fell into the 800,000 to 1.5 million euro bracket,” confirms Claude Reinhart. He also mentions a refocussing of interest on the “Golden Triangle” formed by Gordes, Ménerbes and Bonnieux, “more than an address, a label or calling card”. Some buyers come from distant lands, even the southern hemisphere. A positive reaction greeted the announcement of the incentive to buy before August, 2014. While no hasty decisions have been made, some calculations have been undertaken. Following a slight setback in prices, all the indicators are green for go. In Provence, a region that inspires real fondness and even passion, “love at first sight” still has its place. Claude Reinhart mentions a former abbey of 650 m2 near Roussillon, beautifully restored, acquired for 2.5 million euros after three months of marketing and without hardly any bargaining by a Swiss/Danish couple. Canadian clients then paid 650,000 € for a former presbytery of 180 m2, not far from the Golden Triangle, restored in a pure, clean style. A property’s history and authenticity prove to be very good sales arguments.
“Clients are all aware that the property market in the Luberon is appealing and often a source of capital gains over the long term,” explains Marc Gargani of the agency Immobilière du Château. “When these prospects for profitability, combined with the notion of personal enjoyment, are affected, activity inevitably shrinks.” Showing good results this summer, seasonal rentals gave rise to a higher number of potential buyers stepping inside estate-agency doors. This agency’s latest sales range from 215,000 € - bringing a villa of 140 m2 to renovate at the edge of the Luberon - to 1.6 million euros - the budget required for a restored “mas” of 670 m2. As always in complicated periods, bargaining is tough. Broadening the range of prices and the area covered is one solution. Especially as demand mainly falls into the 650,000 to 1 million euro bracket. By way of example, a “mas” of 280 m2 with a swimming pool on almost 4.2 acres of land in L’Isle-sur-la-Sorgue is currently worth 793,000 €. An equivalent property in the Luberon’s Golden Triangle would be priced at
over 1 million euros.