Why and how to invest in the mountains?
When it comes to investing in real estate, seasonal rentals are a highly profitable option. But what are the advantages of investing in the mountains? Is it a good investment?
Real estate investment in the mountains remains relevant. In recent years, the market has been booming. In 2024, property prices in ski resorts rose by an average of 2%. This growth is due to ever-increasing demand, driven by the appeal of the French mountains in both winter and summer.
Mountain vacation rentals are booming. In winter, snow sports attract a loyal clientele, while in summer, the mountains become a popular refuge from the heat for activities such as hiking, mountain biking and climbing. This dual appeal guarantees rental occupancy over a large part of the year, making it a particularly attractive investment.
In 2025, resort real estate is more than ever a strategic choice; the scarcity of land and the quality of projects consolidate the value of real estate assets. Added to this is the prospect of the 2030 Winter Olympics, which promises to boost interest in the region even further.
New properties in the mountains offer undeniable advantages over older properties. Nearly two-thirds of mountain homes are rated E, F or G according to the energy performance diagnosis (DPE), and will gradually be banned from long-term rental by 2034. These bans reinforce the appeal of new housing, built to the latest energy standards, with high performance and low energy bills. But the benefits don’t stop there. By investing in new-build property, buyers benefit from :
- Reduced notary fees: maximum 3%, compared with 8% for older properties.
- VAT reclaim*: 20% reimbursed for rental properties with hotel services (cleaning, laundry, reception of tenants).
- Comfort and modernity: increasingly spacious, attractive and functional homes, adapted to today’s needs.
- Quality architecture: new buildings meet strict aesthetic criteria imposed by local authorities, preserving the charm of Alpine resorts.
Regardless of global economic uncertainties, mountain real estate is holding up well thanks to its unique positioning. The French mountains remain a safe haven for investors, with a balance between personal enjoyment, rental profitability and asset enhancement.
In 2025, mountain real estate will continue to appeal thanks to its stability, growth opportunities and unrivalled tourist appeal. For investors, it’s a good year to take the plunge and invest in this booming sector.
*VAT recovery through rental management
Value-added tax (VAT) represents a significant additional cost when buying a new property. However, VAT can be reclaimed under certain conditions. This can save up to 20% on the total cost of the property investment.
To benefit from VAT reimbursement on a new property purchase, several conditions must be met:
- purchase a new-build property from a property developer
- Rent out the property as a non-professional furnished rental (LMNP) with hotel-like services.
- Commit to keeping the property for at least 20 years
To be eligible for VAT, furnished rentals must be accompanied by at least 3 of the 4 following para-hotel services: breakfast, regular cleaning of the premises, supply of household linen, reception of guests. This tax system offers a number of advantages:
- Recovery of VAT on the purchase price of the property
- Deduction of depreciation and expenses
- Unlimited deduction of losses from overall income
- Exemption from IFI on the property used for the para-hotel business.
The para-hotel sector offers investors a highly attractive tax environment, provided that certain formalities and management constraints are respected. It is advisable to enlist the help of professionals who are familiar with this complex system.
That’s why Promojay has recognized partners in property management. We can advise you and share with you the experience of the many customers we have assisted in their real estate investment projects. When you buy a new property with a rental estimate, you can be sure of a fully informed investment.
Despite rising prices, they remain highly competitive with neighboring resorts (Courchevel, Méribel, etc.). As a result, buying an apartment or chalet in St Martin-de-Belleville is an investment with high potential for asset enhancement in a highly sought-after sector. Why not take the plunge in 2025? Don’t hesitate to contact us with any questions you may have – our team will be happy to discuss the local market with you and present our latest projects.