British buyers forward buying
currency, while Americans cash in.
Exchange rates play a central role in purchase plans for international
buyers. The French ski market is possibly the most diverse in the
world, which gives it a unique underlying strength, and you can
track overseas demand by overlaying the strength of the euro with
other currencies.
Leading London FX brokers Lumon recently reported a 30% increase
in the utilisation of forward buying contracts, as the sector braced for
long-term volatility. This involves utilising long-term contracts that
lock currency conversions away at today's rate for payments in the
future. Their associate director, Jonathan Watson, told us "Few things
are as accurate as observing the actual behaviour of FX traders. They
monitor developments very closely and have tools at their disposal
that help them make risk minimising decisions quickly".
Meanwhile, across the Atlantic, Americans have been using the
strong dollar to cash in on bargains in the French Alps. At the time
of writing one dollar buys 1.04 euros, whilst at the start of the year
the rate was around 87 centimes. Meaning that if your budget is say
800,000 dollars, you now have an extra 136,000 euros to redecorate
and furnish your property - or to buy a larger property in a better
location. Leggett has seen a sharp increase in US buyers this year, a
trend that is sure to be reflected amongst other agencies who work
with international clients.
Current trends in the ski market
First let's put things into context.
French households are protected
from soaring energy prices better
than any others in Europe. Gas prices
have been frozen at 2021 levels, while
electricity price rises are capped at
4%. Going forward, the maximum
rise for both in 2023 is capped at 15%.
At the time of writing the Banque de
France has forecast that the currently
rising rate of inflation will peak at
6%, then stabilise at 5% within the
05
www.leggettfrance.com
next 12 months, before falling back
to 3% in the next three to five years.
Prime Minister Elisabeth Borne
has asked businesses to reduce
their energy consumption by 10%
this winter, a national target that
President Macron has set for 2024.