A new report on one Alpine property sales company’s trading over the past year has produced some interesting results.
Erna Low Property’s 2019-20 Report reveals that despite Brexit uncertainties there is still plenty of demand for mountain homes in the French Alps.
In fact the company says it has just posted its best-ever results for the last financial year, recording its highest total value of sales since it launched in 2003.
There are trends within these figures however. To begin with the average property sold by Erna Low Property has doubled in price – from €400,000 to €800,000 over the past five years. This reflects the fact that Erna Low’s client base has changed since Brexit, the company reports, although the trend was already underway before the vote.
Erna Low Property says they have seen a sharp reduction in the number of less wealthy investors.
The company also report that with the rise of flexible ownership schemes, buyers are enjoying more time in their properties – and quick access from the airport is a growing priority. As a result, Erna Low Property is seeing a rise in interest in resorts such as Combloux (near Megève), Les Gets and Les Carroz d’Araches. All are less than 70 minutes from Geneva airport.
“One of the key reasons for the increased demand seems to be that buyers are looking to diversify their portfolios and invest outside the UK,” said Francois Marchand, Director of Erna Low Property, who added,
“The move is made all the more attractive by ultra-low French mortgage rates, and flexible ownership schemes. Buyers put their properties into a rental pool, and claim back the VAT on their purchase. But they can also enjoy up to six months of private use.”
