Why is the property market in the mountains so lucrative?
Certain ski resorts have seen significant property price increases in recent years, with prices breaking the 10,000 euros per m² barrier in some areas for new-build properties. Part of the reason for rising price tags is the tightening up of planning restrictions in some French Alpine destinations over the past few years.
The iron rules of supply and demand also apply to the Alps!
The rising price tags has inevitably restricted supply, which in turn has boosted sales values. As a result, buyers are now looking around for new locations that are a little easier on their pockets. This means that there are opportunities for investors who are willing to do some in-depth research to locate the next up-and-coming resorts in the French Alps in order to make some serious money.
Another factor that is likely to ensure this sector stays buoyant, both from a sales and a rental point of view, is the Alps’ ongoing popularity as both a winter and summer destination with a very international clientele. As well as being a firm favourite with the domestic market, the French Alps attract visitors from all over the world, including Russia, the Middle East, Singapore and other parts of Europe.
Variety is the spice of life in the Alpine property market!
One of the attractions of the property market in the French Alps is its sheer diversity. If you’re interested in buying an apartment in the mountains, you really are spoilt for choice. In terms of apartments, the housing stock ranges in age from brand-new to 1970s and 80s vintage, with obvious differentials coming into play in relation to purchase price, maintenance costs and energy efficiency performance.
Equally varied is the size of apartment, with anything from small studio flats with a surface area of perhaps 20 to 25m² to four or five-bedroom properties. Many apartments are contained within larger ‘résidences de tourisme’, which offer the added benefit of certain communal amenities. You may also find that it’s easier to rent out flats in these kinds of properties as people appreciate the convenience of their (generally) town centre/close to the slopes location.
You may also want to think about the particularities of the area where your prospective flat is sited. Is it in a resort that’s got good transportation links, whether to your home city or to the home regions or countries of potential renters? Is the resort or area known principally for its winter sports activities, or is it an attractive place to visit at other times of the year?
Ultimately, it’s also important that you buy an apartment in the French Alps in an area with which you feel a real affinity, if you’re likely to be spending a lot of time there.
