Sports
French Alps ski property market reviving thanks to low mortgages and new infrastructure
The French ski property market is recovering with new build apartments, rather than chalets, are leading the way and interest boosted by new infrastructure projects, new research shows. Those choosing to buy in key Alpine resorts will also find far more facilities available such as the €36 million mini-resort Mille8 in Les Arcs, a family friendly resort within a resort with new nursery slopes, tobogganing runs, a swimming pool, spa, gym and Courchevel's €63 million waterpark and spa Aquamotion. La Compagnie du Mont Blanc announced recently that it would spend €477 million over 40 years on new lifts and pistes in Chamonix while Val d’Isère has just spent €16 million renewing lifts, pistes and restaurants on La Tête de Solaise, immediately above the town. Rock bottom Euro mortgage rates are another key factors behind the recovery, according to the French Alps Property Report from Erna Low Property. It points out that it is now possible to get a 15 year fixed rate repayment mortgage with the interest set at just 1.4%. However, it is easier to get a small mortgage than a large one at the moment. Indeed, according to Stephane Briere of French mortgage brokers CAFPI International banks would rather approve 10 €100,000 mortgages than a single €1 million one. The report suggests that activities and facilities in the summer are as important for buyers in the Alps as the winter sports. Road cycling, mountain biking and trail running have all made the summer fashionable again in the mountains, and buyers want to know what a mountain resort offers in July and August as well as winter. In part, that's because some are keen runners and cyclists themselves: but also because they're looking for better rental returns. Also leaseback schemes, which allow buyers to reclaim the VAT on their property purchase provided they put their apartment into a rental pool are becoming more flexible. In the past, most leasebacks gave owners just three or four weeks' annual use of their property. But now some allow owners 26 weeks of use along with the full 20% VAT refund. The report also says that a new wave of developments is giving buyers who are keen skiers the chance to buy back door entry to the world's most famous ski areas and make big savings in the process. Buying in Les Menuires, for example, will give the owner the whole of the Three Valleys. Meanwhile, an apartment in Tignes-les-Brevières gives access to the slopes of Val d'Isère. According to Francois Marchand, Erna Low property director, sales volumes are up, revenues are up, and so too is the average price of each property sold and British buyers are returning but they are more realistic about what buying a second home in the mountains means. ‘These days, our clients see their property purchase as bricks and mortar with benefits, a long term investment whose primary purpose is to improve their quality of life. We’re noticing more… Continue reading
Dubai becoming increasingly popular with British property investors
Dubai is proving to be increasingly popular among British property investors with figures from the land department showing they put £1.9 million into the emirate’s real estate market in 2015. This made them the second largest group of foreign investors behind Indians with UK investment almost doubling in three years. Apartments are the top buy for British buyers, followed by residential and commercial land and then villas with low interest rates, good rental yields and tax free returns on investments behind the rise in investment. According to Sultan Butti Bin Mejren, director general of the Dubai Land Department, the infrastructure in Dubai and the high return on investment makes property in the emirate attractive to buyers from overseas. British investors are looking for a good capital return on their investment, according to Sultan Al Suwaidi, a partner of Sumansa Exhibitions, the company running next month’s Dubai Property Show in London. ‘Dubai is a dynamic global investment hub and has always had attraction for international investors. The property market continues to mature and stabilise as a result of strategically implemented government regulations,’ he pointed out. ‘Returns for both small and large apartments in Dubai are delivering between 7% and 10% yield which is higher than Hong Kong, Singapore and London. Many British people investing in Dubai properties are seeking capital appreciation more than using them as primary or secondary homes,’ he explained. The areas where British investors are buying include Dubai Marina, Palm Jumeirah, Jumeirah Lake Towers and Downtown Dubai. According to figures from the property website Bayut affordable locations such as Dubai Sports City are also becoming more popular. Dubai’s zero taxation on rental income and capital gains is one of the biggest factors that appeal to British buyers and foreign investors in general are inclined to build their portfolios in Dubai to avoid the high taxes in their respective countries. It is also expected that the forthcoming Expo 2020 will boost Dubai’s real estate sector. Last year alone, Dubai attracted 12 million tourists and it is estimated that by 2020 the number of visitors will increase to 20 million, offering holiday rental opportunities for real estate investors. According to international real estate firm JLL, residential prices in Dubai increased by 56% in the last two years and rents by an average of 41% while data from Knight Frank shows that prices have recovered from the downturn and are now close to their peak levels of 2008. Yield returns reached 7.42% in Dubai’s mainstream market in July 2015. Property brokers in Dubai estimate that yields in the cheaper areas of the city such as Sports City are around 6% to 8%. Financing is usually arranged through local banks which will loan foreign buyers up to 50% of the purchase price depending upon their terms and conditions. The buying process is different to the UK. There are no conveyancing solicitors as the Dubai Land Department does the checks and it normally takes about a month to complete… Continue reading
