Will the effects of global warming on snowpack or difficulties in purchasing power eventually affect the real estate market in the mountains? Those concerns have recently been brushed aside by industry professionals who are looking forward to a very good 2022. “Even though it has passed, the Covid crisis has clarified interest in owning a second home, foreign buyers have returned and the onset of the heatwave has brought additional interest in spending summers in the mountains. This explains Good performance of the real estate market.Philippe Buyens, general manager of Capifrance’s agent network, analyzed.
The iconic resorts of the Alps performed very well, starting with Megève (Haute-Savoie), a top resort appreciated by the public for its architectural quality. “Limited inventory of goods for sale. Strongly protective local town planning means little new development is being built and prices will continue to rise”Olivier Roche, director of Megève Sotheby’s International Realty, predicts.
Like most resorts, Megève has summer activities, offering hiking, tobogganing in all seasons or golf. Top-tier properties benefiting from attractive locations are now transacting for between €20,000 and €25,000 per square metre.
Chamonix Resort is slightly less expensive and you can ski in three countries on the same day: France, Italy and Switzerland. For a 150sqm property, offering great facilities, especially great views and proximity to slopes, one needs to calculate between 12,000 and 13,500 euros per square meter, or about 2 million euros.
But in some places, especially in Courchevel (Savoie), one feels settled. If in Courchevel 1850 (the highest station), you always have to calculate between 40,000 and 50,000 euros per square meter, Courchevel 1650, 1550 and Le Praz are not so high in the elite positioning, there are many new projects there. “Ample housing supply will undoubtedly lead to a ceiling in house prices”Olivier Roche believes.
According to the National Real Estate Federation (Fnaim), an average of 11,624 euros per square meter is required. The same is true for Méribel, where the market is vibrant (average €10,600 per sqm), but supply has increased as new projects are built. Therefore, the price should stagnate.
Reduced purchasing power for some customers
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