An ultimate lifestyle investment - Buying a Chalet in Alps
I started exploring the Alps around 12 years ago, due to my frequent trips to Milan.
Val Gardena in the Dolomites of South Tyrol, Northern Italy stood out as an ideal destination for families, boasting excellent slopes for various ski levels and the finest ski school for kids.
That was the time when my dream of owning a chalet appeared. I explored Austria, specifically, Salzburg and Tirol regions, in search of options for our family, and i still continue to visit different areas and look for various opportunities.
Investing in Ski Resorts
For many years, tourism has been the primary reason for visiting the Alps. However, over the past 3 years a noticeable shift in trends has emerged. The demand for fresh air and the opportunity to work remotely in the splendid outdoor environment are now key driving factors of the market.
Investing in a property in the mountains offers not only a unique lifestyle but also the prospect of a favourable yield.
Eventhough seasonality affects property use and rentals, it's still considered as a solid investment offering a good and stable return on investment (ROI) with values holding steady, as well as the best place to spend your weekends or holidays with your family. A lot of people might be apprehensive about managing property from a distance, but today every ski resort has numerous management companies engaged in management and rental of your property for a fee of 20-30%.
How many months can the property be used or rented out?
Ski resort areas typically have two seasons – winter (December to March) and summer (June to September). This provides a potential rental period of eight full months. Winter is dedicated to skiing and snowboarding, while summer offers opportunities for hiking, cycling, relaxation, and enjoying the milder temperatures compared to lower altitudes. Some areas with glaciers, though last years heavily affected by climate change, extend the usability to a few more months.
Where to buy?
Alps are definitely not the only option to own a chalet or an apartment if the budget is lower. A lot of the Balkan or Nordic countries have large mountain ranges and even though it is hard to compare them with countries like France, Switzerland and Italy, they are still worth the investment. Lower budgets have the potential to generate comparable ROI, emphasizing the significance of making the right decisions regarding the location and selecting the right property.
The most important aspect in making an investment lies in selecting the right location. Given the effects of global warming, including melting glaciers and reduced snow cover, investing in high-altitude resorts emerges as the most viable option.
Furthermore, while smaller resorts may be more authentic and have a certain charm, opting for a renowned ski resort enables more precise investment. Properties situated in well-known areas such as Chamonix, Meribel, Courchevel, Zermatt are likely to facilitate easier resale at favorable prices. These renowned resorts draw substantial amount of tourists and offer amazing services and amenities, that boasts a demand for accommodation.
If you're a ski lover or seek privacy, tranquil moments with family, and unparalleled views with access to nature, now is the ideal time to invest in rental property in the Alps.
As the French saying goes: "the mountains win you over"!
Ina Toma
Real Estate Advisor