"The Northern Alps see the highest
price rises of any area in France"
shouts the headline in Le Parisien
(26/2/2021). The article goes on to
quote research by INSEE, showing
an annual rise of 7%, which was
even higher than the Île de France
(6.4%).
This report goes beyond the
headlines and looks at prices and
trends throughout the region.
For the sake of consistency all
prices quoted come direct from
the Notaires de France, whilst
all commentary comes from our
team of 50+ local agents, who are
strategically spread to provide
coverage across the region. As
you will read, the world may have
changed but the appeal of the
French Alps is stronger than ever.
To understand the local market we should begin
with a national overview. The Notaires report
that the market in 2020 was "very resilient, with
reassuring momentum….the year on year volume
of transactions once again crossed the symbolic
threshold of 1m+ transactions, down only 4%
compared to the previous year". This is a remarkable
figure seeing as the country experienced two long
periods of confinement and international travel
bans. The Notaires also highlight the growth
in lending for new homes (which is, of course,
highly pertinent for the Alps market). "Banks have
continued to play their solvency role as confirmed
by the steady growth in new home lending at a rate
of +5.5% in October 2020….this trend is expected
to continue in 2021, driven initially by interest rates
remaining very low and the French High Council for
Financial Stability (HCSF) settling on less restrictive
adjustments in terms of granting property loans,
particularly for first time buyers".
This easing of lending criteria is applicable to French
residents. Conversely, buyers from the UK are seeing
a tightening in lending for French mortgages. The
Notaires report that there has been a reduction
in non-resident foreign investors across France
which is (understandably given travel restrictions)
now close to its lowest level in 10 years. The Alps
have been cushioned from this impact by the fact
that the resorts are, historically, cosmopolitan and
international in nature - this forms part of their raw
appeal. International buyers are seeking fresh air
and open spaces - both of which the French Alps
have in abundance.
The French property
market is fl ying
EXECUTIVE SUMMARY