THE EXPONENTIAL DYNAMISM OF REALTY MARKET IN MEGEVE

THE EXPONENTIAL DYNAMISM OF REALTY MARKET IN MEGEVE

The paradox between booming new development and old sur-estimate market

The rules and regulations of urbanism have caused inertia and stagnation during the last years.
Due to the old occupancy floor plan regulation, more precisely its limitations on possibilities to build, not much land was sold during the last decade making new development projects very rare.

The ALUR law and the new 2017 Local Plan of Urbanism create new opportunities, in particular a possible increase in building typologies and varieties.
This now translates into the launch of 300 to 500 additional new apartments, of all standards, which will be up for sale soon.

Concerning luxury properties that Megeve is so proud of, the trend is very favorable, which was confirmed during the winter season of 2019.

Indeed, a development like GYPAETE, which is localized in Rue des Torrents, less than a 5-minute-walk (<200 meters) from the center, saw the first part of the development sold in less than five months. With an average price of 16 200 € per square meter, GYPAETE, holds the rope with a successful pre-sales which allows itself to plan the construction of a second chalet with only four apartments including two exceptional duplexes of 180 m² and 190 m².

For its part, the new development ESKAPE, only luxury development positioned on the snow front offering a real ski in/ski-out, benefits from the same positive tendencies, thanks to a successful project and a well thought and well managed pre-sales. Interesting to know that the developer also decided to offer a wide range of integrated services run by external companies in order to reduce the yearly co-property charges. A community card, reserved to the condo owners, offers the choice to consume according to their needs and wishes.

Both new developments are sold by Megève Sotheby’s International Realty for whom results and feedback are most encouraging, and who can also benefit from the fact that the brand Sotheby’s International Realty consists of a network of almost 1 000 luxury market agencies worldwide allowing Megève to be represented alongside New-York, Roma, Dubai, London or Moscow.

Regarding real estate, the localization, the quality of the building and the amenities are of high importance to our customers, as is large spaces and quiet surroundings, being synonymous with luxury market property. The prospect of a co-property with only a few dwelling units has shown to be very attractive and in high demand.

The paradox of this market is that you cannot see the forest for the trees.
Even if Luxury market uplift the general real estate market, there are exceptions. Lots of new developments of mid-range market are commercialized with more difficulties and others already postponed construction due to failing pre-commercialization.

Our Anglos-Saxon friends would say the strategy of one-shot doesn’t work anymore.

With a market saying “new”, the old properties will be more difficult to sell or confusing regarding the rates.  Indeed, finding an existing apartment meeting all relevant criteria of the customer can be difficult. The sale on VEFA (Vente en Etat Futur d’Achèvement - Sales of Property for Future Completion) offers the flexibility to work on the floor plans to customize the property, or even combining several apartments into one, as we have already seen in one case in order to create a 320 m² penthouse as a “Chalet on the roof”.

Helped by advantageous tax provisions, as with the luxury rental “Para Hotelier”, a product that Megève Sotheby’s International Realty established on client request and with the benefit of low notary fees, the investment in new developments can take form and contribute to keep making Megève a real attraction in Alps.
 
The luxury market is also synonymous with expertise as well as a guarantee of credibility and high-quality advising.
The support and the listening during the project are the real added value of a qualified real estate agent collaborating with competent and experienced partners (architects, decorators, notaries, lawyers…)

Megève pleases people and the investors.
This lovely rating is because Megève is a “4 seasons village” with hotels, commercial offers and activities for all year.
Contrary to other stations, Megève knows how to avoid inter seasonality and its mountains are accessible to everyone. The quality of life here is undeniable.

Over time, Megève has been and continues to be very well visited for its singularity and charm making it exceptional to residents and visitors as well as to investors.