Focus on the Poitiers Property Market: Where to Invest?
Starting in June 2017, the new TGV line connecting Paris to the south-west will put this picturesque town of 100,000 inhabitants a mere 1h15m from the capital. What will this mean for the Poitiers property market?
A city in central-western France on the Clain river (one tributary away from the Loire), and capital of the Vienne department, an announcement this year by RATP turned heads towards Poitiers. The new Paris-Bordeaux TGV line’s start date of 2 June 2017 is confirmed – and Poitiers lies in the middle of the route.
A fairly stagnant property market for the last years, Poitiers has been supported mainly by students (some 24,000) and buyers, rather than salaried renters. Right now there is quite a large price range. The lower end sees the most basic and dilapidated residences going for around €1000/m2; refurbished, modern properties sell on the high range at €2200/m2.
A 70m2 2-bedroom in an old build apartment block (without a lift) recently sold for €100,000, a price/m2 of €1,430. Nicer properties set on multiple levels, like a semi-detached home with a small garden, can go for between €120,000 and €150,000. Poitiers is firmly on the lower rung of property prices for cities nationwide – an opportunity for young, first-time investors.
Where to look for your Poitiers property investment?
Some property experts are advising investors to look to the west of the city, as it benefits the most from new transport links and other developments. A new, raised highway has recently been completed that affords better connections to the city center, itself undergoing a rapid transformation through investment and a growing population. The university and main hospital are both found there.
For buy-to-let investors, new-builds are more sought after. But, apartments in existing buildings have higher returns, especially in desirable areas such as the town center, Gibauderie and Pont-Neuf. A studio in an existing building will go for between €40,000 and €50,000 and fetch a monthly rent of between €280 and €320 – a 6% to 7% return. New-build investments will pay lower returns.
The French television network M6 recently announced they will be filming an episode of Apartment Hunter in Poitiers in the coming months. Some are calling the Nouvelle-Aquitaine region, where it is located, France’s latest real estate ‘El Dorado’. Heads are clearly turning towards the city.
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