Property sales and prices hold up in the French Alps

While UK house prices continued to drop in a near static market at the start of this year, the London office of leading French Alpine developer The MGM Group saw sales holding up. Although slightly down on last year’s figures, the group has surpassed its sales target for the five-month winter season.

MGM’s London-based sales consultant Richard Deans says the company achieved more than 200 off-plan sales of ski properties without having to reduce prices by more than five to ten per cent.

“Within eight weeks of announcing plans for 40 new ski-in, ski-out homes in Les Arcs, we had sold one-third of the properties to British and French investors,” he said. “At Bisanne 1500, half of the 12 apartments in our proposed new development Le Chalet Ameria also were sold off-plan. Such immediate interest remains typical, despite market conditions, with off-plan sales continuing to be achieved as much as a year ahead of the completion of new developments.”

This is the norm for MGM so, when it started the year by announcing that it is to build 12 new apartments at Les Saisies, buyers snapped up two of them immediately.

Says Richard: “Buy-to-let investors are favouring leaseback purchases in residences de tourisme because they can offer guaranteed returns of five per cent – rather more than the interest being offered on bank deposits currently. Furthermore investors in leaseback properties can off-set their rental income against tax – a benefit not available when letting a property bought outright.

“Buyer interest in property in the French Alps remains strong despite the poor exchange rates. They have had some effect on the market but the calibre of MGM’s schemes means that we have continued to sell properties throughout the downturn and we are confident about our long-term future.”

Richard says MGM is looking beyond the gloom of the current year and that is why, having sold off-plan more than half of the properties planned within its latest residential scheme in Annecy – the historic lakeside town in the foothills of the Alps – the company has brought forward the start date for building work on the site where 18 new homes are being constructed a few minutes walk from the town centre.

Buoyed by the success of sales and the progress on construction work which means that five of its brand new residences de tourisme will open for business prior to Christmas this year, MGM is preparing to announce plans for four more new developments which it expects to start building in the French Alps early next year. They will be in St Martin de Belleville, Bisanne and Alpe d’Huez. The company also will build what it describes as ‘a new generation of affordable ski properties’ in Val Cenis, a new region for MGM.

The five new residences opening in December include Les Chalets de Jouvence at Les Carroz d’Araches, Le Telemark at Tignes le Lac and Le Coeur d’Or in Bourg St Maurice. The others are La Reine des Pres in Samoens and Le Hameau du Rocher Blanc in Serre Chevalier.

A few properties are still available sale in each of these residences as well as MGM schemes currently under construction in:

Les Arcs where L’Iseran, a traditionally-styled chalet, will contain 40 spacious apartments ranging in size from studio flats to five-bedroom apartments. It is located 300 metres from the centre of Arcs 1800 which, with its spectacular panoramic views, is said the be ‘the most sought after area in the French Alps.’ Available for outright purchase at prices starting at €125,000, the apartments will have fitted kitchens and bathrooms, pine internal finishes and tiled and parquet floors. Each home comes with cellar storage, a ski locker and underground parking. Regulation standards for acoustic and thermal insulation will be exceeded. A very unusual feature for a ski property development for outright purchase is the inclusion of an indoor swimming pool for use by owners.

Bisanne 1500, a small hamlet six kilometres from the family-friendly resort of Les Saisies where Le Chalet Ameria comprises 12 apartments for outright purchase. Located next to the ski slopes and a five-minute walk from village shops and cafes, the properties range in size from two-bedroom apartments to a three-bedroom duplex. They have floor areas of between 42 and 88 sq metres. Off-plan prices start at €222,000. Standard facilities include secure cellar store and ski lockers. Most of the apartments come with underground parking spaces.

Annecy where La Villa d’Artagnan is a contemporary-style development of 18 new homes less than one minute’s walk from the shore of Lake Annecy. They range in size from a one-bedroom apartment priced at €388,000 to a four-bedroom duplex property on sale at €1,211,000. Prices include under-floor heating, an underground garage and cellar storage space.

For more information, visit mgm-constructeur.com