Alpine Property Prices Continue to Rise
Report by Ascendant Property, first published 06/03/2008

Recent property price reports show positive news in the world of alpine property for both buyers and vendors. Figures released by Notaires de France confirm that property prices in the northern French Alps are continuing to increase at an astonishing rate and some of the resorts in the Savoie region of the French Alps have now overtaken both Paris and the Cote d’Azur in the French property price league tables.

Property prices – an overview of 2007

In 2007 resale apartment prices in mountain destinations increased by more than 13% in Haute-Savoie and 9% in Savoie. Chalet prices increased by 7% in Haute-Savoie and a huge 25% in Savoie, whilst land prices increased by 22% in Haute-Savoie and almost 9% in Savoie. According to the estate agency regulatory body FNAIM, the average price per square metre in Haute-Savoie and Savoie combined has now almost doubled since 2002 and currently sits at 4,844 euros.

The pace of the 2007 property market was slower than in previous years; late snowfall in the 2006/2007 season, plus the US sub-prime credit crisis (and its subsequent impact on the UK housing market) have impacted on the volume of sales in tourist destinations with a high proportion of British buyers. However, despite a decline in the overall volume of sales there is positive news for both property owners and buyers. Annual property price growth continues to be strong and properties which are priced at the correct market value continue to sell well. In the past there has been a tendency to over-value in the French Alps. This has now ceased, however, and today’s property market reflects true values.

Given the recent changes in the Sterling-Euro exchange rate there is increased negotiation on property prices – the overall outcome being that the British vendor is able to capitalise on the weaker pound when returning their funds to the UK, while the British buyer is able to secure a property without paying over the odds. Buyers are also finding a greater choice of property for sale, although resort centres are continuing to record a rapid sales turnover and buyers still need to move quickly to secure their dream property.

Many buyers are investing in a number of new-build apartment programmes launched across the region, notably in Flaine, Samoëns, Les Carroz and Saint Gervais-les- Bains. As a result new build prices in key resorts have increased rapidly during the past 12 months — and globally across the mountains by almost 12%.

Property price hot spots

Courchevel and Méribel in Savoie now top the list of prices per m² across France, with Val d’Isère in fourth place behind Saint Tropez. The three mountain resorts lie within the Three Valleys and Espace Killy ski domains in Savoie, each domain attaining a respectable 6% and 8% growth respectively in resale apartment prices. The Top Ten also has three resorts from the Haute-Savoie area, Megève (6th), Les Gets (7th) and La Clusaz (10th) claiming the highest prices per m² at 6,227, 6,212 and 5,606 Euros respectively.

However to really get to grips with where the movers and shakers are in today’s property market we should narrow down the search and look at which ski resorts are showing the strongest capital growth rather than the highest price per square metre.

A recent report in the Savoyard newspaper Le Dauphiné Libéré confirms that the ski resorts of Haute-Savoie appear to be most profitable for today’s property buyer. The article reasons that the resorts of Haute-Savoie seem to be better adapted to the needs of buyers; property for sale in the region is more also spacious and the resorts more attractive for year-round pursuits. With fewer than 50% of tourists coming to the French Alps to ski it becomes increasingly clear why these destinations are starting to claim an advantage over their more expensive purpose-built neighbours. As Le Dauphiné Libéré confirms, the future of any mountain destination really hinges on its ability to anticipate and adapt to client needs. This successful approach is reflected in the impressive price increases experienced by many resorts in the Haute-Savoie area. The price per m² in Flaine/les Carroz has leapt 23% in the past year, La Clusaz by 22% and across the Evasion Mont Blanc ski domain by 22%.

Movers and shakers

Some of the resorts which are performing well have long been touted as property hotspots by the team here at Ascendant. Saint Gervais-les-Bains, Combloux and Les Contamines all performed extremely well in 2007 and it is our prediction that they will continue to grow in 2008. These destinations all offer the right location at affordable prices – buyers who used to seek property in the Chamonix Valley and Megève and who have been priced out of these markets are now looking at nearby, connected resorts for their second home. The advantage of these 3 destinations is three-fold: they are ideally located for easy access to Chamonix, Megève, the rest of the region and Geneva Airport, they all provide easy cable car access to the vast Evasion Mont Blanc ski domain and they are all fully geared towards year-round holiday activities. Add to this that both Saint Gervais and Les Contamines have significant resort and infrastructure developments lined up for the near future and they are unlikely to remain among the region’s best-kept secrets for much longer.

In Les Carroz and Flaine prices have also performed well – resale apartment prices are up by 17.2% and new-build apartment prices are up by a massive 32.2%. New-build prices are mainly being driven by large scale development in Flaine , which is drawing heavy investment in this snow-sure, high-altitude resort. Certainly Flaine’s assertive 1960s architecture does not bring to mind the quaint alpine chalets. However new apartment and chalet constructions have been sensitively designed to marry contemporary and stylish with old Savoyard style and the resort’s solid snow record continues to drive demand. Flaine sits in a micro-climate generated by nearby Mont Blanc, ensuring that even in a bad season there is still plenty of skiing to be enjoyed. Les Carroz continues to be a popular resort for buyers – ease of access (45 minutes) from Geneva Airport is a major boon, while straightforward access to the Grand Massif ski domain and a busy summer season all appeal to buyers.

La Clusaz continues its meteoric ascent in resale apartments, with year on year price increases of 22%. Whilst this attractive resort is less well known to British skiers, it is well-loved among the French skiing crowd and an extreme lack of property for sale (and land on which to build) has helped to push up prices. The resort is a popular year-round destination, with one of the prettiest village centres in the Alps and easy access to Lake Annecy for the summer season. Locals from Annecy head up to La Clusaz for weekend breaks and their buying power also influences prices in the local area.

Interestingly, it is in many of the outlying villages where the largest price increases are being experienced – predominantly because buyers are increasingly prepared to move out of the main resorts to achieve the size and type of property they desire. Les Houches in the Chamonix Valley shows steady growth in resale apartments at 15.2%, whilst its larger and more popular sister Chamonix comes in with a lower but respectable 5.5% increase. In the Grand Massif Samoëns has achieved annual price increases of 2.9% whilst the smaller neighbouring resort of Morillon has grown by 8.1% year-on-year and Saint Gervais les Bains and Combloux both outperformed Megève in 2007.

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Sources: FNAIM, Dauphiné-Savoie, Notaires de France / Perval

Ascendant
Ascendant is a British-managed estate agent offering ski and lakeside property for sale in the French Alps. We specialise in providing a highly personalised service for our clients, whether you are seeking to buy or sell an alpine property. We are members of the French estate agency trade association of FNAIM and we adhere to the FNAIM code of best practice applicable to the sale of French property.
Contact Ascendant:
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