Add listing Log in

France at the height of

01.03.2009
Author: Alyssa ZIGMANN
57
Over the past decade, the French real estate market has rightfully been one of the most active in Europe. But if in summer the Cote d'Azur is invariably the most popular destination for foreign buyers, then in winter their preferences certainly belong to the Alpine foothills.
France is great, but for foreign buyers of real estate, all the most interesting things are concentrated in the south-east of the country. This choice is quite natural. The Rhone–Alpes and Provence–Alpes–Cote d'Azur regions, with their constituent provinces, offer their residents a unique opportunity for year–round recreation. In summer, you can relax on the beach and enjoy the mild climate, and in winter the mood changes to cheerful, almost sporty, thanks to the Alpine peaks and legendary ski slopes.
Real estate in winter resorts is not inferior in popularity to summer ones. So, if in the seaside towns of Saint-Jean-Cap-Ferrat and Villefranche-sur-Mer on the Cote d'Azur, the share of foreign homeowners is 64% and 55%, respectively, then Chamonix is the oldest and one of the most famous alpine resorts in France-Mont Blanc (Chamonix Mont-Blanc) is almost 68% populated by foreigners.

Choosing the best
Located at the foot of the glaciers of Mont Blanc (4,807 m), the Chamonix Valley stretches for 16 km. It includes several skiing regions, most of which belong to the highlands. Chamonix can rightfully be called a Mecca for fans of extreme skiing and mountain climbing: perhaps the most difficult black trails are located here – the steep long descents of the Grand Montets, Pointe de Vue and Pylon trails. And the famous off-piste descent of the White Valley (Vallee Blanche), 20 km long, passing through the glacier, is not even recommended to overcome without an escort. However, there are also calm landscape slopes at the resort, even trails for beginners. The patriarch of winter sports is rightfully considered to be the town of Chamonix-Mont Blanc, located in the valley, the capital of the first Winter Olympic Games. Despite its name, the resort is considered one of the most liberal Alpine resorts, open to all lovers of winter outdoor activities.
Megeve resort is located just 33 km west of Chamonix, the development of which was greatly facilitated by Baron Rothschild at the time. The historic opening of the luxury hotel by him in 1921, perhaps, finally decided the fate of the mountain monastery for many decades, giving it charm, sophistication and aristocracy.
To the south of Mezhev, at a distance of about 80 km, begins the world's largest ski resort area Three Valleys (Trois Vallees); the total length of the slopes of the resorts included in it is a record 600 km for the Alps. As in Chamonix, there are surely tracks for everyone according to their abilities and athletic skills. Young people prefer to come to the mountainous Val Thorens, the five-level Courchevel has become, as you know, a favorite vacation spot for VIPs, the British like to stay in Meribel, and in Les Menuires and La Tania. For those who want to combine business with pleasure, the best place to relax is the sports and wellness Brides–Les-Bains, famous for its thermal springs.

Extravagance or extravagance?
Weekly rental of private chalets in the middle of the winter vacation period is quite expensive, its cost is measured in thousands and sometimes tens of thousands of euros per week. But thanks to the large areas of the Savoy chalets (150-200 sq. m.) and the presence of several bedrooms, it can perfectly accommodate several couples or a small company of 10-12 people.
For example, the weekly cost of renting a chalet 3 km from the center of Chamonix with an area of 200 sq. m. The price for 11 guests is 4,600 euros from the second third of February to the middle of March. At the same time, the annual occupancy of such facilities often reaches 95%, and the chalet itself is often booked for the winter period more than a year in advance. Note that this is the price from the direct landlord.
In the case of applying to the services of a Russian travel agency, an impressive margin should also be added, often two to three times higher than the cost of accommodation originally set by the owner. The same applies to accommodation in hotel apartments. For example, if a single room in the two-star hotel Les Cretes Blanches, located in Val d'Isere, costs 160 euros per night at the height of the season, then agencies charge 2095 euros for a week's stay in the same room. The difference for accommodation at the VIP resort of Courchevel is even more noticeable. In the five-star Annapurna Hotel, the cost of one night's accommodation in the Everest Suite with an area of 149 square meters, consisting of two double rooms, is 4430 euros during peak season. When renting from a Russian operator, you will have to pay 17,574 euros per week for each person staying in the room.
Therefore, those who are not beginners in self-organization of winter holidays prefer to stay in private chalets. And over time, after looking at both the terrain and the offers on the market, many of them decide to buy their own house in one of the foothill valleys.
For example, a chalet in the Savoyard style, located in the village of Argentiere, combining the whiteness of stone and the warmth of solid wood, with an area of 190 sq. m. m will cost the buyer 1.365 million euros. You will have to pay extra for the location and antiquity: a renovated 18th–century chalet in the very center of Chamonix is offered for sale for 2.2 million euros, and a similar chalet in the center of Meribel for 2.4 million euros. However, typical offers on the market are much more affordable than such luxury options. On average, apartments in resort areas cost about 5000-7000 euros per 1 sq. m, and private houses – about 4000-6000 euros per 1 sq. m.

Discounted purchases
I must say that the attractiveness of France, as one of the most visited countries in the world, is quite natural, since the state comprehensively stimulates and supports the tourism sector, including by attracting foreign capital. These include the Residence de Tourisme program, also known as leaseback: sale with subsequent lease. Its essence is simple: after purchasing a property, the buyer immediately transfers it to the management of the seller. A lease-management agreement is signed for the reverse transfer, according to which the buyer is guaranteed a certain annual income (amounting to 3-6%), and most importantly, the right to use the purchased property for personal purposes is retained for up to six weeks a year in different seasons.
The main advantages of the system are undeniable. When purchasing real estate under the leaseback scheme, the buyer is exempt from paying VAT amounting to 19.6%. Repayment of the loan is possible at the expense of income from renting it out, while the minimum amount of the first payment may be only 20% of the transaction. The management company pays taxes, covers all current expenses for the maintenance of the facility, including utility bills and depreciation charges. Upon expiration of the lease term, which is usually 9 years (the maximum period is limited to 20 years), the buyer becomes the sole owner, with unlimited right to dispose of the purchased object at his discretion.
Thus, the leaseback scheme is clearly aimed at buyers who would like to purchase a prestigious, highly competitive facility in the resort area, whose stay for the duration of their, for example, working capacity, would in any case be limited to the vacation period. But in the future, this property can potentially be considered as the main place of residence or a second home.
Typical objects purchased under this scheme are most often apartments. By the way, there are quite enough offers on the market: starting from one-room studios of 35 sq. m. m and ending with 150-200-meter luxury studio apartments of condominium hotels. The cost of such facilities in the most popular mountain resorts is about 8000 – 10,000 euros per 1 sq. m, and in resorts that are less well-known, prices are much lower - 4000-6000 euros per 1 sq. m
. Despite the crisis situation in the real estate markets as a whole, French tourist zones, according to experts, may well act as a reliable safe haven for investing money. While not promising as high a rise in property values as before, analysts still believe that prices for consistently high-demand tourist sites will rise at least in proportion to inflation. And if you add to this the proceeds from renting out real estate, then, indeed, you can be sure that it is difficult to find the best placement of capital, which also provides the opportunity for a wonderful holiday in accordance with your own choice, requests and lifestyle.

0
All articles by this country
All articles
Property in France
Discussion