British Investors in Chamonix Push Up Prices, Spark Tension
March 15 (Bloomberg) -- Mickael Colombin says many of his childhood friends can't afford property in their hometown near Chamonix, a ski resort at the foot of Mont Blanc. They have wealthy investors, particularly from Britain, to blame.
``Young people with good jobs are moving out because it's no longer possible to stay,'' said Colombin, a 30-year-old marketing executive for a local construction firm.
Ski towns like Chamonix have become among France's most expensive places to live. Real estate prices in the Upper Savoy region, running from the southern shore of Lake Geneva to Mont Blanc, have increased 15 percent a year since 2002. Two-thirds of buyers come from the U.K., causing resentment among the French and prompting regional governments to try to limit purchases by international investors.
It's ``making everyone jealous and developing tensions between locals and foreigners,'' said Bernard Prud'homme, the director of Chamonix's tourist board.
A 230-square-foot (70 square-meter) apartment in Chamonix sells for 279,300 euros ($334,500), according to the latest figures from the Paris-based French Notaries Federation. That's about 10 times the average salary in France and well beyond the reach of Chamonix locals with seasonal jobs.
Property closest to Geneva's airport is most in demand as low-cost airlines such as Luton, England-based EasyJet Plc make travel more affordable.
Quick Trip to Slopes
Getting to the slopes in less than five hours from Chichester, in southern England, was key for Richard Elwes. He expects to spend about 1 million euros for an apartment in a chalet in Les Houches, near Chamonix, he said.
``The Chamonix valley has it all,'' said the 55-year-old, who is turning his back on farming to develop his land and invest in property. ``This allows me to diversify my assets and I get a better income.''
The effects of the property boom on Chamonix are visible to visitors. In a parking lot on the town's limits stand about 50 battered camper vans and mobile homes, where seasonal workers and low-budget skiers prefer to stay, rather than pay the 500 euros a month that it costs to rent a studio.
Those unable to live in the ski towns are settling in the plains, where land is half the price, and commuting up the mountain to work, said Thierry Lejeune, who surveyed property prices in 110 Savoy region ski resorts for the French Notaries Federation.
To prevent Chamonix from losing the very identity that attracts investors, the town hall is setting aside land and loosening rules to provide affordable housing for locals, said Deputy Mayor Francoise Devouassoux.
``Yes, we're being protectionist but we're doing it to help locals stay put,'' she said.
Faster Growth
Ill feelings in Chamonix have been directed chiefly at the British, whose economy will have grown 9.8 percent more than France's between 2000 and the end of this year, according to estimates by Luxembourg-based Eurostat.
``Our prototype customers are professionals in their mid-40s with money to spare and wanting to get some fun out of their investment,'' said Joanna Yellowlees-Bound, managing director of Erna Low Ltd., a London ski-tour operator. The company started selling real estate two years ago and handles about 75 sales a year in the French Alps.
The French feel left out because English has become the lingua franca of the town's population of 10,000. The British are the largest contingent of foreign tourists, who outnumber the French.
Workers in Chamonix's bars, shops and restaurants often don't speak French. The success of British entrepreneurs like 41- year-old David Kartal, who has built a hotel, chalet and shuttle bus business, has added to the jealousies.
`English Invasion'
Tensions have simmered since newspapers highlighted the ``English invasion'' two years ago, alleging that Britons were knocking on doors offering cash sums to locals to sell, he said.
``If locals really want to keep Chamonix French, they would accept less when they sell their homes,'' said Kartal, who has lived in the valley for 20 years. ``I can understand a certain resentment, but why pick on people who have invested in Chamonix and contribute by bringing in jobs and money?''
The French Notaries' study showed that foreigners provided 41 percent of investment in new apartments built in ski resorts in Upper Savoy in the year ended Sept. 30.
Locals Profit, Too
Not all locals grouse at the foreign influx. Luxury chalet- builder Grosset-Janin has more than doubled sales to about 20 million euros a year since 2000. Some customers demolish existing structures to build chalets in the traditional timber style.
``With land in short supply, it will always be a good investment,'' said Antoine Charignon, a developer who is a partner with Grosset-Janin.
Even Colombin recognizes that if the price were right, he too might join the exodus. He and his wife, a teacher, joined forces with three other couples to buy a third of an acre in Les Houches. By July, the couples will move their families into four new chalets.
``We're lucky to be able to stay,'' he said. ``It won't be for the next 30 years and there will be sales by some or all of us.''
To contact the reporter on this story:
Simon Packard in Paris packard@bloomberg.net
bloomberg.net
March 15 (Bloomberg) -- Mickael Colombin says many of his childhood friends can't afford property in their hometown near Chamonix, a ski resort at the foot of Mont Blanc. They have wealthy investors, particularly from Britain, to blame.
``Young people with good jobs are moving out because it's no longer possible to stay,'' said Colombin, a 30-year-old marketing executive for a local construction firm.
Ski towns like Chamonix have become among France's most expensive places to live. Real estate prices in the Upper Savoy region, running from the southern shore of Lake Geneva to Mont Blanc, have increased 15 percent a year since 2002. Two-thirds of buyers come from the U.K., causing resentment among the French and prompting regional governments to try to limit purchases by international investors.
It's ``making everyone jealous and developing tensions between locals and foreigners,'' said Bernard Prud'homme, the director of Chamonix's tourist board.
A 230-square-foot (70 square-meter) apartment in Chamonix sells for 279,300 euros ($334,500), according to the latest figures from the Paris-based French Notaries Federation. That's about 10 times the average salary in France and well beyond the reach of Chamonix locals with seasonal jobs.
Property closest to Geneva's airport is most in demand as low-cost airlines such as Luton, England-based EasyJet Plc make travel more affordable.
Quick Trip to Slopes
Getting to the slopes in less than five hours from Chichester, in southern England, was key for Richard Elwes. He expects to spend about 1 million euros for an apartment in a chalet in Les Houches, near Chamonix, he said.
``The Chamonix valley has it all,'' said the 55-year-old, who is turning his back on farming to develop his land and invest in property. ``This allows me to diversify my assets and I get a better income.''
The effects of the property boom on Chamonix are visible to visitors. In a parking lot on the town's limits stand about 50 battered camper vans and mobile homes, where seasonal workers and low-budget skiers prefer to stay, rather than pay the 500 euros a month that it costs to rent a studio.
Those unable to live in the ski towns are settling in the plains, where land is half the price, and commuting up the mountain to work, said Thierry Lejeune, who surveyed property prices in 110 Savoy region ski resorts for the French Notaries Federation.
To prevent Chamonix from losing the very identity that attracts investors, the town hall is setting aside land and loosening rules to provide affordable housing for locals, said Deputy Mayor Francoise Devouassoux.
``Yes, we're being protectionist but we're doing it to help locals stay put,'' she said.
Faster Growth
Ill feelings in Chamonix have been directed chiefly at the British, whose economy will have grown 9.8 percent more than France's between 2000 and the end of this year, according to estimates by Luxembourg-based Eurostat.
``Our prototype customers are professionals in their mid-40s with money to spare and wanting to get some fun out of their investment,'' said Joanna Yellowlees-Bound, managing director of Erna Low Ltd., a London ski-tour operator. The company started selling real estate two years ago and handles about 75 sales a year in the French Alps.
The French feel left out because English has become the lingua franca of the town's population of 10,000. The British are the largest contingent of foreign tourists, who outnumber the French.
Workers in Chamonix's bars, shops and restaurants often don't speak French. The success of British entrepreneurs like 41- year-old David Kartal, who has built a hotel, chalet and shuttle bus business, has added to the jealousies.
`English Invasion'
Tensions have simmered since newspapers highlighted the ``English invasion'' two years ago, alleging that Britons were knocking on doors offering cash sums to locals to sell, he said.
``If locals really want to keep Chamonix French, they would accept less when they sell their homes,'' said Kartal, who has lived in the valley for 20 years. ``I can understand a certain resentment, but why pick on people who have invested in Chamonix and contribute by bringing in jobs and money?''
The French Notaries' study showed that foreigners provided 41 percent of investment in new apartments built in ski resorts in Upper Savoy in the year ended Sept. 30.
Locals Profit, Too
Not all locals grouse at the foreign influx. Luxury chalet- builder Grosset-Janin has more than doubled sales to about 20 million euros a year since 2000. Some customers demolish existing structures to build chalets in the traditional timber style.
``With land in short supply, it will always be a good investment,'' said Antoine Charignon, a developer who is a partner with Grosset-Janin.
Even Colombin recognizes that if the price were right, he too might join the exodus. He and his wife, a teacher, joined forces with three other couples to buy a third of an acre in Les Houches. By July, the couples will move their families into four new chalets.
``We're lucky to be able to stay,'' he said. ``It won't be for the next 30 years and there will be sales by some or all of us.''
To contact the reporter on this story:
Simon Packard in Paris packard@bloomberg.net
bloomberg.net
