Focus on Property in Marseille: Price Growth, Arrondissements and Tax Climate
Property in Marseille, France’s second-largest city and a major trade port, should be on the radar of anyone considering investing in the French market. After a few years of price falls since 2012, the market there is now in full swing.
After a bad 2014 and a slow recovery in 2015, 2016 saw Marseille build on its resurgence as property prices grew steadily throughout the year and continue to do so. Arrondissement performance, buyer-to-seller ratio and tax climate are also important things to consider.
Growth of between 2% and 3%
In the last 12 months, Meilleursagents have a price growth figure of 2.1% while SeLoger put the number at 3.1%. Prices are still some 10% below their peak prior to the financial and Eurozone crises of 200-2012, but the current growth the market is seeing could see records broken within five years if trends continue.
Meilleursagents’s average property prices now stand at €3,133 per m2 for houses and €2,414 per m2 for apartments, while SeLoger has a slightly higher figure of €2,749 for apartments.
Buying a property in Marseille
Estimates are that there are currently 2500 properties on the market in Marseille. And, with less than one prospective buyer (0.8) per property, those interested can expect, on average, 6% off the asking price. The average number of days taken to conclude a transaction is 42.
Where to look?
In Paris the question is how much, not if, each arrondissement is growing (with the exception, occasionally, of some of its central arrondissements). Marseille’s picture is a lot more fragmented, with some arrondissements ballooning while others are seeing dramatic falls over the last 12 months.
When it comes to existing apartments (the bulk of the market) some fast movers include the 2nd (+10.8%), 7th (+6.3%) and 10th (+5.5%). Avoid the 14th and 15th arrondissements, where falls of 7.9% and 8.6% (respectively) are being seen.
Having said that, if a bargain property to live in or rent out is your objective then the 14th might not be a bad option, it being the cheapest arrondissement for property in Marseille with a price per meter square of only €1,380 (according to SeLoger) which is falling fast.
One of the reasons that Marseille might have a low buyers-to-sellers ratio is its high property taxes. The taxe fonciere is one of the highest in France, having grown 50% in the last few years. A couple renting a 2-bedroom apartment will pay around 800 euros a year, as high as some of the most sought-after properties in Paris. FNAIM’s president called the tax “shockingly high and unfair.”
Add on other costs like the taxe d’habitation and co-ownership fees for the building, and it is unsurprising that some buyers might be looking elsewhere. However, the city hall did not choose to vote in a higher taxe d’habitation, as Paris did earlier this year.
image © Wikicommons