Posted on 22 November 2024
Is Buying a Ski Apartment in the French Alps a Good Idea? There are many reasons to say yes. More than ever, people are investing in the French ski property market. What was once a stagnant industry now offers potential overseas buyers an ideal investment.
Chalets were the preferred trend some years ago, but more people now opt for apartments because of better prices, easier management, and location. Prime locations that easily match Geneva for alpine property types are now making headlines and for all the right reasons.
Reasons why buying a ski apartment in the French Alps is a good idea
1: A Year-Round Destination
If you assume the French Alps are only busy during winter, think again. Increasingly, more towns are also summer destinations, and with pristine green landscapes, potential buyers see the year-round potential from summer to other winter seasons. This is a massive win for those who want passive income or rental potential.
2: Leaseback Rental Properties for Extra Income
Anyone looking for a buy-to-let income or a holiday apartment should consider French leaseback properties. Introduced in 1967 by the French government, buyers purchase a freehold, self-catering apartment and lease it back to a property management company for rental income.
Buyers also get a 20% VAT refund off the property price. This option ticks all the boxes for buy-to-let investors because it is down to the company to fulfil the occupancy rates, and the buyer benefits from better property taxes. Remember, though, that this is an agreement with tax authorities, and if you sell before the specified time, you will have to pay back a portion of the VAT. Another alternative is the Para-Hotelier scheme. (More about property rentals.)
3: Resort Infrastructure
Faster ski lifts, transport buses, alternative activities, and quality accommodation all contributed to enhancing reputations, especially with Brits looking for alternatives to higher-priced places like Courchevel. Many resorts have also invested in leisure activities off the slopes, such as public swimming pools and gyms, and natural surroundings are promoted as year-round hiking, trekking, camping, and photography activities.
4: Better Purchase Prices
France has always had the edge over Switzerland in terms of prices per square metre and value for money, but more French resorts are joining the existing portfolio. Property owners are increasingly turning away from glitzy towns like Courchevel to the five villages of Tignes, where they get more space for less money and a better return on investment. Sometimes, there are discounted prices if you buy off-plan into an investment project. The stats also show that apartments cost less per square meter than chalets.
5: Easy to Manage
Apartments are far easier to manage than chalets. Most places operate on a condominium basis, where the owner pays a service charge, and everything is handled for them, including cleaning, bill payments, ongoing costs, and upkeep and maintenance of communal facilities.
Tips on Buying an Apartment
All foreign buyers have the same goals: a worthy real estate investment with capital growth potential and good liquidity. But with the vast range of locations, how do you decide where to buy? The Alps is quite a broad area that includes the highest mountains in Europe and extends into other countries like Slovenia, Germany, and Switzerland. In France, essential areas are Portes du Soleil, Paradiski, Mont Blanc, the three valleys and Espace Killy. But do ask yourself the following questions.
1: What’s Your Purpose for Buying?
Before searching property listings, the purpose is the most significant driving factor in determining the ideal place to buy. If your primary aim is rental income potential, choose a central location with quick and easy access to bars, restaurants, and shops and an excellent transport network. Consider the tax-back leasing scheme to double up on your rental income, but remember that buyers are only exempt from capital gains tax after 22 years.
2: Dual Season Resorts
Summer activities and facilities are a win-win for everyone, so look for dual-season villages and towns. Chamonix and Courchevel 1650 set this trend via biking trails and water parks, among many other summer activities. Year-round places also increase liquidity potential if you want to convert your brick-and-mortar assets into hard cash quickly.
3: Location and Developments
Ski infrastructure constantly needs upgrading to keep up with travel trends, so destinations need to be ahead. Check with local experts about development plans, but consider the location. Skiers favour high-altitude resorts because they have better snow quantity and quality. In contrast, low-altitude resorts have fewer transfer times from the airport and more activity all year round, including summer.
Budget Buyers and Backdoor Alpine Villages
The real estate market opened to many nationalities, and demand is outstripping the supply. While you can pay top money in established towns, look to smaller alpine villages on the outskirts. Known as backdoor or satellite towns, the same apartment is often a fraction of the price with better potential for capital growth, and they are an excellent place to start your property search.
Chamonix Versus Megeve: Chamonix is just 40 kilometres from Megeve, making it an ideal alternative. Keeping authentic alpine architecture, it is popular during the summer seasons. If you can forgo the Michelin-star restaurants and designer boutiques, prices are a third of those in Megeve. An excellent place to start your search is Saint Gervais, near Chamonix.
Tignes Versus Val D’Isère: Increasing costs are sending budget property buyers to nearby Tignes. British skiers adore both districts which are in France’s Espace Killy area. While some have criticised Tignes for haphazard, concentrated buildings that lack heart and soul, efforts to reinvent the town have paid off.
Les Menuires Versus Meribel: Les Menuires and Meribel are in France’s three valleys, the most significant ski terrain. Buyers in Les Menuires have two distinct advantages: average prices are 40 to 50% lower, and liquidity is 20% better.
Popular Ski Resorts for Property Ownership
International buyers have many villages and French mountain resorts to choose from. Budget plays a large part in deciding where to buy. Resorts are also adapting to year-round tourism seasons, with alternative activities and infrastructure, so buyers are entering the market at an ideal time. But here are the places that stand out.
Best for Skiing: Head to the Three Valleys district that includes Courchevel, Meribel, Val Thorens, Menuires, Orelle, and Brides Les Bains. Guaranteed snow includes varied access to blue, green, red, and black runs.
Outdoor Activities: Year-round resorts receive high demand for properties. They increase liquidity chances should you need to sell. Many resorts offer activities, including Les Gets, Chamonix, Courchevel, Meribel, and Alp d’Heuz. Certain resorts are putting tremendous effort into becoming dual season. Adrenaline junkies love with Chamonix, for the huge range of adventure sports. Otherwise, the Grand Motte glacier offers 20 kilometres of summer skiing.
Family-Friendly Atmospheres: Certain places are family friendly, and Megeve’s traditional atmosphere often attracts upmarket buyers, while Les Gets, at the lower end of the market, revolves around family moments, with child-friendly slopes and loads of summer activities.
Nightlife, Dining Out and Après-Ski: Look at Chamonix, Courchevel, Val d’Isère, and Meribel village centre. Seven of Courchevel’s 70-plus restaurants are Michelin stars, proving that skiers have ambitious standards for satisfying the tastebuds.
For Prices: While places like Courchevel are expensive, especially for luxury chalets, buyers often choose alternative districts to get better value. Les Arcs offers affordable prices without compromising on the Alpine atmosphere. Remember the extra property purchase costs, which range from 6 to 8%, including notary fees and stamp duty. Also, consider the French property taxes and the capital gains if you sell.
Further Information
So, we hope we have given you helpful information on whether buying a ski apartment in the French Alps is a good idea. To see apartments for sale, our portfolio is here. For more information about any home or the buying process, fill in the enquiry form on the right-hand side or call or email our team of experts to speak to a local sales rep. From viewing properties to the first stage of a signature on the compromis de vente, legal requirements and putting your key in the door, we are with you at every stage.
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