Are housing prices too high?

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Of the shops At ground floor and to 1^er flooralso occupied by offices and one medical office. Some 55 accommodations of 2^e at 4^e floor.

A historic building

These are the broad outlines of the renovation project of large scale of theiconic Ratti buildingin city ​​center from Cherbourg (Manche), which had been presented at the end of the month of June 2024.

A little over a year after being bought by the company Nexity Héritage. “The building is related to history of the city and has always remained in the heart of the inhabitants “, assured Benoît Arrivé, the mayor of the port city.

An investment of 8 million euros

But how much will it cost the investorsinterested in this building designed by the architect René Levavasseurin Art Deco style and inaugurated in 1929while marketing had been launched at the end of June?

On the Nexity website, which is going to invest 8 million eurosa 42 m2 apartment² at 4^e floor rises to 239,300 euros The most expensive is a four-room apartment on the 4th floor.^e floor, at a cost of 524,900 euros.

More than average, but…

Certainly Nexity’s investment is “significant”, as the president by Nexity Heritage Sharon Elbaz, but based on calculations by Meilleurs agents these prices are above average in Cherbourg-en-Cotentin.

Thus, the average price per m² in Cherbourg was 2,318 euros on the 1st^er September 2024 for an apartment. The one of 42 m² proposed at 4^e Ratti floor by Nexity comes to 5,697 euros per m².

… tax advantages

Figures which should however be qualified a little: the average of Meilleurs agents is expressed in net seller excluding the agency feesand those of notaries. Nexity also assures that the investor will have purchased an apartment from Ratti at market priceor even a little cheaper.

How? Thanks to the deduction of tax benefits . “We have chosen to sell via THE Denormandie device (“Tax assistance granted within the framework of a rental investment to encourage the renovation of old housing “, explains the Ministry of Economy) optimized for land flow. This specific structure allows the investor to benefit from a certain number of tax advantages which are necessary for finance rehabilitation costsvery high,” highlights Nexity.

Market rent

Because the buyer of Ratti emphasizes once again that the costs associated with the regeneration of the building are “much higher than those of a classic operation.”

They are over 3,000 euros per m2 of living space, more than double that of a new operation.

Once the apartment is purchased, what about the future rent? “The rent that will be charged by the investor on unfurnished rental will be the market rent which will allow single people of young couples or some families to live in the hypercenter of Cherbourg,” promises Nexity. Let us recall that in Cherbourg, the average monthly rent per m² was 11.4 euros on 1^er September for an apartment.

In June, the stakeholders of this immense project, notably the elected of the City, had also insisted on the fact that the future ownerswill have to commit to do not rentin furnished tourist accommodation.

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