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

Page 2/2
<< Back to Page 1...

Good news for both buyers and vendors

If you are planning to buy a ski or mountain property in the French Alps then there are many advantages.

You can be confident that you are buying into a region of France where property values continue to show significant growth. If you are considering buying a property in Haute-Savoie then you are also making a purchase in an area that is displaying its ability to adapt to the changing needs of today’s buyer – whether by providing more spacious property or by developing more resorts into year-round holiday destinations. If you are considering letting out your property to generate a return on your investment then you know that the majority of the resorts in the area have busy summer and winter seasons, and since they are not purpose built they also have immense French (and, more specifically, Alpine) character and charm.

The region’s proximity to Geneva enables the majority of the resorts in the area to be reached within 1 hour of the airport, which continues to be a big plus for British buyers. Geneva and the Mont Blanc tunnel also draw many Swiss and Italian second home buyers into the region as well as the British. An increasing number of clients also now considers settling in the area permanently, whether it is because they plan to work in Geneva or because they are able to split their time between working from home in the Alps and travelling back to the UK via Geneva Airport.

Most importantly of all a property purchase in the French Alps is about achieving a better quality of life. The Haute-Savoie region of France is the country’s most popular tourist destination and this is unlikely to change. Beautiful surroundings, the charm and character of an older way of life and the ability to simply get out and enjoy some of the best winter and summer sports going continues to draw both buyers and visitors from all over France and the world.

Vendors are often in the very fortunate position of knowing that they have made an excellent financial and personal investment. They have had a holiday or permanent home in a fabulous part of the world, enjoyed the best that France has to offer and to cap it all off nicely they have made a good profit on their purchase. Vendors who are selling their property and taking the money back into the UK also have the benefit of the strong Euro to enable them to capitalise on their investment further.

What's in store for the next 12 months?

We predict that the next 12 months in the Haute-Savoie property market will show stable growth, without a major peak in property values across the region globally. Key mountain resorts currently showing heavy investment from developers and town halls will continue to perform well. Many buyers will consider a smaller property investment initially, with plans to sell and upgrade into something larger when they feel that the UK economy is stronger. The region will continue to draw plenty of interest from British buyers who will be more inclined to negotiate harder on property prices.

The value of the pound is not expected to strengthen before the final quarter of 2008, and this will obviously impact on the budgets of British buyers throughout the year. Vendors who are returning their Euros to the UK should consider being flexible on the asking price of their property and take advantage of the strong Euro to recover the cost of the negotiation.

Buyers who are considering buying with a UK mortgage or cash should also consider a French mortgage. Typically interest rates in France are lower than in the UK and most banks are now happy to lend up to 85% of the sale price of the property. As well as vastly reducing the amount of Sterling that a buyer needs to bring to a sale up front, this will also enable property owners to make small monthly repayments, during which time the Sterling-Euro exchange rate may improve.

Buyers can also fix their Euro exchange rate for their mortgage repayments with a currency exchange company for a 12 month period or longer, which will enable you to budget exactly how much you will be paying each month and to avoid the pitfalls of any further decline in the exchange rate.

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:
Tel: 0844 555 3274 (UK lo-call rate)
Tel: +33 (0)4 50 10 44 23
Email: info@ascendant-property.com