Spotlight on France
We highlight the latest trends influencing France’s prime ski hotspots
2 mins to read
Covering Costs: The single biggest change we have seen in the last decade has been the propensity of our clients to rent out their property, this has risen from around 50% in 2009 to almost 100% today. Although not expecting a high-yielding asset, most buyers are looking to cover maintenance costs and their own personal visits.
From new homes to renovations:
New-build stock continues to attract interest due to the 20% VAT rebate and reduced transfer tax. The challenge is finding new stock given planning restraints which vary from resort to resort according to their Plan Local d’Urbanisme (PLU). As a result, this pool of demand is being pushed back into the resale market with buyers opting to renovate existing properties instead, often extensively.
Public investment in a resort remains critical to buyer demand. The French resorts continue to forge ahead by renewing and expanding their ski and non-ski infrastructure. In Chamonix, the Compagnie du Mont Blanc has detailed the next phase of its €477 million, 40-year investment plan for the Chamonix Valley. A new replacement gondola will be in service at Flegere this season and the Charamillon lift in Le Tour is under construction. In The Three Valleys, plans for the 2023 FIS Alpine World Ski Championships continue with €42 million earmarked to upgrade lifts and gondolas along with new luxury hotels.
Since 2017 we have seen the return of the domestic buyer across the French Alps as confidence in the French economy picked up. Scandinavian buyers have increased in number in Chamonix and some Swiss buyers have been evident in the resorts closest to Geneva. In Courchevel, Chinese rental demand has surged and now accounts for most pre-Christmas demand. Two years ago there was no almost Chinese demand. This is a trend to monitor if tourism is a sign of future property demand.
For more information contact Kate Everett-Allen