Every few months since the start of COVID we have had a look at what property prices are doing in the French Alps. The history is here:
Covid is by no means over, however we can see that we are going to have to learn to live with this virus for some time.
Because of covid restrictions almost none of the ski lifts opened for the 2020/21 winter season. The British aren’t allowed to come on holiday, however, that has not stopped a fair number of French visitors arriving over the winter to make the most of what is on offer in the Haute Savoie.
Right now we are still seeing unprecedented demand for property in the Alps. Our numbers go back 20 years and 2020 has been our busiest year with a 20% jump in enquiries. There is no let up in 2021 either. The same scenario is being repeated around the world. People are discovering that they can work from home which means they can work and live where they really want to be. It’s something we can empathise with. Half the Alpine Property team came to live in the Alps for this very reason. This activity is not slowing down so we don’t expect any change in the market in the near future.
The Alpine Property market in the French Alps has always dealt with high demand from British based customers. We are still getting lots of enquiries from the British, but obviously, actual sales have dropped off thanks to the travel restrictions. This demand has been more than replaced by French customers. So much so that there is a reduced supply of properties. When demand outstrips supply it can only mean that prices will increase.
We monitor a couple of sales figures. The primary one is average property prices. Over the last 10 years we have seen between a 20 and 30% increase in property prices. Depending on the type of property and the area. However, over the last 3 years they have been fairly flat across the board. It’s early days but the last 6 months is definitely showing a 2-5% increase in prices across ski villages of the Haute Savoie.
The second metric we follow is the average agreed price compared to advertised prices. At the moment there is only a reduction of 1 or 2%. This means that most properties are selling for asking price. And that is the sort of market we are in: a seller’s market. Now is not the time to make an offer at below asking price!
A further driver of this increased activity in property investment is fear of negative interest rates and inflation. In the first instance not to have to pay the banks to look after money, and the second to safeguard cash from inflation.
So to summarise, the current property market in the alps is very active. Prices are edging up. New properties for sale on the market are becoming harder to come by, so this can only mean the prices will continue to rise.
If you have any questions to ask about the market please put them in the comments and we’ll do our best to answer them.