Nery Alaev

Investors look to infrastructure investments at ski resorts before making decisions

Nery Alaev writes about ski resort investment.

The decisions of ski resort home-buyers are being increasingly influenced by the investments made by the resorts’ owners, according to a new report from Knight Frank covered by World Property Journal

Image of Ski Resort. Nery Alaev discusses ski resort investment.

Ski resort properties are becoming long-term investments.

I’ve decided to look into the news and conclude.

Growing scrutiny

It does indeed appear that ski resort homes are being increasingly scrutinised by potential buyers, who, according to Kate Everett-Allen of Knight Frank, are adopting a five to ten-year view of their assets.

Key investment features listed include:

  • Whether the resort has plans to link up and create a wider ski domain
  • If the lifts are to be upgraded
  • If luxury brands are leasing retail space
  • If new hotel groups are exploring key sites

There’s a logical reason for such levels of scrutiny – according to the article “a savvy buyer knows that higher tourist numbers mean fewer ‘void’ periods, higher returns and ultimately a more attractive and valuable asset.”

Key resorts

The most prominent resorts in Europe are listed in the article and they include Val d’Isere, Verbier and Chamonix.

European ski resorts Val d’Isere and Verbier are recent trailblazers ploughing significant funds into their amenities. The resort which can lay claim to the title of most well-serviced year-round resort is Chamonix.

Chamonix is a French town with over 10,000 permanent residents and summer visitors, interesting enough, ‘eclipse’ its winter tourist numbers.

The owners of the resort, Compagnie du Mont Blanc is committing a further €477m of investment over the next few years to upgrade the lift system and part of the valley’s infrastructure – this is music to the ears of any investor looking for a long-term venture with a good return.

In summary, it appears that the market is becoming more complex and mature – resort owners, in turn if figures are accounted for, are becoming increasing aware of this.

Nery Alaev

Nery Alaev is the current Director of ESN Investments GmbH, which engages in acquisition and development of commercial and residential property in Germany and Austria.