Valence, crossroads of the Rhône

On the left bank of the river, the town commonly known as the “Gateway to the Sun” is home to 65,260 inhabitants, 167,160 in its greater urban area. 90 km from Grenoble, and 100 km from Lyon and Avignon, this garrison town with excellent infrastructures enjoys a strategic location.

According to the INSEE, two-thirds of the revenue of the Prefecture of the Drôme are derived from the service sector and nearly 18 % from industry, food processing, metallurgical, mechanical and electronic activities. The area contains many activity centres, including the commercial zone of Les Couleures, Les Auréats, Briffaut Est-Ouest, the plateau of Lautagne, Les Technoparcs and the Hôtel Cime. The TGV station is not far from the historic heart of town, and the river-harbour offers 460 mooring spots. This City of Art and History is constantly embellishing the 40 km of canals lined with poplars and willows.

“In the crisis over the past 24 months, prices have dropped 10-15 %. In the autumn of 2008 we suffered from the general slump, though 2009 showed an improvement thanks to first-time buyers. And the first half of 2010 has confirmed the trend with the return, albeit timid, of substantial budgets,” says Michel Courbis of Guy Hoquet L’Immobilier. Clients making their first purchase in fact account for 80 % of overall demand. They generally pay 90,000 to 130,000 € for a 2-bedroom apartment with a cellar and parking place. Purchasers of second homes, often from the Paris region, and even Lyon, do not exceed 10 % of the market. One such client has just invested 550,000 € in a villa of 200 m2 with grounds of 4,000 m2 and a swimming pool, in Beaumont-lès-Valence. This type of operation is, however, exceptional. In this particular category, most buyers can afford around 300,000 € without resorting to a loan. Investors, sure of obtaining a profit of 4-6 %, prefer old buildings rather than new, the latter being rather scarce as national developers retired from the area with the first signs of the downturn. These acquisitions do not exceed 150,000 € and investors buy properties they like : the era when dizzy figures acted as a lure are long gone.

Vincent Borel of Danton Immobilier Century 21 agrees with his colleague : “The first-time buyer is now our main target.” Among his recent sales, he mentions a 2-bedroom apartment of 68 m2 in need of renovation in the Château Vert area for 82,000 €, and another of 57 m2 needing a lick of paint on Avenue de la Liberation, in the southern part of town, for 86,000 €. In both cases, the buyers were 24 years-old and needed a 100 % mortgage, obtained without difficulty. A 30 year-old also recently acquired a 2-bedroom duplex of 45 m2 for 71,000 €, which is likely to find a tenant at 470 € per month. Investors aim for a net return of at least 6 %. With a bud-get of 305,000 €, a local employee aged about 40 bought an apartment of 147 m2 prolonged by a terrace, with a view of Valence, the Ardèche and the Rhône. Finally, a bank employee transferred to the region paid 362,000 € for a recent house of 200 m2 on three floors. All potential buyers are familiar with the market, regardless of their profile or the neighbourhood they are targetting.

Based in Valence since 1990, Anne-Marie Amouroux of the Amouroux Immoblier agency specializes more in large properties, residences of character and luxury apartments. Her file, containing 80 references including less than ten apartments, ranges from 350,000 € to close on 1 million euros, the price-tag on a “mas” with a house for guardians, ie. living space of 450 m2 + 135 m2, plus outbuildings of 350 m2 in almost 2.5 acres of grounds. Unfortunately, this type of property still reflects 2007 prices and transactions are only concluded if the sellers are prepared to lower their prices significantly. The same goes for bourgeois apartments, sought after by the over-60’s : one such example of 170 m2 with a terrace and garage is priced at 420,000 €, whereas potential clients draw the line at 400,000 €. In spite of tough negotiations and fewer contracts signed, handsome mansions built in the 1930’s are holding their value and are popular among executives under 40 years old with working wives. Able to afford 400,000 to 500,000 €, they aim for the centre of Valence, closeness to reputable schools and the train station to facilitate their frequent trips to Paris, Lyon and Grenoble, dynamic pools of employment. With 500,000 € or more, others prefer old stones and the countryside : they usually have teenage children and want to stay within a radius of 15 km around Valence. As for people transferred here in the summer of 2010, they seem to prefer renting : rushing into things is no longer a sign of the times. Guest-houses of 300 m2 with at least 2.5 acres of land, costing from 400,000 to 600,000 €, finally seem to be back in favour, as the region definitely benefits from potential in terms of tourist attractions.