Agents upbeat about french ski market

Chamonix, France Photo: Neiljs

Agents are feeling upbeat about the French ski market this year, thanks to economic conditions both in the country and further afield.

"Foreign interest in property in the French Alps is expected to rise during the 2015-16 season, thanks to economic conditions both locally in France and internationally," says Julian Walker, director at SkiingProperty.com.

Indeed, the country has already seen foreign demand for property strengthen this year, thanks to record low mortgage rates caused by the European Central Bank's announcement of €100s billions in quantitative easing.

The ECB's base interest rate, which determines the lending rates French banks pass on to customers, remains at historic lows and currently there are no signs this will rise. This means qualifying foreign buyers should be able to secure fixed rates of 2.5 to 3 per cent in France for some time.

Combined with affordable financing is the exchange rate with the euro, which remains favourable to British buyers and US buyers, in particular. At the start of September, the circa £1/€1.36 exchange rate meant a €300,000 French ski home was £17,000-£18,000 cheaper than the same month in 2014, thanks to nothing more than the stronger Pound.

Summer 2014 has also been especially productive in terms of upgrading lifts and improving infrastructure in a number of key French resorts, making the whole skiing experience in the Alps more enjoyable. These include Avoriaz, La Plagne (Montalbert) and Les Arcs in the Paradiski area, Les Houches and Brévent-Flegere in Chamonix, and around Meribel. In addition, Les Arcs has completed its brand new 'Mille 8' project, which includes a leisure complex with swimming pool, beginners area, accommodation blocks and toboggan run. Increasingly, resorts are offering year-round facilities, rather than focusing solely on winter sports.

"With true international appeal, a ready-made rental market and, in some resorts, limited supply of new-build, ski property in the Alps makes a sensible long-term investment in 2015," adds Walker. "Developers report that appetite to invest in quality off-plan ski residences has returned in key resorts. With lingering uncertainty in global economic markets, including China, a euro-based investment in a market with proven international appeal makes sense for many."