Foreign investors drive out locals
According to a recent survey, ski towns like Chamonix have become among France's most expensive places to live. Real estate prices in the area have increased by 15% a year since 2002. Two-thirds of buyers now come from the UK and this has been causing some resentment among the French as they are unable to afford to stay in their hometowns. According to the Paris based French Notaries Federation, a 70m2 apartment in Chamonix can sell for €280 000; about ten times the average French salary and well beyond the reach of Chamonix locals with seasonal jobs.
The effects of the property boom on Chamonix are visible to visitors. In the Grépon car park on the edge of town stand about 50 battered camper vans and mobile homes where seasonal workers and low-budget skiers prefer to stay rather than pay the €500 per month that it costs to rent a studio. Others who are unable to live in town have no choice but to move further down the valley where land is half the price and then commute to work.
In order to prevent Chamonix from losing the very identity that attracts investors, the Town Hall is setting aside land and loosening rules to provide affordable housing for locals said Deputy Mayor, Francoise Devouassoux. “Yes, we are being protectionist but we are doing it to help locals stay put.” However, the policies are not always a success. For some Chamionards, profits from rising property prices are just too tempting.
Ill feelings in Chamonix have been directed chiefly at the British, with the French feeling left out as English has become the prominent language in the town. Although the British make up the largest contingent of foreign tourists, it is the many workers in Chamonix's bars, shops and restaurants that often do not speak any French that have stirred up the most resentment.
However, not all locals are complaining about the “British Invasion”. The notary study went on to show that foreigners provided 41% of investment in new apartments built in ski resorts in the Haute Savoie in the last year. Luxury chalet builder Grosset-Janin has more than doubled sales to about €20 million a year since 2000. Antoine Charignon, a developer and partner with Grosset-Janin said “with land in short supply, it will always be a good investment”.
Source: Bloomberg.com
