The French Alps has reportedly been selected as the host for the 2030 Winter Olympic Games, marking a triumphant return of the event to the region after a hiatus of 38 years since Albertville in 1992.
The candidacy, now the sole contender, solidifies France's commitment to winter sports and will likely mark the start of an estimated €1.5bn infrastructure investment across a number of established alpine destinations.
“This is significant news for the French Alpine industry,” remarks Camille Letuve, partner at Athena Advisers. “Whilst it's not 100% confirmed, the consensus seems to be it’s 99% likely to be in the French Alps. With established resorts already hosting various global competitions annually, much of the expected infrastructure development will focus on improving permanent facilities. This contrasts with destinations like Sochi or Pyeongchang, where a substantial amount of temporary infrastructure was created."
The estimated budget for the project stands at €1.5bn, with the games spread across four centres: Haute-Savoie, Savoie, Briançonnais and Nice Côte d'Azur. Notably, 12 out of the 13 dedicated infrastructure centres built for Albertville will be utilised in 2030.
Locations
The selected Alpine resorts include renowned names such as Courchevel, Méribel, La Plagne, La Clusaz, and Val d'Isère. The French National Olympic and Sports Committees emphasised that these resorts will use up to 95% of existing infrastructure. The only additions required are an ice rink, expected in Nice, and a speed ring.
"Grenoble also has existing infrastructure, such as the second largest ice rink in France, so considerable discussion is expected over the final details," adds Letuve. "The Winter Olympics returning to the French Alps is a testament to the region's prowess in winter sports. We anticipate a significant boost for the French Alpine industry, given the already established infrastructure and the prospect of further improvements."
Property price rise potential as development restriction tighten
“An upswing in prices is likely,” comments Charles-Antoine Sialelli, head of Athena Advisers French Alps division. “Prices in the French Alps have been rising by 3-5% in some resorts, largely due to the tightening of building restrictions. The expectation was that that such rises would temper over the next few years. However, based on previous market shifts related to the Olympics arriving in Turin and Vancouver, the prices of well located properties in the selected resorts could increase by 20% to 30% from their current levels by the time the games start.
“The demand for these sought-after locations has remained consistently high, even post Covid, driven by the region's allure for winter sports enthusiasts,” adds Sialelli. “Compounded by the natural constraints of limited buildable areas and the increasingly stringent rules governing property development, which are different in each resort, a surge in demand from investors or new owners wanting to secure a place before 2030 sets the stage for an increase in property values.”
An increase in property prices echoes past trends observed in cities hosting Olympic Games, such as Vancouver in 2010 and also Milan and Cortina d'Ampezzo in preparation for 2026.
For the 2010 Winter Olympics in Vancouver, a total investment of C$6.64bn was made in infrastructure, leading to a 10% average increase in property prices in the year leading up to the event. Similarly, Milan and Cortina d'Ampezzo are projected to experience a 10-15% increase in property prices over the next three years, fueled by a €1.7bn investment in Olympic infrastructure.
Rental prices likely to increase by 20% during the games
Foreseeing a notable uptick, rental prices in the French Alps are expected to experience a surge of approximately 20% during the Winter Olympics, according to Athena Advisers.
“The impact on rental property prices will be reliant on several factors, including the proximity to a specific Olympic discipline’s venue, the overall demand for rental properties and the size of the properties,” continues Sialeill. “It’s also likely that larger properties, which could host both teams of olympians or groups of attendees, will be in particularly high demand. It will we a period of high earnings for those fortunate enough to own a property in any of the chosen resorts.”
Drawing parallels from international studies, research published in the Journal of Hospitality and Tourism Research revealed that rental prices in Pyeongchang, South Korea, witnessed an average increase of 15% during the 2018 Winter Olympics. Notably, the study highlighted a more substantial surge, reaching 25%, in apartments located in close proximity to Olympic venues.
Similarly, a study conducted by the University of British Columbia unveiled that rental prices in Vancouver, Canada, saw an average rise of 10% during the 2010 Winter Olympics. The research showed a particularly pronounced increase in short-term rentals, where prices experienced an average surge of 20%.
