Buying Property in the Alps

Buying & Selling Property in France

From a barn restoration in Bordeaux, to a mazot conversion in the mountains there's many reasons why people are interested in purchasing property in France. Make sure that before you attempt the process of purchasing your property in France you are fully armed with the knowledge of how to locate, purchase and even live in it!

Buying in the French Alps

Spurred on by a love of skiing or a simple investment purchase, the past few years has seen a surge in the number of investors snapping up chalets and apartments across the French and Swiss Alps. The demand for Alpine snowy boltholes is rising year on year and is currently being led by young British investors who have a passion for the outdoors who are looking to invest some of their hard earned cash. The range of alpine property available means that there is generally still something out there to suit most skiers’ pockets and taste.

last updated 22-Feb-2008

Which ski resort should I choose?

With so much choice the real question is, ‘where should you be buying?’

Initially you should think about how you would like to use your property – as a second home solely for your own use; or as a property with rental income for the weeks that you are not going to be there. If it’s the latter, then choosing a resort with a variety of facilities in the summer and winter is key factor in deciding your alpine location. Most ski resorts have a ski season that runs from early December until mid April. On average, this can equate to 20 weeks of rental income for those operating in the buy-to-let or leaseback (link) market. In selecting an all year round resort, you’ll also be able to enjoy your alpine property more throughout the year. Alpe d'Huez (Haute Savoie) and Morzine (Portes du Soleil) are two such examples of alpine villages that have benefited from the increase in British property hunters because of their permanent all year round population. Whilst shops and hotels may close temporarily during the ‘inter-season’, the tourist industry tends to continue all year round with visitors flocking to the resort to take part in activities including: mountain biking, hiking, skiing/snowboarding and snow-shoeing. Smaller resorts such as Val d’Isere, Meribel, Val Thorens and Courchevel for example, have a thriving programme of summer activities, but these generally only operate for 6 – 8 weeks in the summer, (from mid July until mid September) thereafter it’s tumbleweed city, with the butcher, baker and candlestick maker closing down until the winter returns, or having sporadic and limited trading hours. It all depends on what you are looking for from your property.

Switzerland is following a similar pattern to that of France although thanks to a combination of complicated buying rules and regulations, (and an ambivalent attitude to foreign buyers’), property prices have similarly risen but in not as dramatic a fashion.

In the Valais region (home to Verbier and the ‘four valleys’), prices have risen by an approximate 50 per cent above the national average. In December 2006, the Valais government decided to take an unprecedented step in temporarily banning foreigners from buying a second holiday
home in the ski resort of Verbier. In announcing this decision, the government had said that ‘emergency measures’ were required as there was a backlog of almost 1,000 outstanding applications from non-residents who had purchased property in the Valais area. This is said to be a temporary situation which is due for review at the end of 2007. It is still possible to get around this decision though by buying property on a leaseback scheme (link)

If you are looking at buying property in the Alps, here are a few of the smaller French resorts with significant development work that may be of interest to you:

Samoens - smaller, traditional French resort that is linked to the Grand Massif ski area

Vaujany - smaller French resort that is growing, linked to the Grandes Rousses ski area

Arc 1950 - a newly built resort in the Paradiski that has been built predominantly for people to buy ski property there.

Champany en Vanoise – a pretty village on the edge of the Paradiski skiing area, developer MGM are currently building 5 savoyard style chalets containing up to 80 apartments.

Les Collons - A high altitude Swiss resort that has access to the Verbier/ 4 valley’s ski area, as well as a wider range of off-slope activities.

Flaine Montsoleil - a new development near Flaine, France by Erna Low and Intrawest, with property to buy at 1700m.

Vallorcine – small, traditional village that is linked to the Chamonix valley skiing area. It’s the last undeveloped site in the Chamonix valley. Les Aiguilles Rouges is a development concept of Immoconcepts and Erna Low. The first phase is due for completion in December 2008.

last updated 22-Feb-2008

French Alpine Property Prices

On 31 May 2007 the local paper for the Savoie area: ‘Le Dauphiné Libéré’ reported that the Savoie (73) and Haute Savoie (74) areas of France are now amongst the top 5 most expensive across the French continent. Demand for older traditional properties that come fully equipped with picture postcard alpine settings, has resulted in the Savoie area of France ('73' region which is home to skiing resorts such as The Three Valleys, Paradiski and The Espace Killy) seeing price increases of 76 per cent since 2002, with a 13.5 per increase during 2006 alone!

Alpine resort and villages that are fortunate to have good transport links (low-cost flights, motorways, TGV and rail) are the ones who have seen significant surges in property prices over the past 5 years with property prices almost doubling. Take for example two popular skiing villages, Chamonix and Morzine. Both are only about an hour away from Generva International Airport and have excellent motorway and rail links. In 2002, the average price of a two or three bedroom apartment was approximately €70,000 (£50,000 approx) and €66,000 (£45,000 approx) respectively. Today you can expect to pay in the region of €270,000 (£182,000 approx) for a similar sized property, and anything upwards of €500,000 (£350,000 approx) for a descent 3 bedroom chalet. It's fair to say that had you taken the plunge in Alpine property during the late 1990s and early 2000s are sitting you'd be sitting on a nice little asset!

As of July 2007, the 'square metre' value of a property in the Savoie and Haute Savoie skiing areas are priced as follows:

Three valleys (Meribel, Courchevel, Val Thorens) per m2 = €5,850 (£3,960 approx)

Haute Tarantaise (Val d’Isere, Tignes, Les Arcs, La Plagne) = €4,240 (£2,870 approx)

Haute Savoie (Chamonix) = €5,000 / (£3,385 approx)

However, all is not lost. There are still plenty of affordable options for those looking to buy their dream property in The Alps. If you are looking for something a little less astronomical then the outlying villages that surround the big popular resorts can offer you considerable value for money. As Verbier and Chamonix both represent the top end of the skiing market, the lesser known villages of Nendaz in Switzerland, and Les Houches, Argentiere and Vallorince that are part of ‘the Chamonix Valley’ can offer great value for money. A new development project in Les Houches that consists of one, two and three bedroom apartments advertised prices starting from €206,000 (£140,000 approx). Property is still by no means cheap! What is currently certain thought, is that buyers in these areas can obtain great deals and tend to get more space for their money. With good bus links in high season you’re never too far away from the action. Moreover, Samoens which is an easy drive from Geneva airport and only an hour down the road from Chamonix is slightly cheaper with two bedroom apartments selling for approximately €170,000. The practice of eschewing big, expensive resorts in favour of smaller, less established ones that have quick and reliable links is likely to become more and more commonplace amongst property investors in the coming months and years.

last updated 9-Jun-2008