What’s next for the French Alps. What to expect in 2022.
Every winter around 2 million British skiers and snowboarders head to the Alps with the majority choosing the slopes of France as their preferred destination.
Figures from Ski Club of Great Britain tell the story: 57%, some 1.1 million, of British winter sports fans place France at the top of their wish list. For property buyers too, the French Alps have an enduring appeal. From the hard-core, year-round sporting appeal of Chamonix to the Michelin-starred elegance of Courchevel, there’s something for everyone among France’s charming mountain villages and magnificent alpine scenery.
“The French alpine market has been extremely strong for the past eighteen months,” says Roddy Aris, head of Knight Frank’s French Alpine network. “Stock levels of property for sale are very tight which is impacting prices and broadly speaking, properties are selling within 5% of asking prices. Anyone looking for bargains will have a hard time at present.”
Across French alpine resorts, Knight Frank registered price rises of 5-10% last year, increases that shows no signs of slowing. “The pent up demand was clear once President Macron reopened the borders to British travellers in January,” says Roddy Aris. “I expect that 5% negotiating edge between buyers and sellers to fall further in 2022.”
For anyone looking to purchase in 2022, the advice is to be realistic and get prepared. With competitive bidding at a high level, buyers should be cash-ready to make a move, or at the very least have their financing well advanced.
Knight Frank source best-in-class properties in Chamonix, Val d’Isere, Courchevel, Meribel, Megève, Saint Martin de Belleville, Combloux, Saint Gervais les Bains and Argentière.
The two resorts set to perform especially well in 2022? Chamonix and Megève predicts Roddy Aris. They saw the highest price growth of all French resorts last year, 6.1% and 4.7% respectively over the past twelve months, helped by easy access with airports at Milan, Turin and Geneva and by the relative value they offer. While top-dollar Courchevel 1850 has the highest price per square metre for prime Alpine homes at €26,800, Megève comes in at €14,500 and Chamonix at €12,500.
“Despite registering a record sale price of €20,000 a square metre on one property last year, Chamonix is the most affordable of all the resorts we cover and offers, I believe, the most capital uplift in the coming year,” says Roddy Aris. “It is a year-round favourite, a buzzy working town that attracts a truly global audience, a mid-height resort at 1,000 metres where 90% of the skiing is high altitude, above 2,000 metres and the rental returns available are some of the strongest in the Alps. It ticks all the boxes.”
Knight Frank Research also put Chamonix and Megève as the top two resorts in the Alps for remote working, comparing broadband speeds, airport access, the extent of amenities and the ease for non-residents to buy property. The two resorts also scored highly for sustainability, among only nine French resorts to receive the Flocon Vert or Green Snowflake for their pioneering climate and energy action plan.
Rental returns are increasingly important with Knight Frank’s Ski Report showing that 90% of owners now look to achieve some income from their property. Comparing six resorts in France and Switzerland, Courchevel attracts the highest daily rental rate, an average of €512 per day, against €429 in Megève and €406 in Chamonix.
Buyers will continue to look closely at the rules around reclaiming VAT on new-build property, a potential 20% saving. “Remember though that this is not something for nothing,” says Roddy Aris. “Once you have signed up you are committing to making your property available to rent for twenty years and that includes supplying basic services such serving breakfast and arranging cleaning. If you stop renting or sell your property, you must repay a proportional amount. It is essential to take a long-term view.”
Overall, the French property market remains remarkably dynamic, constantly adapting to market conditions and employing ever-evolving technology and infrastructure upgrades. “A ski property in the best French resorts is a solid, safe investment, both financially and for lifestyle,” says Roddy Aris. “As a long-term investment, the right property is a sure bet plus you get to use it and enjoy time in the mountains.”
