A little drop of Cognac
A little drop of Cognac
Like most of France, property prices throughout Poitou Charente
have increased dramatically in recent years. However there is
one "hot spot" that has seen a real economic resurgence that
looks set to stimulate demand for property for some time to come.
While prices in other parts of France remain susceptible to the
vagaries of interest rates, the health of the Euro and the
ability of cheap flight airlines to remain in profit the
Charente market looks to have an interesting security blanket.
The area around Cognac has always relied heavily on the
Worldwide sales of the famous digestif to stimulate the local
economy and indeed property values.
Out of a population of around 900,000 it is estimated that
48,000 people owe their living directly to the drinks industry.
Up until the late 1990's everything was rosy in the cobbled
streets of Cognac with strong worldwide sales and a seemingly
untouchable grip on the luxury drinks market.
Then the collapse of the Asian economy struck home and in
marketing terms the industry had to re-invent itself to fight
off competitor drinks.
Happily this must be one of the most successful case studies of
all time. These days the Cognac industry is thriving again and
the region is buzzing with high employment levels, rising
property prices and a feelgood factor that sits comfortably
alongside the traditional cheery nature of the Charentaise
people.
This repositioning has seen startling results in the US - Cognac
has become a young, trendy and aspirational drink for "young
black America" (who represent 60-80% of US sales), so much so
that sales there have tripled over the past 10 years.
But enough of statistics, here's the truly amazing bit. The "eau
de vie" is lauded in literally hundreds of rap songs throughout
the nightclubs of New York, LA, Miami and Chicago.
This exposure to the US market has meant that the buying pattern
of property purchasers has expanded too. Walk into the local
immobilliers and you will find American and Canadian accents
mixed in with the usual mixture of French , English, Irish,
Scottish, Welsh, Dutch and other Europeans.
The local papers have also been full of stories about the
tourist offices running courses in Chinese language and customs.
France is readying itself for a huge influx of Chinese tourists
now that the barriers of entry have been dropped - they are
estimating that the current number of 300,000 could top the
million mark within five years. Within 10 years the Chinese will
be the highest ranked visitors to France, ahead even of the
British.
Of course many of these visitors will be heading straight for
the Charente to visit the home of their beloved Cognac.
So what will their yen, dollar, pound or euro buy them?
At the base level a client of ours has just bought two excellent
plots of land totalling around 4,500 m2 for 50,000