Tignes property boom?

News that property prices in the French Alps have risen, back to the levels achieved in 2007, is sparking a resurgence in alpine development. This may affect 2011/12, and onwards, winter holiday prices, with owners demanding higher rents from the ski holiday companies. In the years since 2007 the credit crunch hit the alpine property sector particularly hard, but things are changing.

The MGM Group have projects in various stages of development throughout the French Alps, with a major push expected after the 2010/11 season closes.Richard Dean of MGM told property wire that this resurgence was the result of several different factors. The approval of a number of their proposals by the (often notoriously slow) French planning system had triggered the next phase in MGMs development process. The rising price of property was also a major factor.

These particular developments are targeted at ski resorts such as Tignes, St Martin de Belleville, Samoens, Chatel, Valmorel and Les Carroz. The emphasis in all of these projects is on sustainability and energy efficiency, in line with the Haute Qualité Environmental.

If these and similar developments don’t stem the rapid rise in property prices, winter 2011/12 ski holidays may see quite a price rise. As chalet and apartment owners see the value of their properties rising they may demand higher rents, a cost which Ski tour operators may well be forced to pass on to the holiday maker.