Dramatic exchange rate movement taking place in January means property in the French Alps is around 8% cheaper for UK buyers compared to one year previously. At the same time, Swiss homes have increased in price by around 13%, according to ski property specialist Skiingproperty.com.
Purchasers from other countries have also seen fluctuations in prices over the past 12 months: the rouble’s devaluation against the euro since January 2014 has pushed up the price of a French ski property up by more than 60% for Russian buyers and Americans have seen their buying power in France rising significantly as the dollar rose 15% against the euro in the past year.
The cost of a home in Switzerland soared for any foreigner not purchasing with Swiss francs when the currency was unpegged against the euro, leading to an escalation in value against all major currencies.
“The arrival of QE in the Eurozone combined with the Swiss Central Bank’s decision to unfix its currency against the euro could change the dynamics of the European ski property market in Europe this year,” said Julian Walker, director at Skiingproperty.com. “France, a truly international market, immediately becomes more attractive to foreign buyers – and it’s not only property that has become more expensive in Switzerland, but so have all the associated costs of ownership, including mortgage repayments. There could also be repercussions for the rentals market.”