Renovate, Refurbish, Monetise

Faced with an aging housing stock and a slowdown in new-builds, renovation and refurbishment are becoming a winning strategy for investing in the mountains. They are also a powerful lever for redesigning a vibrant mountain environment that is attractive year-round and able to generate new uses.

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Driven by strong demand for second homes and rental investments, the mountain real estate market has never been so buoyant. And while it is progressively becoming more youthful thanks to new-comers, and supported by the housing associations concerned, which are renovating properties to modernise them, some of the real estate stock has yet to be transformed.

Energy-intensive, uncomfortable, cramped and lagging behind users’ modern expectations…it is thought that more than half of resort properties, most of which were built before 1975 and the introduction of the first energy standards, no longer comply with existing criteria. While some fear that the situation may tarnish the image of the resorts in question, this situation is a godsend for investors.

Indeed, while in an increasingly stringent regulatory context, renovating is becoming crucial in order to stay on the rental market, this pressure is stimulating demand and making older, refurbished properties a safe investment for heritage investors.

What are we talking about ?

In real estate, the terms, renovation and refurbishment refer to different things.

• Renovation means restoring or upgrading a building or dwelling to improve its comfort, aesthetics and energy efficiency.
• Refurbishment, which is more extensive, involves a structural transformation of the building, which has become unsuitable for use or unusable.

Both options call for substantial investment, particularly for insulation, heating and bringing installations up to standard.

A Boon for Investors

As we are all aware, the issue of energy sieves hits resorts harder, given the mountains’ severe weather conditions and architectural specificities. And as the regulations apply to everyone in the same way, large-scale, rapid refurbishment is needed to secure rental use, which is the economic driver of resorts.

Against this backdrop, investors and owners play a key role in revitalising old real estate stock. Bolstered by tax incentives and a favourable economic condition, refurbishment is appealing to increasing numbers of investors, who see it as a double opportunity. On the one hand, they bring value to their assets by modernising a property and, on the other, they optimise their taxation through certain advantageous schemes, such as LMNP (non-professional furnished rental), enabling them to amortise the cost of renovation and furnishings, thereby reducing the taxable rental income.

Think Comprehensive Renovation

A key lever for improving occupant comfort, limiting energy poverty and meeting the new expectations of tourists, who now prefer sustainable and high-performance accommodation, refurbishment is no longer restricted to the thermal envelope. The idea is to reimagine it as an evolving, healthyand sustainable living space, at the intersection of individual, social and environmental needs.

Particular onus should therefore be placed on sourcing renewable materials, local expertise and sustainable technical solutions. The focus will be on low-carbon impact materials, that are more sustainable and environmentally compliant, such as hemp, cellulose wadding and even raw earth, along with architectural techniques adapted to traditional furniture (wood, stone) in order to preserve the identity and enhance the appeal of these areas to visitors seeking an authentic experience. Home automation can also be brought in to intelligently control heating, lighting and ventilation and to optimise daily energy consumption.

Redefine Uses

Renovation projects must also take into account changes in uses and lifestyles. Where accommodation in resorts was once designed mainly for occasional ski holidays, it must now be more flexible in order to meet diverse needs (remote working, workations, longer stays, yearround stays, etc.).

More preoccupied by quality of life and health, holidaymakers are now more sensitive to thermal and acoustic comfort, indoor air quality and – due to population aging – accessibility, emphasising the need to integrate ergonomic and inclusive design solutions.

Finally, in the long term, refurbishing pre-existing accommodation generates significant economic benefits for mountains areas and provides work for many local tradespeople and companies, creating jobs and revitalising the economy.

Find Support

While renovation aligns with the economic interests of owners and co-owners, while also offering the opportunity to redefine uses and enhance the comfort and quality of accommodation, the actual implementation of projects is often hindered by complex administrative procedures, numerous financial assistance schemes (refer to page 25) and limited access to specialised tradespeople.

Fully committed and convinced that refurbishing properties for seasonal rental offers several tangible and strategic advantages, the Cimalpes staff constantly monitor regulatory developments and are trained to help you effectively plan your projects.