The « little Paris » is still very successful on the new real estate market, and if the health crisis has got the better of the number of sales, the prices of new apartments in Bordeaux have not weakened, according to the latest real estate figures in Gironde.
From the townhouse to thenew apartment in Bordeaux the prices were indeed not spared, as noted by the president of the Chamber of Notaries of Gironde, Maître Mathieu Massie: “despite a sales volume down by nearly 9% on average in the territory, prices are increasing significantly depending on the type of property with prices per m² up by 8.8% for old houses and 4, 6% for new apartments and elders in Bordeaux”.
However, if investing in a property new real estate in Bordeaux remains relatively expensive, many purchase aids are available to become the owner of a new housing in Bordeaux. What are these devices? Is it possible to borrow at an attractive rate for your real estate purchase in 2021?
Summary
What are the prices exercised in new real estate in Bordeaux in 2021?
The attractiveness of Bordeaux will have got the better of real estate prices in 2020. Despite the Covid-19 crisis, Bordeaux still remains among the cities where the French prefer to invest, even when prices are more greedy. Ranked second most expensive city in France, Maître Massie remains optimistic about the state of health of the real estate market in Bordeaux: prices in new and old buildings remain similar, with notwithstanding, an “acceleration on old buildings” .
According to the latest real estate figures in Gironde, the median price per m² of a new apartment in Bordeaux would be €4,500 and €4,310 in the rest of the region in 2021. It is also interesting to note that despite these prices, the annual sales of new apartments of 2 and 3 rooms remain higher than in the old (41% of sales in the new against 34% in the old for a T3, and 39% of sales for the T2 against 31% in the old).
Always more attracted by new buildings, first-time buyers have not hesitated to turn to new programs in Bordeaux for their first investment. To compensate for this price increase, Bordeaux residents still have the possibility of financing their project thanks to certain aids for the purchase of real estate.
Aid for the purchase of new real estate in Bordeaux
Any buyer has the opportunity to receive one or more financial supports for his purchase project in new real estate in Bordeaux. This aid most often comes in the form of loans subsidized by the State and thus promote home ownership assistance for first-time buyers with small budgets. Thanks to these schemes, many households have been able to make the purchase of a new apartment in Bordeaux. What are the aid schemes for joining Bordeaux Métropole in 2021?
Buy a new apartment in Bordeaux with the 1st housing passport
Open to families and single people, this passport promotes home ownership assistance as part of a first real estate purchase in Bordeaux for a main residence. Its amount can vary between 3,000 and 6,000 € depending on the number of people who will occupy the accommodation. To be able to buy a new apartment in Bordeaux thanks to Passport 1er accommodation, several conditions apply:
- Be a first-time buyer.
- The accommodation must be located in Bordeaux Métropole and must be occupied as a main residence.
- Only new apartments labeled by the town hall of Bordeaux are concerned.
- The income of the purchaser must not exceed a certain ceiling of resources, identical to those required for the granting of a PTZ.
- The application file must be submitted before the signing of the authentic deed with the development service of the housing offer of Bordeaux Métropole.
| Number of persons | Amount of aid in zone B1 |
|---|---|
| 1 | €30,000 |
| 2 | €42,000 |
| 3 | €51,000 |
| 4 | €60,000 |
| 5 | €69,000 |
Finance your new apartment with the Bordeaux Métropole 0% Loan
Another system put in place by Bordeaux Métropole to meet the need for housing: the Loan at 0%. This loan allows households with modest incomes to be able to access property by buying a new apartment in Bordeaux and in its immediate periphery as part of a direct off-plan sale or a rental-accession (PSLA) with a lessor or developer.
Only granted by Bordeaux Métropole’s partner banks, the loan can be combined with other purchase aid schemes such as the PTZ where the Passport 1er lodging. With a duration of 14 years, it is granted subject to eligibility.
To finance their new apartment in Bordeaux, a single person can benefit from a Bordeaux Métropole 0% loan of €10,000, for households of 2 to 3 people, the amount is €15,000. For households of 4 or more people, the loan can go up to €20,000.
This system also exists for all major French cities with the zero rate loan (PTZ). Like the 0% loan, it is only available to first-time buyers. The PTZ can finance up to 40% of the purchase amount of a new apartment in Bordeaux, if the income of the purchaser or purchasers does not exceed the ceiling of resources.
Buying a new apartment in Bordeaux with reduced VAT
It is one of the major accession aid schemes for small budgets in France. By buying a new apartment in Bordeaux in the ANRU zone, a buyer can benefit from reduced VAT at 5.5%, instead of 20%. These areas (municipalities or districts) known as “ANRU” (National Agency for Urban Renovation) are sectors subject to urban renewal projects.
One of the challenges of these projects involves the construction of new real estate programs. Determined according to their need for rehabilitation, these areas display new apartments for sale at more attractive prices. Among these different sectors eligible for reduced VAT in Bordeaux Métropole, we find in particular the Champ de Course districts between Le Bouscat and Eysines, Bordeaux-Lac, Bacalan, Grand Parc, Palmer – Saraillière in Floirac, Beaudésert in Mérignac or Carle Vernet in Begles.
Buy a new apartment in Bordeaux at a controlled price
Some new apartments in Bordeaux show prices lower than those on the new market. Set up by the metropolis, accession at a controlled price allows first-time buyers to become owners more easily. The reduction applied to a new apartment varies between 20 and 30% compared to the classic sale price.
Coming from a partnership between municipalities and real estate developers, this aid can be combined with other measures.
New apartments in Bordeaux accessible at controlled prices have a price capped at €2,650 per m² including tax excluding parking for a reduced VAT of 5.5% and €3,000 including tax excluding parking for a VAT of 20%.
Investing under the Pinel law in a new apartment in Bordeaux
In addition to the purchase of a main residence, any French taxpayer has the opportunity to make a rental investment under the Pinel law in a new apartment in Bordeaux. Extended until 2024, it makes it possible to be able to tax part of its taxes and to be able to build up a real estate heritage within the framework of a rental.
City popular with students and bringing together a majority of tenants, new apartments in Bordeaux of the 2-room type with exterior are very sought after. Eligible for the Pinel law, an owner must rent the property for a minimum period of 6 years at a maximum rent of €10.51 per m² (zone B1 2021), to a tenant whose resources do not exceed a certain ceiling .
How do real estate loan rates behave in Bordeaux?
If the rise in real estate prices is present, credit rates are no less interesting at the start of 2021. Indeed, we know that in March 2021, according to the barometer of thebrokerage agency in new real estate Bordeaux IMMO9, rates remain stable with an average borrowing rate of 0.91% for a 15-year loan, 1.06% for 20 years and 1.33% for 25 years. In March 2020, these rates were 0.97%, 1.16% and 1.41% respectively.
Thanks to their very good loan record, Laura and Jean will be able to buy a new apartment in Bordeaux 3-room apartment with balcony at €277,500 in the heart of the Saint-Jean Belcier district and apply for a mortgage at a rate of 1.06% over a period of 20 years.
In which district to buy a new apartment in Bordeaux?
Many new programs have been delivered in recent years in all districts of the city of Bordeaux. Rich in the diversity of its districts, each has a particular identity while housing all the necessary urban amenities and shops.
Among the districts where Bordeaux residents invest the most, the historic heart of the city remains one of the most popular sectors, in particular the Saint-Pierre, Chartrons and Quinconces districts. If these districts present in majority buildings of Haussmannian inspiration, it is also possible to buy there new apartments from T2 with balcony to 4 rooms with terrace and garden.
Olga and Jean want to buy an apartment in a new real estate program in Bordeaux. To carry out this life project, the couple spotted a charming 3-room apartment in the heart of the Bordoriva residence in the Deschamps – Belvédère district on the right bank of the Garonne, north of Gare Saint-Jean. This property displayed at a price of €368,000 can be financed by several aids: the 0% Loan, the Passport 1 er housing, the PTZ, etc.
They chose accommodation at 3th floor with balcony facing west. With delivery scheduled for 1 er quarter of 2022, the couple has time to see their monthly payments coming, especially if they opt for a zero-rate loan, the deferred period of which can vary from 5 to 15 years. The apartment is made up of a duplex with a sleeping area upstairs. With the savings made thanks to the reduced notary fees and the accumulation of the various purchase aids, Olga and Jean will be able to personalize their apartment according to their tastes thanks to the buyer’s modification works (TMA).
The outskirts win the hearts of Bordeaux residents
At the gates of Bordeaux, suburbanization has greatly increased in recent years. Attracted by the calm and outdoor spaces, buyers are eyeing the outskirts and are increasingly making their purchases a reality in the small or larger towns of Nouvelle-Aquitaine. Off-plan houses and new apartments are advertised there at lower selling prices than in downtown areas and offer the possibility of gaining more space. Attractive and well served, towns such as Mérignac, Villenave-d’Ornon or Saint-Médard en Jalles offer new apartments near Bordeaux from studios to 5 rooms in secure residences close to shops and amenities.
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