Property price report

Recent figures in the September edition of l'Express magazine show that property prices in the French Alps have held up well in the face of the global crisis. Aided by a wealthy international client base, low interest rates and tax breaks for French buyers, the property market in Haute-Savoie remains relatively stable despite a decrease of 20-30% in the overall volume of sales.

In the region's capital, Annecy, prices of resale apartments have fallen by an average of 4%. Compared to the French national average of -10%, this represents an encouraging performance for the "Venice of the Alps". The outstanding quality of life the town has to offer combined with continued investment by local and international businesses has contributed to Annecy's popularity with buyers. Lakeside villages and apartments in the central "Golden Triangle" of Annecy centre are still sought after locations and properties in popular residential suburbs such as Annecy-le-Vieux continue to successfully outperform the national average.

Globally property prices of resale apartments in Haute-Savoie have decreased by an average of 4%, however ski resorts have fared more favourably and prices have slipped by an average of less than 3%. Some resorts have reported price increases, such as Chamonix, Les Houches, Samoens and Manigod, whilst others have seen a slight decline. Morzine and Saint Gervais property prices are almost at a standstill at -1%, whilst Le Grand Bornand, La Clusaz and Les Contamines are showing minimal declines of 2-3%.

Whilst many agents will certainly be grumbling about a decrease in the volume of overall sales, most agree that the months since the end of April 2009 have shown increased activity in both the number of buyers entering the market to start their property search and the number of monthly sales agreed. In recent weeks we have seen a flurry of activity as confidence returns to both the banks and buyers and a number of great-value, high quality properties have recently sold.

The ski resorts of the French Alps have always had a shortage of property for sale and despite the global crisis there was not a sudden influx of distressed stock into the marketplace - the Alps is a second home market with affluent owners, unless a major change in personal circumstances forces a sale, many would-be vendors are biding their time and holding off marketing their property.

The current market position is good news for buyers - there is still a greater selection of property on the market than in previous years and there is a hugely varying degree of negotiation possible dependant on the personal circumstances of the vendors. Interest rates with the French banks we work with are at a record low, French buyers have re-entered the market and the general consensus is that the alpine property market is starting to pick up again. With the busy buying months before the ski season ahead of us, now is a great time to invest in your dream alpine property.

Annecy Property

Recent articles featuring the Annecy property market both carried comments from Paul Wiseman, Director of Ascendant Property. An article in the Daily Mail, entitled "Charmed New Life" and a 10-page feature on the local property market in the September edition of the French magazine "L'Express" both highlight the continued interest for both French and international buyers in this beautiful and unique part of France. 

The Annecy property market has been enjoying high capital growth and increasing demand since the 1990s and although the Eurozone property slow-down has affected some areas of the local market, other sectors are continuing to perform well. In the first quarter of 2008 property prices* in the more popular areas of Annecy continued to rise, with 6% in Annecy-le-Vieux, 3% in Annecy centre, 8% in the eastern sector of Annecy, 6% in the central north west sector of town and 3% in the villages around the lake. Conversely some areas experienced a decline in property values; the area north west of Annecy saw a -1% fall, south west Annecy -5% and the Albigny "Golden Triangle" by -3%. Overall property prices across the Annecy region remained at the same level as 2007.

From a pure investment perspective, some parts of Annecy are performing strongly due to increased development by the local authorities; the tired area surrounding the railway station is beginning to show the first signs of an influx of investment cash and with more planned this area is set to do well – already property prices have increased by 50% over the past 2 years. An example of the degree of the future success of this development can be seen in the area around the "Courier" mall, where new executive apartment blocks have sprung up with underground parking and all the mod cons. Annecy-le-Vieux, a suburb of Annecy centre of 20,000 inhabitants, is enjoying a minor boom in first time buyers, drawn to the village-like feel of the area and views of the lake and mountains. The extension of the A41 motorway to Geneva (Annecy-le-Vieux is ideally placed for a 25 minute commute into the city centre) is still to make its presence felt in property price terms - although the general feeling amongst agents is that the affluent city executive from Geneva will only invest once the motorway is open rather than suffering a lengthy commute in the meantime. With the opening planned for 2009 now is a good time to consider a purchase. Along the lake-front Albigny sector the majority of buyers are retired, cashing in on the sale of their family home and purchasing a smaller retirement apartment with lake views and with all amenities on the doorstep. Conversely many of the younger, executive buyers are priced out of the Golden Triangle and focus their efforts on Annecy old town - life amongst the cafes and restaurants of the pedestrianised historic streets and canal sides ideally suits city-centre workers.

The lakeside villages on the east and west banks of lake Annecy remain the most popular amongst international and British buyers, with the east side of the lake drawing the most interest. The villages of Veyrier, Menthon Saint Bernard and Talloires on the east bank continue to out-perform Saint Jorioz and Sevrier on the west bank, mainly due to the old Savoyard charm of the village centres, their west-facing aspect ensuring sunshine later into the day and the Route Nationale which circles behind the villages and alleviates some of the traffic congestion in the summer tourist season. The villages on the west side of the lake still suffer from tourist traffic in both the summer and ski seasons as well as daily commuters to Annecy centre. However a planned tunnel under the Semnoz Mountains to reduce traffic congestion on the west bank is set for 2013 and a project for a tramway between Saint Jorioz and Annecy centre is in the very early stages of consideration. Whilst this will have little impact on the current market the potential for long term investors is certainly there. In today’s market property prices on the east bank of Lake Annecy are currently 25% more than the west. For buyers seeking an affordable base on the lake and who are prepared to be further out from Annecy centre (30 minute drive), the "Petit Lac" area on the southern tip is developing well, with houses selling for as little as 350,000 euros.

For more information on the Annecy property market and property in the surrounding area please contact the Ascendant team.

* Based on resale apartment prices