Investing in the Alps: Property Prices in Alpe d’Huez and Val d’Isère
In the Alpine ski resorts, the price of a new 2-bed apartment can range from €290,000 to over €4 million, depending on the investor’s choices. Despite the current economic context, the mountain real estate market remains resilient. Demand for these “pleasure purchases” persists, and the scarcity of real estate operations in ski resorts, combined with the zero artificial net (ZAN) law limiting available buildable land, strengthens the patrimonial value of properties. Here’s a look at new real estate prices in the Alps for the 2023-2024 winter season.
Alpe d’Huez
Current New Development Launches
Several new development launches are underway, notably in Méribel, at the heart of the 3 Vallées, and Manigod in the Aravis massif. “Even with limited available land, developers are still engaging in rehabilitation-renovation projects of old hotels or former co-ownerships,” notes Trouver-un-logement-neuf.com.
For example, in the centre of Morzine in Haute-Savoie, the old Hotel Beauregard is undergoing rehabilitation, creating 17 apartments ranging from 1-bed to 4 beds in the main building. A 58 m² 2-bed sells for €650,000, or €11,200 per m². Two new constructions are being added to the original building, including a private chalet of 205 m² priced at €2,600,000.
Prestigious resorts like Val d’Isère in Savoie are seeing the emergence of new developments with soaring prices.
Choosing the Right Ski Resort with The Option Of The Mountain Town
Destinations like Monêtier-les-Bains in the Hautes-Alpes, in the Serre-Chevalier ski area, offer more affordable options, such as a new 2-beds starting at €290,000.
Opting for a mountain town can also be a wise choice. In Saint-Gervais-les-Bains in Haute-Savoie, a new 2-bed in Fayet sells starting at €290,000 (less 20% if you claim the VAT back), near the train station and the new valley lift, which will connect to the ski slopes in about fifteen minutes, expected to be completed summer 2024. See more info about the Belle Source here.
The Belle Source in St Gervais
Meanwhile, prestigious resorts like Alpe d’Huez in Isère or Val d’Isère in Savoie are witnessing the development of new developments with record-high prices.
Example: L’Expression in Alpe d’Huez
In Alpe d’Huez, the Expression new development, offers, for example, a 4-bed of 90 m² starting at €970,000, at Les Fermes de l’Alpe a 5-bed of 140 m² at €1,790,000€. In this resort, new 2-beds sell from €519,000 to €1.3 million. In Chamonix, at least €860,000 is required for a new 2-bed.
Investment Options: Ski Properties with Services vs. Traditional Ownership
New developments in the French Alps offer two primary investment options. Also do not forget that many of the top French ski resorts now issue an obligation of rental coupled with the new building permits that they issue, it is called the “Loi Montagne”.
1. Properties in Residences with Services
The first option involves purchasing a property in a serviced residence, which typically includes amenities such as a reception, staff, swimming pool, and spa. These properties often come with rental obligations, requiring owners to rent out the property at least on a short- and medium-term basis. This is often mandated by the “Loi Montagne,” a regulation that ties rental obligations to new building permits in many top French ski resorts. While year-round living or extended stays beyond a month are generally not permitted, the rental agreements have become highly flexible. Owners can now designate the weeks they wish to use the property and rent it out when not in residence, moving away from the restrictive leaseback agreements of the past that limited usage to 1-3 weeks per year.
2. Traditional Co-ownership
The second option is traditional co-ownership, which involves acquiring a second home that can be used at any time, including year-round living. These properties typically lack amenities like a pool or spa, resulting in lower service charges. However, clients can still take advantage of rental solutions to claim VAT on the purchase price and enjoy hassle-free rental management to generate income. This option provides greater flexibility and autonomy for those seeking a permanent or frequently used mountain retreat.
For example, in Valmorel in Savoie, a new 2-bed can be found starting at €330,500 in traditional co-ownership and from €400,000 in a tourist residence with Spa, etc.
Conclusion
Investing in Alpine ski resorts like Alpe d’Huez and Val d’Isère requires careful consideration of the location, type of property, and investment strategy. These resorts offer a range of properties from affordable options to luxury investments, each with its unique advantages. Despite economic challenges, the demand for mountain real estate remains strong, and the limited availability of buildable land ensures the enduring value of these investments.
