Posted on 19 October 2012
The popularity of Alpine markets is rising, as the last twelve months have seen prices stabilise or even increase, according to the latest report from Savills. This report covers 28 resorts within the region, including those in France, Austria and Switzerland, and found that 72% have seen increasing stability in asking prices, while 42% of the resorts have seen asking prices increase by more than 5%.
One of the reasons for this increase in prices stability is due to a toughening up of planning regulations in certain areas of the Alps, leading to a decrease in supply.
Another reason for this increase in the popularity of Alpine property is that it is frequently perceived as being as secure place in which to invest, and many resorts now offer year-round facilities leading to increased rental yield potential. This also gives owners the opportunity to enjoy their home throughout the year.
One of the most popular countries for investors is Austria, and this is due to the country avoiding the technical recession that has affected the rest of the European Union. Property prices have steadily increased since 2005, and rose by 3.1% last year. There is also strong domestic demand for second homes in the Austrian Alps.
In contrast house price growth in France has contracted during the last quarter of 2011 and the first quarter of this year. However although there were 7% fewer overseas buyers in the second homes market, average prices in this sector increased by 12%. Prices in the Rhone Alps, which is where the majority of the resorts are located increased by 27% compared to the previous year as prices have now recovered well from the price falls seen in 2009 and 2010.