A French ski property sales business reports that the trend is up for the number of sales in French ski resorts, as well as the number of properties being sold and the price being paid.
“We’ve had a couple of great years,” said Francois Marchand, Property Director at Erna Low, which has issued a full report on the current state of the market.
“Sales volumes are up, revenues are up, and so too is the average price of each property sold,” added Francois.
Currently New-build apartments, rather than chalets, are leading the revival, which is being helped by low interest rate Euro mortgage rates. It’s now possible to get a 15-year fixed rate repayment mortgage with the interest set at just 1.40%.
However, it’s reported to be easier to get a small mortgage than a large one at the moment. “Banks would rather approve ten €100,000 mortgages than a single €1 million one,” commented Stéphane Brière of French mortgage brokers CAFPI International.
In addition leaseback schemes allow buyers to reclaim the VAT on their property purchase – provided they put their apartment into a rental pool. In the past, most leasebacks gave owners just three or four weeks’ annual use of their property. But now, the schemes are loosening up. Some allow owners 26 weeks of use, alongside the full 20% VAT refund.
The sales growth has gone hand-in-hand with a surge in new infrastructure projects. Among the most eye-catching are the €36 million mini-resort, Mille8, in Les Arcs, and Courchevel’s €63 million waterpark and spa, Aquamotion, which both opened last winter.
Property buyers are also reported to be interested in year round business rather than just the ski season with road cycling events, mountain biking and trail running all making the summer season fashionable again in the mountains, meaning better rental returns year round.
A new wave of developments is giving skiers the chance to buy back-door entry to the world’s most famous ski areas, but pay less by buying in one of the up-and-coming resorts. Buying into Les Menuires (pictured top), for example, will give you the whole of the Three Valleys. Meanwhile, an apartment in Tignes-les-Brevières will unlock the slopes of Val d’Isère.