_International Property Digest: Investing in new builds in the Alps
For many investors, new-build Alpine apartments hold great appeal. A mountain home offers winter skiing and summer hiking and biking, ideal for your own family holidays and appealing to active families looking to rent. Well-built new homes are generally easier to maintain and often come with built-in rental management, offering a hassle-free purchase for foreign owners and in France, they also come with attractive financial incentives.
Above: Swan Lodge near Meribel
Rental yields on most Alpine homes might not produce the sizeable returns seen in some lively cities but owners can expect between 1.5 to 2.5 per cent net in Switzerland and France unless they are using it themselves for huge amounts of time says Alex Koch de Gooreynd, Head of Knight Frank’s Swiss Network.
“This means that the rent should cover the running costs,” he explains. “In Switzerland, homes by Lake Geneva realistically only rent to holidaymakers for short stays in summer and under Swiss laws foreign buyers are not permitted to rent full time. Homes in ski resorts however work well for foreign owners who also want some personal use. They can maximise rental returns in peak season and stay there themselves in quieter periods.”
Developers of new properties are building especially for this market, including external storage areas for owners to stash their bikes and skis as well as lockable cupboards inside the apartment for personal items. The best schemes also offer in-house rental management and a concierge who will prepare your property for your arrival, fill your fridge with food and wine, make the beds and allow your holiday to start the minute you arrive. For today’s ever busier lifestyle, this is a sensible way to maximise enjoyment of a home in the Alps.
New-build homes in the Swiss Alps
A short walk from the ski lifts in pretty Grimentz, the first phase of apartments at Les Rahâs have been fully managed by an established and efficient Swiss company for three years, demonstrating solid returns and excellent ratings. The second phase of 10 two to five-bedroom homes is now for sale priced from CHF 750,000.
Above: Apartment development at Les Rahâs
Also available to non-Swiss buyers, Sports Club Residences in Crans Montana is a project due for completion in Spring 2020 with a good spa and wellness area. These homes have the shops, restaurants and ski lifts on the doorstep – a rarity in this spread-out resort – and as the spa is also open to the public, service charges will be reasonable.
Above: CGI of Sports Club Residences in Crans Montana
New-build homes in the French Alps
In France the financial advantages make new-build homes especially attractive. Pre-scheduled payments over the course of the build offer financial flexibility, important to many buyers, and the purchase cost for new builds is reduced from 7.5 per cent to 2.5 per cent of the sales price. Then there is the significant saving from the VAT rebate, 20 per cent off the total cost of all new-build homes subject to renting it for 20 years
“Buyers looking to spend between €2,000,000 and €4,000,000 should consider the vast Three Valleys, where they will find a good range of options in the resorts of Meribel , Saint-Martin-de-Belleville and Courchevel,” says Roddy Aris, Partner in charge of the French Alps. “In Le Raffort, Meribel a beautifully finished four-bedroom apartment, one of three in a brand new chalet with direct access to the lifts is €1,500,000. A contemporary five-bedroom apartment in Swan Lodge near the centre of Meribel is €2,650,000.”
Above: Swan Lodge in Meribel
There is less new-build choice in Chamonix and Megève but one project to consider is an off-plan, ski-in-and-out development in the Rochebrune area of Megève where four-bedroom apartments with wonderful alpine views start from €1,496,400. Homes come with wide balconies, individual storage space and underground parking.
Above: Four-bedroom apartments in Megève
For further information on Knight Frank’s portfolio of Alpine homes contact our International Team.