Where are Property Investors Putting their Money in 2017?
The mountains, that’s where! And whilst cities, as always, are a major drawcard for property investment, the ski resorts of the world are where the rest of the money is going. With property prices quite weak at the end of 2016 thanks to political volatility and a falling Pound, there was a sense of opportunism despite market uncertainties.
As a lifestyle investment, Alpine resorts will always draw buyers from all over the world, and at the moment, Switzerland in particular is benefitting from growing interest from China. Buyers from the USA, Scandinavia and Australia are boosting the French property market, and the domestic demand is increasing steadily thanks to historically low interest rates. Whilst property prices are low right now, they are steadily growing and the Notaires de France are predicting property price increases of 2-3%. Property investment firm Athena Advisors are predicting an increase in 20-year fixed rate mortgages in the new year, and suggest that buyers should make the most of the 0.4% rate that is available at the moment.
As Brexit becomes clearer and the Pound strengthens, we can expect British investors to start putting their money back into the EU ski property market, further driving up housing prices.
With low interest rates, record low property prices and a positive growth forecast, now is the time to buy in alpine towns. Property giants Pierre et Vacances are selling apartments in their most recent development, L’Hevana in central Meribel. The luxury apartments are fully managed, have recoverable VAT, provide rental income and also allow the owners several weeks use during the winter and summer seasons and are a great investment for those looking to buy.
There is no time to buy like the present. Growing interest from international & domestic markets, low interest rates and positive growth forecasts mean the European Alps will always be a solid investment.