Athena Insight
HCI 2017 HOT CHOCOLATE INDEX & ALPINE PROPERTY REPORT
Mid-Season Edition Athena Insight / Hot Chocolate Index & Alpine Property Report – Mid-Season Edition
Market Movements – New Build & Renovated One of the strongest examples of the new-build supply and demand trend can be found in Val d’Isère in the Espace Killy ski domain, where opportunities for developable land are extremely rare. Such is the rarity, this is one resort where buyer waiting lists for certain property sizes have appeared again, something not seen since the last decade. In Val d’Isère prices for new-build or renovated properties of a sufficient quality have risen by almost 18% 2016/2017 THE PACE CONTINUES (17.7%) over the past two years, with high specification apartments now arriving to the market at around the €20,000 per square metre mark. New-build chalets are even more rare and therefore prices here can reach €25,000 per square metre and higher, especially if they are ski-in ski-out. The recent announcement of a large-scale redevelopment of the central ‘Le Coin’ area of the village will see around 100 new-build Following a record breaking 2015/16 season for French ski property, the result properties in phases over the next 5 years, the largest ever addition of accommodation to a French ski resort that pre-dates the purpose-built resorts of the late 1970s. of a strong pound, strong dollar and historically low mortgage rates, the interna- Similar trends have been seen in smaller, less well known resorts like Châtel in the Portes du Soleil, where competitive prices and the recent completion of lift and leisure infrastructure have attracted buyers with tional appetite for ski property has continued into the 2016/17 ski season. a long term view towards capital appreciation. Two years ago new-build property in Châtel was around €6,000-€7,000 per square metre. Today, prices stand at around €7,500-€8,000 per square metre demonstrating the resort is catching up with its Portes du Soleil neighbours in Les Gets (€9,000-€11,000) Whilst sterling buyers are in a less favourable position than they were this time and Morzine (€9,000-€12,000). last year, the extremely accessible French mortgage market is underpinning de- Throughout most French ski resorts, whilst resale properties can be found at lower prices and costs for improvements can be financed, the investment required to bring the property up to a modern day standard mand, especially in the larger internationally renowned ski resorts. can be substantial and can often spread across two ski seasons. This continues to push international buyers towards new-build. The lack of availability for certain property types across the market has created pockets of high demand and low supply, particularly with new-build and develo- PRICE GROWTH NEW-BUILD/RENOVATED APARTMENTS pers are trying to react quickly to respond to the needs of the market. This trend, along with the ageing nature of many resorts’ property stock, is creating a two- +17.7% €20k +4.2% tier market for ski property. €17.5k +20% €15k
€12.5k +5.2% €10k +19. 2% €7.5k +3.6%
€5k
€2.5k
VAL D’ISÈRE CHATEL LES GETS COURCHEVEL LES MENUIRES MÉRIBEL 1650
2015 2017
Source: Athena Advisers Athena Insight / Hot Chocolate Index & Alpine Property Report – Mid-Season Edition Athena Insight / Hot Chocolate Index & Alpine Property Report – Mid-Season Edition
Market Movements – Resale Properties PRICE MOVEMENT RESALE PROPERTIES Median price per square metre for resale apartments, Oct 2015 to Sept 2016 The market for resale properties across French ski resorts has a mixed pattern of growth. Recent figures from the French Notaires accounting for sales up to the year ending September 2016 show that roughly half of French ski resorts posted increases, with the other half posting decreases. Thollon les Mémises Resale properties in the Three Valley’s resorts (Courchevel, Méribel, Les Ménuires & Val Thorens) and those reachable by a Mont Blanc ski pass (Les Houches and Chamonix Mont-Blanc) all posted increases. In contrast, one third of the stations saw their prices fall, particularly in Tignes-le-Lac (-5.8%), La Clusaz Châtel (-2.4%) and Grand Bornand (-5.6%). Where decreases have occurred it’s usually due to aging areas of the resorts, like in Tignes-le-Lac, which is Morzine old compared to the other Tignes ‘stations’. Tignes is an interesting example as prices continue to increase Les Gets overall when the area’s more recent resorts are also factored in. The higher Tignes resorts have become increasingly attractive due to their snow surety and the same is true of other grouped resorts with large ski domains above 1,800m. Samoëns
Megève and Val-d’Isère remain the most expensive resorts for resale ski property at €7,620 and €7,970 Arâche per square meter respectively. However these average figures are heavily tempered by cheaper properties Le Grand Bornand at the boundaries of the resort. Conversely, one or two sales in the historic centre, of prime properties that Chamonix Mont Blanc change hands once every few decades, can affect these figures the other way significantly. La Clusaz Les Houches
Megève Saint Gervais
Praz sur Arly Les Contamines Montjoie The price differential between resale and new-build French ski properties shows that many resorts are hitting a critical ageing point with their property Les Arcs stock, creating a two-tier market of properties that either meet the Tignes le Lac requirements of modern day buyers and renters, or don’t. Properties La Plagne older than ten years or not renovated within the same period now have a Val Claret significant disadvantage in both the sale and rental market. Alpe d’Huez is a good example here, with around 300 properties being deemed unusable Méribel Mottaret Val d’Isère village by the tourism office each year. The same is true in older resorts and this is creating increased demand for newly built ski property, especially if Les Ménuires done in an old savoyard style. Val Thorens Lloyd Hughes Communications Le Corbier Director Valloire
Annual price change per sqm
Less than From to More than
Source Property databases of Notaires de France
Source: Notaires de France Athena Insight / Hot Chocolate Index & Alpine Property Report – Mid-Season Edition
MÉRIBEL ALPE D'HUEZ TIGNES CHAMONIX MEGÈVE COURCHEVEL CHÂTEL LES GETS VAL D'ISÈRE LA PLAGNE LES MENUIRES AVORIAZ LES ARCS PRAZ-SUR-ARLY 1650
Hot Property chocolate prices per sqm
Hot chocolate index & alpine French mortgage rates rise from property historic lows, though not deterring buyers It is perhaps no surprise that the most expensive hot chocolate found was in Méribel at €6 each, Average rates have increased by 0.30% across due to its popularity and central location in the 3 France creating a new benchmark rate of 2.15% Valleys. Not far behind were the usual suspects fixed for 20 years at a loan-to-value rate of 80%, including Courchevel and Val d’Isère, with even though rates below 2.00% can still be negotiated for higher property prices than Méribel. Smaller resorts some locations and profiles. In real terms this recent also turned up anticipated results — Les Arc’s com- increase only adds €14 to the total monthly cost petitively low property prices at €5,500 per square per €100k borrowed on the average fixed 20-year metre matched with its average hot chocolate price repayment mortgage. as did Praz-sur-Arly. For French mortgage specialist French Private Interestingly, some resorts came up with unexpec- Finance British buyers remain the most potent force ted results. Les Menuires, while still a part of the in the market. “Over 90% of our clients either live in Three Valleys and next to Val Thorens, has consi- the UK or are British expats living overseas,” comments derably cheaper prices, with hot chocolate at €3 John Luke Busby, private clients director at French each and competitively-priced real estate too. The €105,000,000 Private Finance. “With the pound bouncing back maturing resort of Châtel still enjoys low property of ski property sold upwards slightly and French interest rates only rising prices, yet here hot chocolate prices suggest that at an average just above rock bottom we anticipate another posi- the cost of living is already reaching the standard of €3.68 tive year for non-residents buying in France.” the likes of Chamonix and Courchevel, thereby per cup Whilst there is some pressure on rates to increase elevating it inline with the more internationally further, with the main indices in France for long term popular and expensive resorts in the French Alps. fixed rates rising by 0.80% since August last year, the market for finance in France remains extremely attractive.
Athena Insight / Hot Chocolate Index & Alpine Property Report – Mid-Season Edition
Athena Advisers Established in 2003 and today led by three partners, Athena Advisers is an international sales network and property investment advisory that specialises in attracting new-build and renovation development projects in key prime markets. From alpine chalets to sleek town houses, beach houses and everything in between in France, London, Lisbon and soon other destinations, we handpick our product portfolio very carefully, considering profitability but also lifestyle appeal. With multiples consultants on the ground in every destination, we are both an advisory and a concierge specialising in property and lifestyles, simplifying access to property investments and providing local insights.
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