Alps: Why invest in luxury real estate?

The Alps are world-renowned for their panoramic views, ski resorts, authentic mountain villages, palace hotels, and rare, atypical, often grandiose properties. This El Dorado of luxury real estate is sure to make you melt. Expect an idyllic setting for both year-round living and vacations; extraordinary sites in the heart of nature; ski slopes, luge runs, and other winter sports to share the joys of the snow with loved ones; clean air and wide-open spaces; a vast range of establishments and services for pampering holidaymakers; increasing, year-on-year real estate value; and property types to suit every lifestyle. For many people, investing in luxury real estate in the Alps is a natural next step. Buying a chalet is often a childhood dream. But it is also a rational investment for anyone interested in seasonal property yields or the added value of the Alpine real estate market.

The luxury real estate market, particularly in Alpine resorts such as those in the Southern Alps, is undergoing a remarkable expansion. This is happening for several reasons:

• Unlike mid-altitude resorts, which are losing their appeal, unique locations in the high Alps always benefit from exceptional snow cover. Courchevel, Méribel, and others offer exceptional settings for winter sports such as skiing, snowboarding, and hiking. Demand is therefore naturally rising in the luxury Alpine real estate market.
• Owning a chalet in the Alps is perceived as a symbol of prestige, success, and pleasure. Championing mountain art de vivre, the Alpine setting is the perfect place to get away from it all and entertain guests in style. Outside France’s borders, buyers from Russia, the UK, the USA, and the Middle East are flocking to acquire their own private corner of the French mountains. This boom in international demand is helping to boost the value of Alpine real estate.
• Strict town-planning regulations in mountainous areas puts limits on the construction of new properties, thereby helping to bolster the value of existing ones. In new developments, the few residences under construction tick every box in terms of comfort (heated parquet flooring, large terraces, home automation, a private spa), insulation (A-grade energy rating), services (high-speed fiber-optic broadband for remote working, a concierge service, a ski room), and aesthetics. And for good reason: the world’s finest architects and interior designers work together to design these extraordinary spaces, contributing their expertise to the pursuit of excellence.

In a word, luxury real estate in the mountains is renowned for being an attractive, safe investment. In the Alps, it is a rational investment decision that carries with it an aura of prestige. For many, it represents the culmination of a successful career and a keen investment strategy.

The vast majority of luxury chalets and apartments in the Alps are second homes and as such are not occupied all year round. As a result, they can be rented out to generate additional income.

In France, mountain real estate offers numerous tax advantages:

• VAT reimbursement: The “para-hotel regime” and the “Censier-Bouvard scheme,” via the seasonal rental of a second home or a rental investment property, entitle owners to the reimbursement of the VAT on a new-build property if the property is owned for more than 20 years.
• Tax relief: Being the owner of a meublé non professionnel (“non-professional furnished rental property”) allows for the deduction of expenses incurred in renting out said property. The costs of furniture, heating, property tax, renovation work, and maintenance therefore reduce the landlord’s tax base.
• Capital gains tax exemption on resale: If a second home in the mountains is owned for more than 22 years, it is exempt from income tax upon resale. If the property is sold after more than 30 years of ownership, the capital gains on resale of the chalet or luxury apartment is also exempt from social security contributions.

In the highest parts of the Alps, property values have been rising significantly for several years. One stark example is the upward trend in prices per square meter in Courchevel, which have tripled between 2017 and 2024 , rising from €5,000 to more than €15,000/m².