Even though borrowing rates have risen sharply, competition between buyers is less fierce. A good opportunity to buy, particularly in Bourg-Saint-Maurice, for those with cash to invest.
Although it has its own ski area (Les Arcs), Bourg-Saint-Maurice is also around thirty minutes from many other resorts: La Rosière, Tignes, Val d'Isère, Villaroger, etc. Centrally located, the town has plenty to attract buyers looking for a pied-à-terre. Especially as it is served by a TGV station, which handles over 400,000 passengers a year. Bourg-Saint-Maurice, which has just over 7,000 permanent residents, has direct links to Paris, Lyon, Brussels and even London, via Thalys and Eurostar, during the winter season.
A calmer market
"The town attracts buyers of both primary and secondary residences, and as many French as foreigners," explains Esther Ribot, property negotiator at Foncia in Bourg-Saint-Maurice. The property stock is made up of 85% flats and 15% chalets or houses. "Older properties cost around €4,000 per m² for a flat and €3,500 per m² for a house. The overall budget, excluding transfer costs, is around €100,000 for a studio, €170,000 for a two-bedroom and €260,000 for a three-bedroom," she estimates.
In the new-build sector, prices are rising to over €5,000 per m² for all types of property, but developments are rare. However, two are currently on the market and two others are under consideration.
In recent years, the market has seen a number of sharp price rises. "But for the last few months, things have been much calmer. There's less of a rush to buy a primary residence," observes Esther Ribot. The rise in lending rates, which followed the surge in purchase prices, has dampened the hopes of many households of becoming homeowners.
The opportunity to negotiate
With competition between buyers less fierce, the outlook is brighter for rental investors and second-home buyers. "They are less affected by the rise in borrowing rates and have cash to invest," she adds. As a result, "impulse" purchases at the right price are becoming rarer: negotiations of between 5% and 8% are now commonplace. And even though mortgage rates are comfortably over 4%, the possibility of renegotiating your loan in a few years' time cannot be ruled out if rates fall.
Bourg-Saint-Maurice offers an excellent compromise to satisfy your desire for the mountains, at a reasonable price. The price of a flat in Bourg-Saint-Maurice is half that of Tignes (€8,100 per m² median according to the Notaires de France) and three times less than that of Val d'Isère (€12,160 per m² median).
Between 5 and 7% gross return on a standard lease
Given these prices, rental investors can expect a gross return of between 5% and 7% on a standard lease. "The returns are much higher for seasonal or weekly lettings. For example, a one-bedroom apartment rented for €800 a month under a traditional lease rents for €800 a week in the winter," explains Esther Ribot. But you have to be able to manage all the logistics involved: welcoming guests, cleaning, maintenance, fitting out the accommodation, etc.
Translated with www.DeepL.com/Translator (free version)
Comments