Medieval town of Sarlat: how a ruined building was transformed into social housing

In 2019, the City pre-empted a dilapidated building before selling it to the landlord Domofrance, which developed five social housing units and a shop. The operation barely broke even financially.

The tenants have already entered the apartments, with the exception of one used as a show apartment for the visit (1) which accompanied the inauguration of the Les Toits d'antan residence, at no. 1 rue des Armes in Sarlat (Dordogne), Wednesday September 3.

Located a stone's throw from the Traverse at the bottom of Rue Jean-Jacques-Rousseau, the five social housing units (two one-bedroom apartments and three two-bedroom apartments) are now occupied. Rents range from €247 to €401, depending on the type and size. This residence is a welcome addition to the heart of the medieval city.

The real estate development project spanned several years. In 2019, the city exercised its right of first refusal to purchase the building, on the ground floor of which the El Cocodrilo snack bar had occupied space for years.

In February 2019, the building was put up for public auction in Bergerac for €80,000. "It was in ruins, and we acquired it," recalls Mayor Jean-Jacques de Peretti. With the idea of ​​finding an operator to develop social housing there, Périgord Habitat, the Dordogne public housing authority, declined for budgetary reasons.

Already in contact with the social landlord Domofrance for other projects on the France Tabac brownfield site, the City presented the building to them and convinced the manager of 60,000 housing units in the region to invest. "We sold it at the pre-empted price," the chief magistrate continued.

And yet, it wasn't a given, according to the financial equation summarized by the general manager of the region's leading landlord, Francis Stéphan. "We deliver 400 homes for purchase per year and 2,000 rental units, 10% of which are renovations." The reason for this low rate? "It's too expensive." An additional cost estimated at 30% compared to a new program due to constraints related to urban planning and protected heritage. Especially in a protected area overseen by the architect of the Bâtiments de France, like that of Sarlat.

Domofrance's investment amounted to €1.2 million (with €250,000 in subsidies). "A barely break-even operation," continues Francis Stephan. Domofrance will nevertheless be able to collect rental income from the commercial premises, which are awaiting an occupant (excluding food stores).

"Rental income is struggling to finance our projects," assures Philippe Rondot, president of Domofrance, adding that the lessor has to sell a very small portion of its property portfolio each year.

(1) Mayor Jean-Jacques de Peretti, Domofrance President Philippe Rondot, Périgord-Charente territorial director at the Banque des Territoires Zili Fu, representatives of the City, Domofrance teams and partner companies who participated in the project were present.