It is that time of year again. The webcams are showing snow on La Face in Val d’Isère, while news is pouring in from Colorado of sensational early season conditions. All over the country, British winter sportsmen and women are eagerly anticipating their first high-speed descent on snowboard or skis.
This year, however, increasing numbers of people are not only planning to ski on holiday but are also looking to buy a permanent base in the mountains. It’s not difficult to understand why. Skiing is just the start of it: in the summer, there’s golf, mountain biking, whitewater rafting, rock climbing and parapenting. For anyone with a bit of get-up-and-go, it’s an intoxicating prospect.
The only problem is: where do you buy? Acres of newsprint have been devoted to “new” destinations such as Bulgaria, Slovakia and Quebec since last season’s snows melted (we will look at all three, plus several even more exotic places in part two of this guide next week), but most of us still prefer to ski in tried and tested destinations in France, Switzerland, Austria and Italy. And the same goes for where we choose to buy. Remember, though, that not all Alpine resorts are the same. Nor are all of them snow-sure: the effects of global warming are already being felt in the mountains, and the only way to insure yourself against it is to aim high — ideally, choose a resort with plenty of skiing above 2,000 metres (6,562ft).
If you are expecting your property to make money — or at least to pay its way — then allow me to sound a note of caution. A modest 3%-4% is a good rental return on Alpine property these days; if you want to get more than that, you need an A-grade location. That means aiming for the big-name resorts, or perhaps neighbouring villages that link into their lift systems or are a short drive from their slopes.
That’s probably also the best way to ensure capital growth. Over the past five years, the prices of off-plan flats in the best French resorts have risen by 30%-40%, while those of chalets have nearly doubled. In the best new developments in Switzerland and Austria, both relatively new destinations for British buyers, prices have been rising by an annual 10%-15%. Italy, too, is on a roll.
France
The first rule of buying ski properties in France is not to set your heart on a chalet in the most famous resorts, such as Val d’Isère or Courchevel 1850, unless your surname is Abramovich. “Such is the level of demand here that there isn’t really a market any more — not in the conventional sense,” says Andy Sturt, a developer in Val d’Isère. “Nothing is advertised and everything is decided behind closed doors.”
Sturt, who lets out his properties through his own tour operators, VIP and Snowline, says the price of chalets in Val d’Isère has almost doubled in the past five years to £10,000 per square metre — close to London levels. In Courchevel, it’s twice as much again. “That means about £6m-£7m a chalet,” he says.
Fortunately, for buyers of more modest means, there are alternatives. Intrawest, a Canadian developer, created a stir recently when it built an entirely new village in Les Arcs. Composed of flats rather than chalets, Arc 1950 Le Village has been a big success — the final phase is nearly complete and all but 10 of its 700 units have been sold. Prices start at £205,000 for a two-bedder.
One of the reasons the scheme has been a hit is because Intrawest offers flats under the leaseback formula, which has become increasingly common in France. Purchasers lease their property back to the company, which maintains it and takes care of holiday lets, paying a guaranteed rental income. You can also claim back the Vat, a saving of up to 19.6%.
Another promising trend is the redevelopment of existing apartment blocks at A-list resorts. Most are home to at least one concrete carbuncle thrown up in the 1960s or 1970s, and the owners have realised they are sitting on gold mines. The refurbishment of Residence La Daille in Val d’Isère (with Erna Low Property, 020 7590 1624, www.ernalowproperty.co.uk; studios from £88,000) is just the start of this phenomenon. Expect more to follow in resorts such as Méribel and Courchevel 1650 and 1850. For many, such developments will provide the last chance to buy into these resorts at anything like affordable prices.
Switzerland
Switzerland was once a virtual no-go zone for British buyers because of high prices and a raft of restrictions on property purchases by foreigners. The rules have been relaxed since 2002, and it is now possible to buy in much (but not all) of the cantons of Vaud and Valais, where many of the best-known resorts lie — although there are still administrative hoops to pass through. Complete liberalisation of the market is expected in 2010.
Verbier, with its challenging chutes, wide-open powder fields and knee- busting bumps, is the most tempting of the resorts available, especially for advanced and expert skiers. But prices are nearly as high as in Val d’Isère. In one new scheme, Les Quatres Trèfles (marketed by Chesterton, 020 7201 2070, www.chesterton.co.uk), the cheapest property — a large, four-bedroom chalet-flat — is for sale for £1.76m.
One solution is to look at the edges of ski areas, away from the main resort. There have been high-quality new developments in the villages of Les Collons, Nendaz and Veysonnaz, south of Sion. In Nendaz, at Mer de Glace (with Savills, 020 7016 3740, www.savills.co.uk/abroad), three-bedroom flats start at £380,000. This is much cheaper than in Verbier, but for good reason: you will still need to go to Verbier for the best skiing, restaurants and nightlife.
Also in the Verbier area, it is worth keeping an eye on Le Châble and Bruson. Intrawest is planning to build another Arc 1950-style village nearby, with improved lift access to the main slopes, but the proposal is being contested by environmentalists. If the development does receive planning permission, property prices in these two villages are likely to soar.
Another interesting possibility is the village of Grimentz. It offers only 31 miles of groomed pistes, but is cute, under-developed and within easy striking distance of Verbier. As such, it has the potential to become the next Ste-Foy en Tarantaise, the tiny, four-lift backwater next to Val d’Isère that has become a hit with people looking for a quiet base near the big resorts. Pure (020 7331 4500, www.pureintl.com) is marketing the Les Flives development; studio flats in Phase II are expected to sell for £295,000.
Austria
Feeling more Sound of Music than Ski Sunday? Then Austria is the place for you, although there are some Swiss-style complications. In the Tyrol, home to some of the country’s best-known resorts, such as St Anton and Kitzbühel, for example, both Austrians and foreigners alike are barred from owning second homes (even though a few people and agents manage to circumvent the ban).
If you want to stick to the rules, then you are confined to the softer landscapes and gentler slopes further east. This is not such a bad thing. The season tends to be shorter in these low-altitude resorts (you can forget about skiing in April), but from December to February there is great intermediate-level carving to be done in chocolate-box surroundings. Come summer, it will be hard not to break spontaneously into song.
Carinthia is the province with the lightest restrictions on the ownership of second homes. Ironic, really, given that Jörg Haider, the controversial rightwinger, is governor. Many of its ski areas are little-known, so if you want to generate rental income, stick to Nassfeld, which has the highest profile and the largest network of lifts in the region, or the spa town-cum-ski resort of Bad Kleinkirchheim. Euroburo (www. euroburolimited.co.uk) is offering one-bedroom flats at Hermagor, near Nassfeld, for £57,000.
In Salzburgerland (served well by flights into Salzburg), there is a growing number of leaseback properties on offer — no surprise, given that it is a legal requirement that second homes must be made available for holiday lets. Investors in Property (020 8905 5511, www.investorsinproperty.com) is marketing one development in Alpendorf, part of the sprawling Dachstein West ski area, where three-bedroom chalets start at about £154,000. It will soon launch another project near the Kaprun glacier, where the ski season is much longer.
Italy
On the face of it, Italy is a no-brainer. Home to some of the best skiing, the most stunning scenery and the cosiest mountain villages, it is perhaps the least exploited of the Big Four Alpine nations. There are two drawbacks, though: the snow on the south side of the Alps is less reliable, and the season is shorter. Many resorts have invested heavily in snow- making facilities, though, and there are some gorgeous locations on offer.
Champoluc is one of the best. Easily reached from both Turin and Geneva airports, it nestles in a long high dramatic valley, close to both the Matterhorn and the Monte Rosa. Crucially, it also links into one of Italy’s most exciting ski areas, Monterosa, and is steadily developing a higher profile in the international ski community. Local agent AEV (00 39 0125 307 960, www.caseonline.it/aev) has a two-bedroom flat for sale for £240,000.
Another interesting possibility is Pila. Although not big enough for a week-long holiday, it offers such high-quality skiing that the British winter sports industry has been testing equipment there. Admittedly, this is an unfashionable resort and home to some pretty ugly buildings, but two-bedroom flats are on offer for just £117,000 with Agenzia San Grato (00 39 016 532 956, www.agenziasangrato.com), so who cares what they say back home? You’ll be too busy tearing about in a blaze of bright, white glory to care.
On the market
On the market at £4m, this chalet in the French resort of Val d’Isère has eight bedrooms, a cinema room, spa bath and ski room. It is for sale with Prestige Property Group, 01935 817 188, www.prestigeproperty.co.uk
One of 15 units being built in the Swiss village of Les Collons, this five-bedroom chalet with a glass wall on two sides of one floor is for sale for £717,000 with Investors in Property, 020 8905 5511, www.investorsinproperty.com
A two-minute walk from the centre of Bad Kleinkirchheim in Austria, this newly built, 111sq m three-bedroom duplex has fine mountain views. It is for sale for £233,000 with Investors in Property, 020 8905 5511, www.investorsinproperty.com
This 70sq m, two-bedroom flat in the centre of Champoluc in Italy is being sold fully furnished. It is only 400m from the local ski lift and is on the market for £240,000 with AEV Immobiliare, 00 39 0125 307 960, www.caseonline.it/aev
Next week: Does the falling dollar mean it’s time to buy in America?
