Weak euro and low mortgage rates spark flurry of french ski property activity
Val d'Isere, France
French ski resorts were left dreaming of a white Christmas last year, as snow appeared to stay away from the Alps, stalling the start of the season. Over Christmas, though, the snow finally took to the slopes - and property buyers have been close behind.
The arrival of the snow was far worse than predicted, with a downpour within an unexpectedly small window at the end of December causing blizzard conditions that stranded 2,000 skiers at Chambéry airport. While the authorities struggled to cope with the thousands of cards and coaches needing emergency assistance during the horrific conditions, resorts have welcomed the flurry of interest from tourists and investors alike as 2015 begins.
Conditions are prime for investors looking for a smooth ride, as the euro took another tumble downhill this month.
The pound rallied to a seven-year high against the Euro on Friday 2nd January, following a speech made by ECB President Mario Draghi. Draghi's comments on potential quantitative easing also pushed the Euro lower against the dollar, seeing it fall by 1.2 per cent to $1.186, marking its weakest level since March 2006.
This combination of the Pound and the US dollar reaching seven and nine-year highs respectively against the Euro has providing a big boost to the French ski property market, according to Athena Advisors.
Mortgage rates are also at all-time lows, notes John Busby at French Private Finance.
Indeed, the TEC 10 index dropped below 1 per cent for the first time ever in December. This is now the rate investors will receive when lending to the French Government for a 10-year period.
"Hopefully this drop will continue to make it through to retail mortgage rates and so buyers will continue to benefit," adds Busby.
"While sub 3.0 per cent rates boosted the French mortgage market over Christmas, the beginning of 2015 may herald even lower rates in France as the long-term outlook for growth in Europe remains weak," he forecasts.
"Clients at all levels have been capitalising on the market opportunities," says Nicholas Leach at Athena Advisors.
The most activity is at the top end, he explains, as cheap lending and value in the Euro proves too tempting for HNW buyers, especially those who have been sitting on the fence for a few years.
"Nationalities are mixed, but British and Middle-Eastern buyers are predominant, which correlates to the strengthening pound and dollar," he continues.
Indeed, ski property viewings are up 42 per cent compared to last season, with Val d'Isere, Courchevel, Megeve and Les Menuires leading the Pack. The little-known resort of Chatel is also getting "a lot of interest", thanks to its relatively low prices.
Other agencies have seen similar surges in demand.
"Over the past two years, we have experienced a great increase in activity levels, the winter season has started in the middle of summer for us, which is something we last saw in 2008," James Ross, sales manager at Erna Low Property, told Property Wire.
"It appears that the French Alps is enjoying a renaissance as a favourite destination for first time investors in France, and we are very well prepared for this activity."
Athena, meanwhile, has property viewings booked in every day for the next four weeks. With Greece's economy adding to the latest wave of concerns surrounding Europe, the Christmas French ski resorts were dreaming of could continue for some time to come.