Posted on 15 January 2014
The French resorts of Morzine and Chamonix were the most active property markets in the French Alps in 2013, according to a report by international property consultancy Knight Frank, with both resorts seeing prime prices increase by eight per cent or more in the year to December 2013, fuelled by on-going investment in the resorts’ infrastructure.
Prices in the most upmarket resort of Courchevel 1850 remained stable in 2013, but sales volumes are low due primarily to a naturally low level of available supply – the resort only consists of approximately 230 chalets. With supply constrained, demand has spread down the mountain from Courchevel to Courchevel Moriand (i.e. from 1850 to 1650), explained the report, where a range of new apartment developments have been built. Together with the new €70milion Aquatic Park, Courchevel Moriand is expected to be the focus of increasing demand in 2014.
Meanwhile, in Val d’Isere the €1.5milion-€2.5million price bracket has seen the most sales following a price fall over the last 18 months (in some places by up to 20 per cent). Above this price threshold sales volumes have remained largely flat.
According to Knight Frank, the highest demand for property in the French Alps comes from Northern Europe, followed by the UK and then Russia and the Commonwealth of Independent States. The French Alps and Côte d’Azur together account for 50 per cent of all French property searches on the consultancy’s website.
The report noted: “With the cost of borrowing at historic lows many dollar and sterling purchasers are financing their acquisitions with a Euro mortgage as a way of mitigating any future fall in the Euro.”