Contrary to the general trend in France since last year, marked by a stabilization or even a drop in housing prices, mountain real estate continues to grow, now reaching unprecedented heights. According to Fnaim, sales values in the different mountain ranges increased on average by 4% in 2023. This increase is equivalent to that observed over a period of six years, from 2014 to 2020. Since the end of the first confinement, prices increased by more than 30%. “Mountain real estate is maintaining its upward trend, because it is not considered a basic necessity market, but rather a “pleasure” investment, similar to the coastal market, comments Loïc Cantin, president of Fnaim. From this In fact, transactions there are less likely to be affected by the rise in borrowing costs because buyers are not first-time buyers and have higher than average purchasing power.”
Chalets popular with foreigners
The Alps are home to the most expensive ski resorts, led by Val-d’Isère (€14,758/m²), Courchevel (€12,600/m²), Megève (€11,057/m²), Méribel (€10,615/m²). m²), La Clusaz (€10,364/m²) and Chamonix (€9,688/m²). These figures represent averages covering all types of property, thus hiding considerable differences between modest studio cabins, now less sought after, and luxurious chalets. In these historic resorts, the price per square meter of a chalet is often double that of an apartment, due to the scarcity of property and the pressure exerted by foreign customers with strong purchasing power.
The integrated stations, built in the 1960s, do not enjoy the same reputation and prices are affected. Thus, Tignes, located in Espace Killy like Val-d’Isère, displays significantly more affordable prices (€7,592/m²), as does Les Ménuires (€6,048/m²) in the heart, like Méribel and Courchevel , from the very renowned Trois Vallées estate. Also less popular, Les Arcs (€5,214/m²), La Plagne (€4,491/m²) and La Rosière (€5,449/m²) have rather affordable prices. These resorts still represent excellent investment opportunities because they are all located within a vast ski area. Outside of Savoie and Haute-Savoie – the two departments bringing together most of the large resorts – prices are significantly lower. Thus, L’Alpe d’Huez, which displays the highest prices in Isère, is at 6,919 euros per square meter. In the Hautes-Alpes, Montgenèvre takes the prize (€4,447/m²).
Prices continued to rise.
© / Art Press
Minimize expenses
Generally speaking, the acquisition of real estate in the mountains should not be motivated by the intention of making a rental investment. Even with particularly high weekly rental prices, especially during school periods, the expected profitability would not be satisfactory, oscillating between 2% and 3%. Purchase values are often too high and the annual occupancy rate too low to achieve best results. Rather, such a purchase should be seen as an investment in pleasure, possibly while seeking to minimize the associated financial charges. “Most of our clients reserve their property for a few weeks a year and rent it out for the rest of the time. Their main objective is to cover the high costs of a property in the mountains. Reasonably, they are likely to rent their accommodation six to eight weeks in winter and four weeks in summer”, comments Bérengère Servat, general director of CIS, a network of 15 real estate agencies in the Alps.
Although reassuring, this perspective should not make us forget the rental management and concierge fees, which generally represent between 20 and 25% of rental income. Faced with the snow deficit linked to global warming, it is crucial to target resorts located at an altitude above 1,800 meters or which have diversified their activities, both in summer and in winter. Destinations such as Tignes, Les Arcs, Megève or Morzine thus benefit from high occupancy rates thanks to their wide range of sporting, relaxation and cultural activities offered to visitors.
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