Why invest in mountain real estate?

With the national property market experiencing a slowdown, how is mountain investment managing to thrive and maintain its appeal? Between the desire for escape, the rise in the quality of tourist residences and the scarcity of land, Alpine resorts remain a prime location for building long-term wealth. Nicolas Grizard, Sales Director at MGM French Properties, analyses current trends in mountain real estate and outlines the advantages of a model that continues to attract investors despite the economic climate.

Interview with Nicolas Grizard, Sales Director at MGM French Properties

An attractive mountain location, a pleasure purchase

The French property market is slowing down. How does real estate in the mountains position itself in this context?

The mountains continue to attract clients looking to escape and recharge their batteries. Whether they ski or not, our buyers want to enjoy a preserved natural environment both in winter and summer. Many live in towns or cities and find the mountains offer a true change of scenery where they can breathe fresh air, slow down, admire the views... This is often the starting point for a project to invest in mountain real estate. Added to this is the desire to have an apartment that can be enjoyed with family or friends. Buyers want to build lasting assets – property remains a safe haven – but they are also looking for the mountain experience and sense of well-being. Investing in a mountain property remains a genuine pleasure purchase that is not purely speculative.

Why is a tourist residence a particularly effective model in the mountains, especially in the resorts selected by MGM?

Our tourist residences are lively tourist accommodations that are open in both summer and winter which is a perfect match for the needs of the resorts. We provide a steady occupancy rate which boosts the overall economy of mountain resorts and villages, whether it be the ski lifts or local businesses. By guaranteeing municipalities apartments that are not ‘run-of-the-mill’, dedicated to the rental market and occupied, we position ourselves as true partners of the regions and contribute to their attractiveness. This is what allows us to secure premium locations, whether in the heart of the resort, at the foot of the slopes or in areas offering exceptional panoramic views.

What are the prospects for value appreciation and capital gains with MGM?

Mountain real estate investment remains safe. Land is becoming scarce: buildable areas are shrinking, and regulatory constraints are increasing. As a result, existing properties will naturally increase in value. MGM's projects, for their part, benefit from decisive advantages: premium locations, high-quality construction, noble and sustainable materials and carefully maintained properties. Our developments retain and consolidate their patrimonial value, as we can see from residences built around ten years ago that remain as attractive as ever.

Rapidly changing expectations: more services, more comfort

How have buyers' needs evolved and how is the MGM Group adapting?

Our move upmarket has led to a growing demand for integrated services: concierge, activity organisation (paragliding, ski lessons, airport transfers), cleaning during stays, etc. Our residences are largely inspired by hotel standards and the development of our mixed hotel and residence concepts has facilitated this evolution. We have also introduced convivial entertainment, such as weekly music evenings – now offered in all our residences – which have been a real success.

 

What types of properties are most appealing today?

In general, customers are now looking for more spacious properties: our 2-bedroom apartments often measure 60 to 65 m², nearly 10 m² more than a few years ago. Buyers are spending more time in their apartments and want to enjoy all the comforts and amenities of a real home. Our apartments on the top floor of the residences offer generous floor areas, with a duplex layout and chalet-style atmosphere that is highly appreciated.

What services enhance the appeal of investing in your residences?

Our residences are rated 4 or 5 stars and offer a wide range of services. This is what sets us apart and aligns with our commitment to a long term, sustainable investment vision for mountain real estate. All our residences feature a Spa Montagnes du Monde^® wellness area of around 800 m² including a heated swimming pool, sauna, steam room, hot tub, and where specific treatments is offered, plus a fitness room. We also have social spaces and cosy lounges arranged around the fireplace and piano. The M'Bar concept has been rolled out across all our residences, allowing residents to enjoy a drink or a tasting session with family or friends. And as mentioned earlier, we have significantly enhanced our hotel and concierge services to meet every requirement. All these elements increase resident satisfaction as well as the operational value of the property.

Climate challenges are pushing resorts to change their models. How do you respond to this?

We have chosen to maintain a presence in all mountain environments, whether in mid-mountain villages like Samoëns, located at 700 metres or higher-altitude resorts such as La Plagne, located at 2 000 metres. The mountains are no longer just about skiing. Like the resorts themselves, our residences are adapting to the expectations of clients seeking wellness, nature and activities at any time of the year, whatever the weather. The MGM Sérénité programme, tested in Samoëns last summer, illustrates this dynamic and could be extended more widely. The idea is to offer a weekly programme of sports and fitness activities, hiking trips and trail running sessions, for example, to revitalise stays in all seasons and for all profiles.

Favourable tax framework and available properties: major benefits

Which tax incentives currently encourage investment in mountain properties?

The Non-Professional Furnished Letting status (LMNP) remains very advantageous, particularly when it applies to a property under a commercial lease, as is the case with MGM Hotels & Residences.

The main advantages of LMNP status include:

• A purchase financed on the pre-tax amount.
• A guaranteed annual return (approximately 2%), contractually defined in the lease, regardless of actual occupancy.
• Full ownership of the property: the purchaser pays the property tax but does not pay for water, electricity or routine maintenance. Only the owners share of the co-ownership charges applies.

In addition, there is the possibility to deduct depreciation and loan interest, resulting in a tax-neutral or deficit position and therefore no income tax liability. A tax niche secure and stable.

You offer newly built properties. How is this an advantage?

Indeed, we have opened several residences, as recently as last winter, in resorts such as Flaine, Manigod–La Clusaz, Les Contamines-Montjoie and Valmorel. This means we can offer properties that are already constructed and available immediately. This is a real advantage for buyers, who can visualise the property in real terms, see its size, appreciate the views and understand the orientation. Prospective buyers are therefore free from the uncertainties associated with construction and delivery timelines and depending on when the apartment is purchased, they may even be able to enjoy it as early as the following season. It is the perfect opportunity to make an impulse purchase that is straightforward and secure, with all the guarantees of a new build.

What advice would you give to someone who is hesitant to invest in the mountains?

For anyone seeking a second residence for leisure purposes while optimising their tax position and securing their assets, the mountains remain one of the most attractive investment destinations. Tourist residences offer a rare balance between personal use, ease of management and controlled profitability. The mountains remain a popular destination and resorts are doing everything they can to diversify their offerings and develop four-season tourism. A source of authentic emotions and enduring values, the mountains offer a reassuring environment that allows you to rediscover simple pleasures and reconnect with nature. MGM residences align perfectly with this philosophy while embodying the concept of sustainable heritage, guaranteed quality, inner peace and longevity.

Are you considering investing in mountain real estate and would like some advice? 

Contact our MGM&You experts at +44 (0) 207 494 0706 or via our online form.