Rental market: sustained recovery but many last minute bookings

Coming out of the first lockdown, the seasonal rental market has recovered quite strongly. There have been a significant number of long term rentals (two, three or sometimes even four weeks) over the summer season, most notably in Megève, confirming its status as a year-round destination. Longer rentals have even been seen in resorts not usually popular in summer, such as Courchevel Le Praz and Saint-Martin-de-Belleville.

As regards the coming winter season, the level of enquiries shot up following the end of the summer holidays, but without a resulting boom in reserva- tions, as clients await clarity as to how the season will unfold. The new November lockdown has also rein- forced the market's wait-and-see attitude. Enquiries remain healthy but bookings appear to be on hold pending the next government decisions.

With a season that should finally begin in mid-Jan- uary, reservations will be able to start, but for the most part they will be made at the last minute, given the market's cautious stance. Beyond the shortening of the season, however, it is expected to remain, in terms of occupancy rates, below a normal year, although the increased use of second homes by their owners, who are both constrained in their movements and aspire to make the most of their property, may here and there create occasional tension on demand by limiting the available supply, particularly during school holiday periods.

Evolution of demand for sales and seasonal rentals

The demand is there even if

it is expected to remain lower than in a normal year

Jan. Feb. March April May June July August Sept.Jan. Feb. March April May June July August Sept.

160

140

120

100

80

60

40

20

0

160

140

120

100

80

60

40

20

0 Source: Cimalpes

Sales 2020 End of lockdownSales 2019Rentals 2020Rentals 2019

+12% on sale

+139% on rental

PANORAMA 2020-2021