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.

Property price report

An April 2009 report issued by FNAIM (Federation Nationale de l'Immobilier), the largest estate agency association in France, comments on the French property market and the impact of global economic conditions on prices.

France

Property prices across France fell during the first quarter of 2009; however the professional opinion is that this adjustment reflects a correction rather than a collapse in French property values. Unlike other markets such as the UK and the US, the French have been more circumspect in their property investments and much of the reason behind the fall in property values is a sluggish market due to a lack of consumer confidence in long-term investments. FNAIM also comments that market conditions for buyers have not been this advantageous since 2003; attributable to a number of factors such as low interest rates, low inflation and negotiable property prices.

Overall property prices across France have decreased by -5.7% over the past 12 months and there is a -9.8% decline between the first quarter of 2008 and the first quarter of 2009. Regional fluctuations show some differences, with declines of -7.7% and -6.1% on the east and west side of the country, -6.4% in the south-west, -8.8% in the centre and Alps, -11.2% in Paris and -13.3% in the south-east of the country.

A survey conducted amongst 260 FNAIM agencies across France recorded a -25% decrease in the number of transactions taking place, however 61% of the agencies recorded an increase in the number of interested buyers year-on-year. Just over half their vendors were prepared to negotiate on the asking price of the property, by an average of -14%. Interestingly 23% of candidates are looking for a second home, showing that France has maintained her popularity amongst holiday makers and property investors.

Haute-Savoie

In the Haute-Savoie region we have seen property prices negotiated by an average of 5-10% during the first quarter of 2009, with some resort centre properties still selling for the full asking price and vendors in the outer-lying areas accepting lower offers. Advertised sale prices have not yet reduced by any great margin. As less new build developments (-17.5%) are launched across the country and the ski resorts of the Alps, rental values have started to increase and in the central and alpine regions rental values are up 3.9% for apartments and 3.7% for houses. The squeeze on supply has increased demand for rental properties and this is welcome news for property investors.

The alpine property market is starting to show signs of levelling out, with a greater number of buyers registering interest in property in the region. Whilst some buyers are adopting a "wait and see" approach, others are successfully negotiating prices and mortgage deals that enable them to invest in a property that would have been unaffordable two years ago. With an excellent ski season behind us where occupancy rates reached 100% in the peak weeks and an average of 70-90% across the rest of the season, it's a fantastic time to take the plunge before the green shoots escalate.

To find out more about property for sale in the French Alps, please contact us.