Investment Watch: Ski resort sparks avalanche of enquiries

Photo credit: KitLKat

Oh, the weather outside is frightful but property investors were happy to let it snow in November, according to TheMoveChannel.com's Investment Watch report, as a ski resort sparked an avalanche of enquiries.

A fire sale of recently completed apartments in The Three Valleys received the highest enquiries on the site last month, with buyers drawn by the discounted prices and promise of up to 10 per cent NET returns.

Indeed, demand for the French Alps listing was so strong that it even received more enquiries than the Las Lomas resort in Spain. The La Manga apartments, which include free access to the resort's world-class sports facilities, were the most popular listing on TheMoveChannel.com for three months in a row. But that changed when the ski property launched at the end of November, attracting more enquiries in just a few days than the Murcia listing received all month.

Away from the slopes, investors continued to focus on sectors with guaranteed returns. Florida condos, student housing in Glasgow, a hotel suite in Cape Verde and a coconut plantation in Brazil all proved popular, highlighting the investment trend throughout 2012 towards both commercial properties and alternative products. Buyers also showed a continued willingness to turn to European destinations outside of the eurozone, such as Croatia, in search of seaside resorts with rental potential.

But the French Alps raced ahead of the rest as demand for ski property in a familiar destination snowballed in a matter of hours.

Niclas Dowlatshahi, Managing Director of Leapfrog Properties, explains the resort's appeal: "Demand is strong partly because the prices have been so heavily discounted - to be able to have an apartment in The Three Valleys ski domain for £50k is unheard of! These large discounts mean that rental yields are higher than 2 to 4 per cent, which is the normal yield of a leaseback."

Indeed, not being a leaseback investment is what really makes the difference, he suggests.

"Most people who wish to buy in the Alps wish to buy outright, but 95 per cent of new build developments are sold leaseback, which means this development really stands out. It is somewhere they can use themselves as well as generate a good return from, while crucially being in charge of their own property and choosing when they want to rent it out rather than being told when they are allowed to use it."

The top 10 investment properties for November 2012 are as follows:

Notes to Editors

Founded in 1999, TheMoveChannel.com is the leading independent website for international property, with than 400,000 listings in over 100 countries around the world, marketed on behalf agents, developers and private owners.

The website address is http://www.TheMoveChannel.com and the office address is 24 Jack's Place, Corbet Place, Spitalfields, London, E1 6NN.