Ski chalets glut sees prices fall by a third

Published 22nd Dec 2008

A plethora of ski chalets for sale across France and Switzerland has put serious downward pressure on prices, with some properties now selling for nearly a third less than last year.

Snow conditions across the Alps have not been this good for a decade, say resorts, but hard economic times are forcing many chalet owners to consider selling up.

“Appetite and ability to buy has diminished,” admits Nigel Hindle at buying agent Property Vision France, who says prices for some ski chalets have fallen by about 25 per cent from the market’s peak. “A chalet in Chamonix that would have been agreed at €3m (£2.8m) last year can be bought for €2.2m this year,” he says.

In the French Alpine resort Arc 1950, a studio valued at €150,000 this time last year is now on offer for €120,000, according to ski property specialist Erna Low.

Property developers have also been cutting prices and offering deal sweeteners to buyers. Savills Alpine Homes is offering a 4x4 car to buyers of luxury apartments such as the five-bedroom Le Hameau des Pistes in Veysonnaz, Switzerland, for sale from £950,000 and available for purchase by foreigners.

But not every resort has witnessed the same price falls. The strictly limited availability of building land in certain French and Swiss resorts, coupled with restrictions on the number and type of properties that foreigners can buy in Switzerland has kept prices in areas such as Kaprun and Zell am See at a premium.

“Prices for all properties in resorts such as the Alps are not falling through the floor in the same way as housing markets in the UK have,” according to Jeremy Rollason, managing director of Alpine Homes. “But there is downward pressure even on these markets.”

Those looking for bargains are advised to explore smaller resorts such as Flaine in France or Portes du Soleil, rather than the more established areas such as Chamonix.

Nevertheless, even in the most popular resorts, such as Courchevel and Val d’Isere, sellers are willing to negotiate with buyers and are accepting small discounts for those offering cash, says Matt Hodder at Knight Frank.

The poor performance of sterling against the euro and Swiss francs is, however, acting as a drag on these price reductions.

A €200,000 chalet would have cost £139,177 last October, but this month will set you back £189,395.

Some sellers are adjusting their prices to take this into account.

Mark Bodega, director at foreign exchange specialists HiFX, suggests buyers point out to sellers who are repatriating euros to pounds that they can afford to cut their euro asking price and still make gains because of the movements in currency.

Alternatively, he says, in the spirit of negotiation, the buyer could agree to split the difference with the vendor in order to clinch the deal.

Source: ' FT '

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