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Urban romance

01.05.2009
Author: Homes Overseas UK Edition
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At resort real estate, there are undoubtedly many advantages – but those who are going to be in your home only in the summer and is considering to rent housing to rent, you can think about buying a home in the city. In many cities of France real estate brings a good income from renting throughout the year – in Paris and Marseille vacationers come for the Christmas holidays, and on weekends.
The owner of an apartment in a large French city can be calm: if paying annual taxes and maintaining a house seems too expensive, you can always find those who want to rent it for a couple of days or for several years. And it's not just about the capital: Annecy in Haute-Savoie or Carcassonne in Languedoc-Roussillon may not have the same romantic reputation as Paris, but they can boast restaurants with equally fine cuisine, fine boutiques, museums and magnificent architecture.

The province is not what it seems

Of course, among the buyers of urban real estate in France, the residents of neighboring countries are the most, who can get to almost any major French city in a few hours on express trains and high-speed TGV trains. However, Russians will also not spend too much time on the road – the flight lasts about 3.5 hours, plus a short taxi ride from the airport.
Investments in real estate in large cities and suburbs provide a good income from renting out housing, such housing is easy to resell if desired, as a rule, its cost is quite stable. In other words, urban real estate is a less risky investment than a house in rural areas.
Paris, with its millions of tourists, has the main advantage of always having high rental rates. But those cities where modernization and infrastructure development are planned (for example, the city of Beziers), or cities that have been actively developing in recent years, such as Annecy, Montpellier and Nantes, will most likely be able to count on an increase in the cost of housing in difficult economic conditions.
Greg Grant, CEO of Holiday Rentals, notes the ever-growing demand for apartments in the central districts of Paris and other cities of France, which buyers use both for recreation and for the purpose of making a profit from renting. According to his data, the demand for central areas is four times higher than the average for cities.
Short vacations are becoming a European trend, and more and more people come to France for the weekend, choosing noisy urban areas where everything is nearby – therefore, unlike resort destinations, there is demand for the city center all year round. It is not surprising that traditional hotels have to put up with the increasing demand from tourists for apartment hotels that offer more spacious rooms and quite comfortable conditions for the same or even lower fee. Such apartments can be purchased as a property.

Location, location, location

In large French cities, condo hotels of the exclusive Mama Shelter chain will soon appear, housing in which is sold under the leaseback scheme. Eight hotels, residences de tourisme, the concept of which is based on the idea of boutique hotels, will open throughout the country by 2012.
In Paris, Mama Shelter includes 172 rooms decorated and furnished by the ubiquitous French designer Philippe Starck, who also worked at the Royalton and Paramount hotels in New York. This condo hotel should become a great example of funk in the interior, pleasing with outstanding, even outright color solutions. There will be a bar, a restaurant, a fitness center and an underground parking lot, which is very important in Paris with its eternal shortage of parking spaces. It takes a few minutes by bus or taxi from here to the Gare du Nord train Station.
Furnished studio apartments with an area of 16 or 24 square meters are sold at a price of 171,000 and 236,000 euros, respectively. The leaseback scheme assumes that the owner then rents out his property for 20 years, receives a guaranteed income of 4.2% of the property value per year, and is exempt from 19.6% VAT. The construction of the complex in the capital is planned to be completed in the very near future, and the name of Philippe Starck will provide the project with an extensive army of fans.
Note that in conservative Paris, the modernity of the project and even the condition of the property are not as important for success in renting as the successful location of the object. For example, in 2003, Briton Brendan Kirwan bought apartments in a house in Montmartre for 148,000 euros, in which it was barely possible to live, spent two months and 27,000 euros to turn them into an elegant apartment – and now rents it through the agency Swell Apartments, and the apartments are occupied for 95% time.
Among foreigners, the 1st arrondissement, where the Tuileries Garden and the Louvre are located, the 3rd Arrondissement with entire streets of ancient mansions, the 5th arrondissement and especially the Latin Quarter, the chic 6th arrondissement with the Saint-Germain-des-Pres quarter and, finally, the classic 18th arrondissement Montmartre and Moulin Rouge. Affordable offers can be found in the 10th, 17th and 19th arrondissements: one-bedroom apartments can be purchased at a price of 170,000 euros.

The bourgeois dream

In Annecy, a prosperous city on the shores of the lake of the same name, one of the cleanest lakes in Europe, various festivals, conferences and exhibitions are held all year round, you can spend an exciting weekend here, or you can choose Annecy as a permanent place of residence. Not only is it located on the northern, most popular shore of Lake Annecy, but it is also only half an hour away by car from the Alpine ski resorts.
The average cost of 1 sq. m. The cost of housing in Annecy for the French province is quite high – 3370 euros. But it is justified by the cleanliness and well-groomed city with many bars and prestigious restaurants. So, in the vicinity of Annecy, in the town of Verrier du Lac, there is the famous hotel with restaurant Auberge de l'eridan, noted in the most authoritative Michelin restaurant rating.
On the main street of Annecy, Avenue d'albigny, MGM is building a residential complex with a variety of options: from one-bedroom apartments for 252,000 euros to luxury penthouses with lake and mountain views for 1.66 million euros.
Those who are willing to sacrifice their location in the central part of the city may be interested in the more affordable Le Domaine du Saint Laurent project on a vast plot with untouched landscape. 11 buildings with 99 apartments are built in the traditional Savoyard style, a two-bedroom residence with underground parking here will cost 336,000 euros.
In the most expensive quarters of the city, a renovated studio can be purchased for 100,000–150,000 euros, and apartments with one or two bedrooms in good condition for 180,000-220,000 euros. According to the French company Foncia, now that real estate prices do not change at best, in the best areas of Annecy, the cost of housing in 2008 continues to rise.

Tales of the old town

Carcassonne combines two completely different cities. At the top of the hill, behind the ancient city wall, the fairy tale of the old La Cite begins, with its drawbridges, towers and cobblestones, protected by UNESCO. Nearby, at the foot, there is a medieval lower town, called Bastide Saint Louis: bars, shops, cafes and restaurants are crowded here, as well as various household and service services necessary for everyday life. In this part of Carcassonne, most real estate transactions are carried out.
According to Leza Le Berre from Carca Sun Immobilier, studio prices start at 60,000 euros in the lower city. For 80,000 euros, you can afford a two-bedroom apartment, which, however, requires major repairs. A two–bedroom apartment in good condition will cost 100,000 euros, and charming stylish apartments of a larger area can be bought for 150,000- 200,000 euros - the price depends on the size and condition of the housing. However, you should set up in advance for the costs associated with repair and operation: in many old houses, for example, the heating system does not work well enough.
In the city center, next to the bustling Carnot market square, two–bedroom apartments cost from 140,000 to 160,000 euros, but balconies in these old houses are very rare. For 240,000 euros, you can afford a spacious duplex apartment in a picturesque old building with a roof terrace and a 360° view of the surrounding area.

With the past and the future

Marseille, the second largest industrial and student city in France, is undoubtedly interesting not only from the point of view of investment, but also as a place for permanent residence. It boasts both a developed tourist infrastructure and a variety of entertainment, cultural and shopping centers, as well as excellent transport accessibility. What can we say about the close proximity to the Cote d'Azur?
Agent Claire Didman, who works in Marseille, says: "The reputation of this city is quite controversial, but it is incredibly promising, the government is now making significant investments in its modernization. Already, most of the architectural monuments of Marseille have been restored, new hotels and business centers have suddenly appeared in the city, last year a silent tram line was laid here - it is becoming more and more interesting to live and buy real estate in Marseille."
As part of the reconstruction project, the main city street, Republic Street, is completely changing its appearance. Here, in the buildings of the XIX century with exquisite facades, luxury apartments are offered from studios to penthouses with a unique layout, with a separate kitchen (an element that is not provided in new complexes in France) and a bathroom. There are three finishing options available, prices range from 260,000 euros for studios to 384,000 euros for three-bedroom apartments with sea views. Downstairs, on the ground floor, there are restaurants, bars andcafe.
The most noisy is the ancient quarter of Le Pannier, whose narrow streets attract foreign tourists as the main attraction of Marseille and Parisians as an opportunity to relax in the bohemian atmosphere of the port city. In the secondary housing market, studios in the city center will cost at least 120,000 euros, but when choosing a house for themselves, buyers may prefer luxury villas in the suburbs at a price of 450,000 euros.

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