A flurry of development by the MGM Group in the French Alps is slated to capitalize on real estate price strength and meet robust demand. The scattered ski resort projects will consist of eco-friendly leaseback properties providing rental income and a lavish vacation lifestyle for investors. See the following article from Property Wire for more on this.
More than a thousand new ski resort properties are to be built the French Alps in a bid to keep pace with growing demand.
The record number of new developments will be state of the art in terms of sustainability and fuel economy, according to the developer, MGM Group.
Although full details have yet to be announced, the developer based in Annecy says it has plans to start work on new schemes in 11 locations as soon as this winter’s ski season is over.
Richard Deans of MGM’s UK sales office in London’s Regent Street says that, for the company, this will be the biggest ever number of new developments to get underway in a single year.
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‘Several factors have combined to achieve this. Planning applications which have taken some time to reach the approval stage now have the go-ahead and, with market growth across the French Alps gaining momentum, we decided to draw a higher than usual number of sites from our land bank so that we can start creating new apartments for occupation in less than two years from now,’ he explained.
Richard explained that demand has pushed property prices in the French Alps back up to the pre-credit crunch levels of 2007. ‘While current demand makes further rises inevitable, currency exchange rate fluctuations may temper the high levels of demand we saw in the summer. Sales in July and August this year were the best I can ever remember,’ he added.
All of the new developments will be residences de tourisme with the properties available being sold on a leaseback basis. This enables purchasers to receive a guaranteed annual rental income during the first 11 years of their ownership while also enjoying several weeks of personal use of their property each year.
Four star facilities within MGM’s residences usually include an indoor pool, fitness suite, gym, sauna, jacuzzi and steam rooms, as well as a beauty center with a variety of massages and treatments on offer.
Plans for the 11 new residences have been welcomed by the MGM Group’s specialist hotel management company, La Compagnie de Gestion Hoteliere (CGH), which was established five years ago to provide a letting and management service for owners. CGH, which quickly gained recognition as one of the leading companies engaged in mountain tourism, offers accommodation packages which have attracted business from more than 115 European tour operators and others in North America, Russia and the Middle East seeking accommodation for their clients.
Some of the new residences will be built in resorts and villages where MGM already has a strong track record of successful development. They include Tignes, Samoens, Cohennoz, Les Carroz and St Martin de Belleville. Others, which are new locations for the company, include Combloux, Chatel and Valmorel.
In all cases, the developments will be at the forefront in terms of sustainability and fuel economy, said MGM which has signed up to the principles of Haute Qualité Environmental, the international construction industry’s high environmental quality standard which aims to integrate the principles of sustainable development defined at the 1992 Earth Summit. The company also is a founder member of Sustain Worldwide, set up earlier this year to promote sustainable development in the international property industry.
This article has been republished from Property Wire. You can also view this article at Property Wire, an international real estate news site.