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MGM reports increase in buyers

August 5, 2010 in France, Property | No comments

French developer MGM has reported a 70% increase in buyers this summer compared to figures from the same point last year. Buyers include expat Brits from Dubai, looking for a cool retreat from the UAE’s hot summer.

The lake-side town of Annecy is one location where buyers are opting for one of their off-plan apartments. But if you want to be in the French Alps does a non-ski resort really offer the same attractions?

With prices starting around €450,000 for a 2-bedroom apartment, there’s no cost advantage. Access is good: an easy 30 minute, motorway drive from Geneva, but you have to drive at least the same to reach the nearest ski area. As a well-established year-round destination for all types of tourists, it doesn’t suffer from the seasonal cycle of purpose-built ski resorts.

Other investors have bought in towns such as Bourg St Maurice, again not a ski resort in itself, and enthuse about being able to take advantage of 3 huge ski areas. The downside is a slightly run-down town and lower rental prospects.

Contact us today to discuss the pros and cons of buying in Annecy, Bourg St Maurice and other alternative locations.

A buyer’s market

May 6, 2010 in Buying advice, Property | No comments

Winter’s over and with Spring comes buying season. May is historically one of the best times for buyers to investigate the property market in the Alps. The winter rush of window shoppers is over and more property is put up for sale. Sellers may also drop their prices as there are fewer buyers around in the inter-seasons.

Knight Frank Wealth Report 2010 – how is “prime property” in the Alps holding up?

March 26, 2010 in France, Prime Ski Property, Property, Property Market, Ski Resorts | No comments

The recently published Knight Frank Wealth Report 2010 looks at the state of the prime property market worldwide, using sales data for 2009 from its international network of agents.

So how has prime property – “the most desirable, and normally most expensive, property in a defined location” – in the Alps fared? 5 ski resorts feature in the Report, the 5 big French players of Courchevel, Meribel, Chamonix, Megeve and Val d’Isere. The report concludes prices have fallen on average by 12%. The question is why?

Ultra cheap finance, which seems to be  supporting the upward performance of prime property in cities, particularly in Asia, does not seem to have the same effect for ski resort property? With the European base rate sticking at 1% for the 10th month running, there’s never been a better time to raise property finance. However the same low interest rates have protected many sellers and reduced the amount of property coming onto the market. Buyers expectations also play a part; those expecting to pick up a “bargain”, have been largely disappointed as few sellers have been forced to sell. Therefore the price drop is based on limited prime property transactions.

Alpine developers also remain reluctant to realign their prices with the resale market. Anecdotally, owners who bought a new-build property in the last 5 years are struggling to sell it for more than the same price today and so are holding off.

Pre-crunch, buyers were happier to invest for lifestyle reason; now the desire for capital growth plays a bigger role. Prime property prices in the Alps may well stay where they are until buyers look for something other than an investment opportunity.

So what is currently good value in the Alps?
- 1, 2 and 3 bedroom resale apartments in Chamonix
- chalets in Meribel; and
- property in Villars, Vaud, where sales restrictions to foreigners are more relaxed.