If you have an off plan property to sell in French Alps, we have great news for you – the top international real estate firm Knight Frank came out with a report recently which stated quite explicitly that there is right now a huge demand for off plan projects in the French Alps.
French Alps properties are very popular around Europe and among rich non-EU investors as well. Property sales in the French Alps have no doubt been aided by the strengthening of the British Pound and the American Dollar, compared to the weakness of the Euro, which has led to an increase in interest in the French Alps – which is considered to be one of the most beautiful regions in the world – from these countries.
One reason demand is so high for ski chalets in the French Alps is that there has been a realisation among overseas investors that these properties offer excellent return over the long term. The rental income that one can earn from these properties is a huge attraction as well.
Demand has been particularly high at the resorts that are at a short drive away from the Geneva Airport such as Morzine, Les Gets, Megeve and Chamonix. The most in demand ski chalets here are those in the price range of €1.5million to €2 million.
Roddy Aris, who is a top executive at Knight Frank, was emphatic about the attraction of ski resorts such as Carré Blanc in the French Alps: “Buyers today are comfortable with the concept of buying off-plan through CGI imagery, floor plans, site plans and stage payments.
“The attraction of Carré Blanc is not only the development itself with its ROI of +3% net, but the statement of intent from the local Town Hall to build a vast aquatic centre between Courchevel Village (1650) and Courchevel Moriond (1550) as well as the huge investment in upgrading the lift system in the valley.”
Enquiries from foreign investors have been very high, with over 60% of the interest in properties in French Alps coming from Western Europe, 12% from Asia and the Middle East, 5% from the US and 5% from Russia and other Eastern European nations.
Francois Marchand, general manager at Erna Low Property attributes the increase in the number of property enquiries in the French Alps to the ever lower interest rates offered by the French Banks as well as a weakening Euro compared to the Pound Sterling. He explains, “Enquiries from savvy investors are up 20% year on year since the end of the summer. Site visits have been taking place since the beginning of September.”
As another executive from Erna Low Property adds, “Over the past two years, we have experienced a great increase in activity levels, the winter season has started in the middle of summer for us, which is something we last saw in 2008. It appears that the French Alps is enjoying a renaissance as a favourite destination for first time investors in France, and we are very well prepared for this activity.”
The dramatic currency exchange movements have aided the increased interest from British and American buyers, while the Swiss interest is largely because of the fact that properties in the French Alps are cheaper than comparable properties in Switzerland by 13% on an average.
Julian Walker of Skiingproperty.com explains why so many rich, high net worth European investors are interested in properties at the French Alps: “The arrival of QE in the Eurozone combined with the Swiss Central Bank's decision to unfix its currency against the euro could change the dynamics of the European ski property market in Europe this year.
“France, a truly international market, immediately becomes more attractive to foreign buyers and it's not only property that has become more expensive in Switzerland, but so have all the associated costs of ownership, including mortgage repayments. There could also be repercussions for the rentals market.”
The Russian interest has waned a bit because of the devaluation of the Rouble, because of which apartments in the French Alps have become costlier for them by as much as 60% in just a year. For Americans, it is a different story – their buying power is a lot more than it was just a year back with the US dollar rising by as much as 20% against the Euro over the past 12 months. UK & Irish Estate Agents Selling French Alps Property.