The Benefits of Seasonal Rental Investment in Luxury Mountain Real Estate
12 August 2024 • 5 min read
The Benefits of Seasonal Rental Investment in Luxury Mountain Real Estate
The mountains are among the most sought-after destinations during the winter season, thanks to the large number of unique advantages and activities they offer. Practicing sports such as skiing in an almost wild, natural setting benefits both body and mind. The snow glitters as the first rays of the sun appear, creating picturesque scenes to be shared in the evenings by the fireplace each year.
Acquiring luxury real estate in the mountains is a significant opportunity, especially when seasonal rental yields offer such an advantage.
The Luxury Mountain Property Market
Market Overview
The most thriving luxury real estate market is undoubtedly in the French Alps. With prices ranging from €10,000 to €50,000 per square meter, luxury properties are highly sought after and are continuing to gain in popularity. In Savoie, the average price per square meter is now more than €6,000 and is steadily increasing, promising a bright future for the luxury market and offering a genuine opportunity to be seized by savvy investors.
Characteristics of Luxury Mountain Properties
Luxury mountain real estate is successful due to its premium properties that meet the highest standards. Chalets remain the most prestigious residences in these areas. Often clad with iconic wood paneling, these properties ensure optimal comfort with large windows, terraces boasting breathtaking mountain views, and interiors designed to meet every expectation.
High-end apartments are also highly desirable. Nowadays, many apartments are built using stone and wood to perfectly match the Alpine atmosphere, while their interiors feature modern designs, high-quality finishes, and wooden elements. Whether opting for a luxury chalet or a luxury apartment, living in the mountains means thriving in a natural setting with convenient amenities and services on your doorstep.
The Advantages of Seasonal Rental Investment
High Rental Yield
Certain periods in the mountains are more favorable for tourism than others. Winter, of course, is a prime time when the ski slopes are filled with sports enthusiasts, the streets are filled with the enticing aromas of mountain dishes, and laughter echoes across the snow. During this season, rental income can be particularly high and, in a few months, can generate greater yields than long-term rentals.
The Appeal of the Mountains in the Summer
In recent years, the summer has also started drawing nature lovers. Many resorts have invested in summer facilities, enabling travelers to enjoy activities such as summer tobogganing, hiking, and water parks. To escape the intense heat of the beaches, the mountains are particularly popular in July and August, offering investors a second opportunity to optimize rental yields over the year.
Tax Benefits
Investing in real estate for seasonal rentals can offer some tax advantages. By applying for “non-professional furnished rental provider” status (LMNP), you can deduct part or all of your expenses from your income. This status can also enable you to claim back VAT on the purchase price of the property as soon as the sale is completed.
Seasonal rental investment in the mountains offers several advantages, provided that the location of your property is carefully considered before purchasing. Focusing your search on the most renowned ski resorts will help you find unique, luxury homes with guaranteed comfort and all services and amenities on your doorstep. If your rental property is perfectly located, the income it generates will be optimal from the first high season – whether winter or summer!
Our real estate professionals at Rising Stone are on hand to assist you throughout this process. Feel free to contact us for further information!