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Alpine property developments
Despite climatologists’ claims that the Alps is experiencing its warmest period for 1,300 years, property development continues apace in the Alps, writes Jo-ann Hodgson
Climatologists have warned that the future of ski resorts is looking warm and snow-less due to the increasingly evident affects of global warming. Between 1985 and 2000, the Alps lost 22 per cent of their glacial surface area. The exceptional heat experienced in the summer of 2003 meant that a further 5 to 10 per cent of the remaining ice melted. Leading glaciologist Michael Kemp has warned that with a 3C rise in summer air temperatures the Alps could lose 80 per cent of the remaining glaciers.
Changing conditions will therefore drive buyers and indeed skiers to resorts with more consistent snow records – typically those at higher altitude, and potentially leave Alpine property owners renting their winter homes for fewer weeks per annum than they are used to.
Professor Hans Elsasser, an economic geographer at Zurich University, told a British newspaper: "So far we haven't yet seen a big change in the tourism industry, but there has been a clear impact on natural snow cover in winter. Generally speaking, in lower regions in recent years, the early season has not had snow. In the future, destinations at higher altitudes will become more popular and more expensive."
This news hasn't deterred property developers from targeting the Alpine slopes, though. For example, French developer MGM is building five Savoyard-style chalets comprising a total of 80 two-bedroom apartments in a wooded corner of the Paradis skiing area, which boasts 420 kilometres of piste. Las Alpagnes de Champagny is on schedule for completion by the end of the year in time for the next ski season with properties starting at 275,000 euros for a two-bedroom apartment with a floor area of 50 square metres.
Alpine Homes has also entered the French ski market, having established themselves first in Switzerland. Balcons de Megeve will comprise of 17 apartments, ranging from three-to-four bedroom units, with up to 1,437 square metres of space. Prices range from £1,100,000 to £1,600,000, with the services of an interior designer and car parking space available at an additional cost.
As the summer season in key skiing resorts extends into cooler months, revenue throughout this period is becoming increasingly important for Alpine property owners. "Artificial snow is a solution for the next five or perhaps ten years but it's not a long-term solution," said Elsasser. "Today, as we speak, the weather is too warm and no one can make snow."
Les Alpagnes de Champagny marks a departure from weather-sensitive holidaying by including facilities such as an indoor pool, sauna and jacuzzi, steam and fitness rooms and a variety of shops and restaurants. Alpine Homes development will also be built in a resort which has traditionally had an active summer season. Summer sledging, swimming pools and riding are amongst the many activities on offer. Capitalising on rental income from elusive winter months where snow is fresh and plentiful is also becoming a more urgent priority for Alpine property owners.
The leaseback scheme, introduced by the French government to make properties available for the tourist industry, can take much of the stress of renting away from Alpine property owners. The scheme, known in France as Residence de Tourisme, enables purchasers to buy a freehold property and then lease it back to an approved management company to let for an 11-year term. There are two options available. Lease with Rental Income enables the buyer to profit from rental income whilst paying no VAT and retaining three weeks use of the property each year. Lease with Price Reduction is the better option for French Alpine property buyers looking primarily for a holiday home. The lease enables the buyer to purchase the property at a 30 per cent reduced price and have use of the property for six weeks of the year without receiving rental income. Both options allow the owners to sell at any time and, at the end of the 11-year term, choose to enter into a new lease agreement or opt out of the scheme. The Leaseback scheme is available at Les Alpagnes de Champagny.
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For further information:
MGM French Properties
Alpine Homes