The Compagnie des Alpes Group has signed
an agreement with Eurostar to relaunch the
direct rail service from London St. Pancras
to the Tarentaise Valley.
The Travelski Express will operate every
weekend throughout the 2021/2022
season, departing from St. Pancras on a
Friday night with non stop trains to Moutiers
and Bourg-Saint- Maurice. Special buses are
also being chartered, linking passengers
with a further 12 resorts in Savoie, HauteSavoie
and the Hautes-Alpes (La Plagne,
Les Arcs, Peisey-Vallandry, Tignes and Val -d'Isère,
Méribel, Les Menuires, Samoëns, Sixt-Ferà-Cheval,
Morillon, Flaine, Serre Chevalier
Vallée).
UK customers will buy a package including
travel, accommodation and ski passes. The
train will have a café/bar, but no sleeping
compartments, and the journey time will
be around nine and a half hours. Trains
start on December 26th and finish on
April 9th 2022.
To understand the local market we should first look at
the national one. The latest figures from the Notaires
de France tell us that in the last 12 months there were
1,130,000 transactions across the country, the highest
number this millennium. They note that this figure is all
the more remarkable as it includes the period that the
country was in lockdown. In addition, they note that
transactions are increasing "in favour of a new typology
of properties and toward geographical areas away from
major cities". Price rises are slowing for apartments (5%
increase, compared to 6.3%), whilst price rises for houses
continues to rise (6.6% compared to 6.5%).
One of the key factors here is the continued low cost of
borrowing. The Notaires tell us that "the average interest
rate for new home loans reached a new low of 1.15% in
April 2021, and thus helps to sustain dynamic transaction
volumes". Bullishly, they go on to say "An increase in rates
would not break market dynamism: in fact, borrowers
are aware that they are currently exceptionally low; no
indicator suggests a sharp rise, so a reasonable increase in
rates would not significantly alter the purchaserborrowers'
cash-flow effort".
The second key factor, as stated earlier, is the limited
amount of stock available on the market. This is particularly
the case in the Alps, where a restriction in new supply,
as building permits remain hard to obtain. Estate agents
are finding it increasingly hard to obtain new mandates
and vendors are (wisely) choosing those who can market
to both a local and international audience. Those agents
who can help expediate sales (by using virtual tours,
e-mandates and electronic signatures) are reaping the
rewards.
With rising demand and limited supply, rental yields
should be protected over the medium and long terms.
We are continuing to see increasing enquiry levels for
newbuilds, which can offer a 20% VAT rebate and reduced
transfer tax. Indeed, Leggett Immobilier is now running
continual professional development training specifically
EXECUTIVE SUMMARY
Other key market drivers
on the newbuild market - even though they have been
around in the Alps for many years, we see them as a big
growth market.
Developers and architects seem to have been quick to
realise that demand has shifted and that buyers are now
looking for lighter space with balconies, home offices and
outside space much in demand.
The new Travelski Express
brings London closer to a
dozen French ski resorts.