The slowdown felt in the real estate market is hitting cities across the country unevenly. While some are increasing the number of corrections on the prices of goods for sale, others, like La Rochelle, are resisting the crisis.
According to data from Meilleursagents, over the last three months, prices are still increasing by 1.8% in the commune of Charente-Maritime, to settle on average at 4,977 euros per square meter for apartments: “We cannot not talk about a downward trend in La Rochelle. We are starting to see some adjustments of 1% to 2% after negotiation on the sale price, but nothing more,” notes Romain Crepaud, director of the Century 21 city center agency.
Enough to block the youngest candidates for accession in the city. “In the city center, the average square meter is closer to 5,500 euros for an apartment. In the most popular areas, such as Minimes, near the marina, the price is 6,000 euros per square meter. First-time buyers only have two options. Or go to towns more than forty-five minutes away by car, like Surgères. Either remain tenants,” specifies Mickael Gauduchon, managing partner of the ORPI La Rochelle agency.
Increase of 61.4% in ten years
As Meilleursagents points out, prices in the town have literally exploded, with a 61.4% increase in apartment prices in just ten years. A development significantly greater than what has been seen in cities like Bordeaux (46.5% in ten years), Nantes (42.4% in ten years) or even Toulouse (40.1% in ten years), yet very popular with buyers.
The high level of prices, associated with the tourist potential of the city, also influences the choices of investors. Entrenched behind its three mythical towers (the Lantern Tower, the Chain Tower and the Saint-Nicolas Tower), La Rochelle, with its arcaded shopping streets, has an atypical architecture. The multiple ports and the historical dimension of the city contribute to its tourist popularity. Nearly 4 million visitors come to La Rochelle every year.
Enough to attract a good number of investors, interested in seasonal furnished accommodation: “Standard market rents do not increase as quickly as property prices in La Rochelle. In 2004, investors could earn a gross return of 5%. Today, if they get by with 2.5% or 3%, that’s not bad. Hence the interest for them to turn to seasonal rentals. They know that in one week of rental they will receive the equivalent of a month’s rent,” explains Romain Crepaud.
