Global warming, ban on rental of thermal sieves… Clouds are gathering over mountain real estate. Which, however, does not lack the resources to preserve its profitability.
© Capital
– “It is in high altitude resorts, such as Tignes and Val Thorens, with a long-term snow guarantee, that property prices are increasing most sharply,” recognizes Benjamin Berger, general manager of Cimalpes.
-
To safeguard
Saved
Receive alerts Real estate investment
February 8, 15 and 22, 2025. There is no doubt that these three dates have long been on the agenda of ski enthusiasts. They will kick off the school holidays winter for zones B, C and A, generally the best time of year for ski due to the quality of the snow. “The winter season has started quite well”indicates to Capital Benjamin Berger, general manager of Cimalpes, specialist in sales and rental of apartments and chalets in the Alps. It therefore seems to follow in the wake of the 2023/2024 season, which resulted in an increase of 3.5 points in the bed occupancy rate, to 83%, for all types of accommodation, according to the National Association of Mountain Resort Mayors.
This should reassure you about the rental demand if you are tempted by a real estate investment in the mountains. But think twice before taking action, particularly because of global warming. “It is in high altitude resorts, such as Tignes and Val Thorens, with a long-term snow guarantee, that property prices increase most sharply”recognizes Benjamin Berger. Prices that exceed 10,500 euros per square meter in Val Thorens, for an apartment of less than three bedrooms, old but renovated, i.e. more than the average price in Paris ! And they soar beyond 15,500 euros per square meter in Courchevel 1850.
Ski resorts forced to reinvent themselves
Prices are a little softer in “carryover markets” like La Rosière and Les Saisies, with rates of 6,500 euros and 7,500 euros per square meter, respectively. They even drop to 3,500 euros per square meter in Saint-Gervais, with the counterpart of more uncertain snow cover. Now also focusing on the wellness and cultural tourismwith renovated thermal baths and its baroque heritage, Saint-Gervais is one of the ski resorts that climate change is forcing to reinvent itself to continue to attract crowds.
A profitable strategy: “The tourist influx continues in these mid-mountain resorts. The departure of part of the clientele towards high altitude resorts, to be sure of skiing, is compensated by new clients, who do not come only for the skiing”assures Benjamin Berger. Customers who find happiness in these stations “freeing themselves from all skiing and also becoming countryside destinationswhere we go mountain biking, for example, and where shops are now open all year round”adds the manager.
Real estate: here is the most expensive ski resort in France
Mountain real estate prices are holding up
As a result, even in these resorts where snow is starting to become rare, “property prices are not falling”notes the general director of Cimalpes. The real estate crisis which has lasted for two and a half years, caused by the surge in credit rates, still above 3%, has not changed anything. While the price of old housing has fallen by almost 1% in France in 2024, over one year, it has increased by 2.5% in ski resortsaccording to the National Real Estate Federation (Fnaim). This brings their increase to 26.2% over the last five years, more than double the average price increase in the country.
If mountain real estate prices are so resilient, it is because it is a market of second homeswhere buyers, often with substantial savings, are less dependent on credit than first-time buyers. As for sellers, they are all the less inclined to lower their prices as they are generally in no hurry to sell, receiving rental income anyway. And they know they are in a position of strength, given the low number of properties for sale in the mountainsscarcity of land requires: “At the height of the season, there are a maximum of 30,000 beds in major world-famous resorts”underlines Benjamin Berger.
Rental investment: the most profitable ski resorts to buy, in each mountain range
Lots of thermal strainers at altitude
As you will have understood, the entry ticket to investing in mountain real estate is not particularly cheap, depending on the resort, but the risk of capital loss on resale is not very high. And the demand for rentals is there. “Real estate investment in the mountains remains interesting”affirms Benjamin Berger, citing a average yield “of the order of 3%higher than rental profitability on the coast”. While recognizing that “this is less than what can be achieved with a “pure investment” but this is normal because, for an investor, the interest in buying a property in a ski resort also lies in the fact of being able to spend vacations there and, therefore, not rent it 365 days a year”.
A downside, the very recent so-called “anti-Airbnb” law extends the ban on the rental of thermal strainers to furnished tourist accommodation. If you buy accommodation in the mountains in the coming months to rent it, its energy performance diagnosis (DPE) must be greater than G. Then to F on January 1, 2028, and to E in 2034. Existing rentals have of 10 years to comply with this schedule. A major challenge in ski resorts, where 38% of accommodation is rated F or G, compared to a national average of 21%, according to Fnaim. “We need to educate owners”admits Benjamin Berger, while ensuring “help them put together their work files energy renovation». With, increasingly, the support of local authorities strengthening their support for the energy renovation of leisure real estate, like Tignes.
Receive our latest news
Every week your appointment with real estate news.