Villeurbanne, an extremely diverse property market

At the end of the late 19th century, this town, now home to 138,150 residents, became the working-class district of Lyon. More than a century after its development, it attracts an open-minded clientele in search of culture, quality of life and convenience. Focus on the second largest community in the Rhône.

La Tête d’Or, the largest urban park in France covering about 292 acres, lies to the west, the 3rd “arrondissement” of Lyon to the south, Bron and Vaulx-en-Velin to the east, while the river defines the northern boundary. 93 % of residents live in apartments. Despite Villeurbanne's original vocation, only 19 % make their living from industry and 6 % from construction ; today, 75 % work in the service sector. The commune, which already housed the Institute of Contemporary Art, became home to Le Rize, Centre Mémoire et Société, in February 2008, ie. 2,660 m2 entirely dedicated to culture. The Théâtre National Populaire, undergoing renovation, has an excellent reputation throughout France. Each year in June, the live arts show “Les Invités de Villeurbanne” shines the spotlight on music and street performances, attracting nearly 80,000 spectators. Proud of its 150 acres of parks, the town offers lots of lively associations, over 200 sports clubs and a campus ranked among the best in the urban area. Le Doua in fact accommodates 20,000 students, 1,600 researchers, 1,200 doctorate students, 2,500 administrative employees and 700 members of staff. The commercial momentum is self-evident, as witnessed by Avenue Henri Barbusse and Place Grandclément.

“Services provided by public transport are both adequate and frequent. Only four metro stops separate Villeurbanne from the Hôtel de Ville in the Rhône-Alpes capital, which can also be reached by tram or bus. The locals in fact consider the locality as the 10th “arrondissement” of Lyon,” laughs Gilles Vaudois of Laforêt Immobilier. In the days of soaring prices in 2003 and 2004, Villeurbanne's rates were much lower than those posted by its illustrious neighbour, especially since the many new developments being delivered prevented any rise in prices for older housing. They then rose like everywhere else, but to a lesser extent than within the Prefecture. Comfortable and practical, the apartments benefit from terraces and parking facilities and finally meet current expectations. With handsome mansions of the 1900’s, residences built in 2000, the “pavillons” of Flachet and warehouses converted into lofts, diversity figures strongly among the town’s characteristics. A 2-bedroom apartment in a 1900's building ranges from 160,000 to 190,000 €, the same in a 1980’s apartment block, 180,000 to 240,000 €, a house of 140 m2 with a terrace of 50-70 m2, 280,000 to 350,000 €, and a lot of 200 m2 to rehabilitate, 300,000 to 350,000 €. Most buyers, employees or middle managers, are launching into their first acquisitions with budgets of 180,000 to 220,000 €, encouraged by prices about 15 % lower than those in the 3rd “arrondissement”. If it slowed down when the crisis was first announced, the market soon picked up and is now doing relatively well.

“Following a logical and beneficial price drop of 10 %, stability is the order of today. Low interest rates stimulate demand, which exceeds supply in some segments,” notes Madeleine Maiffredy of Orpi Cité Immo. Overall, the sq. metre ranges from 2,000 to 4,000 €, reflecting the wide variety of housing available, with an average of around 2,600 €. Charpennes, République and Gratte-ciel, ie. the historic and classified hyper--centre, are the most sought-after neighbourhoods. Along the metro line, they offer convenience stores, a wide choice of schools and facilities that make life easier for families. Villeurbanne naturally appeals to first-time buyers, but also locals, happy to stay put, and others who moved in because of the affordable prices and are now staying on by choice. The sale of a first home allows them to aim for a 3- or 4-bedroom apartment in a high-class residence from 250,000 €, or a house to restore or enlarge between 220,000 and 250,000 €, requiring an investment for renovation of 100,000-150,000 €. “Sometimes residents of the 6th or 3rd “arrondissements” become interested in Villeurbanne areas close to Lyon, such as Charpennes, benefitting from two metro lines,” adds Jean-Paul Veloso of Akerys Immobilier. They appreciate the freedom allowed by industrial buildings and the proximity of the park of La Tête d’Or. Specializing in this niche market, Jean-Paul Veloso says 50-60 % of his customer portfolio is comprised of investors. Willing to pay from 90,000 to 160,000 €, they set their sights on apartments with 1+ or 2 main rooms, or even 3 main rooms in old buildings, which they rent from 500 to 900 €/month, depending on the surface area, condition and location. The yield on small units is about 6 %. The presence of the Le Doua campus encourages these investors. Students, excellent tenants, are fond of République and Charpennes. Some parents buy apartments for their kids, at the same time acquiring an asset which will be a long-term generator of income. Real estate is, in fact, benefitting from the Frenchman’s current disillusion with financial investments. New developments are few and far between. Though developers are clearly taking advantage of every opportunity to position themselves in Villeurbanne.