Where have we seen this before ?!?!

U.K.'s Chamonix Investors Boost Prices, Spark Tension
(Update2)2006-03-15 03:51 (New York)
(Adds details of home sales in 12th paragraph.)
By Simon Packard March 15 (Bloomberg) -- Mickael Colombin says many of hischildhood friends can't afford property in their hometown nearChamonix, a ski resort at the foot of Mont Blanc. They havewealthy investors, particularly from Britain, to blame. ``Young people with good jobs are moving out because it'sno longer possible to stay,'' said Colombin, a 30-year-oldmarketing executive for a local construction firm. Ski towns like Chamonix have become among France's mostexpensive places to live. Real estate prices in the Upper Savoyregion, running from the southern shore of Lake Geneva to MontBlanc, have increased 15 percent a year since 2002. Two-thirdsof foreign buyers come from the U.K., causing resentment amongthe French and prompting regional governments to try to limitpurchases by international investors. It's ``making everyone jealous and developing tensionsbetween locals and foreigners,'' said Bernard Prud'homme, thedirector of Chamonix's tourist board. New apartments in the Tarentaise area of the Savoy regioncan go for an average of 9,300 euros a square meter. Even an old70-square-meter (753 square-feet) apartment in Chamonix sellsfor 279,300 euros ($334,500), according to the latest figuresfrom the Paris-based Notaires de France, the French notaries'federation. That's about 10 times the average salary in Franceand well beyond the reach of Chamonix locals with seasonal jobs. Property closest to Geneva's airport is most in demand aslow-cost airlines such as Luton, England-based EasyJet Plc maketravel more affordable.
Quick Trip to Slopes
Getting to the slopes in less than five hours fromChichester, in southern England, was key for Richard Elwes. Heexpects to spend about 1 million euros for an apartment in achalet in Les Houches, near Chamonix, he said. ``The Chamonix valley has it all,'' said the 55-year-old,who is turning his back on farming to develop his land andinvest in property. ``This allows me to diversify my assets andI get a better income.'' The effects of the property boom on Chamonix are visible tovisitors. In a parking lot on the town's limits stand about 50battered camper vans and mobile homes, where seasonal workersand low-budget skiers prefer to stay, rather than pay the 500euros a month that it costs to rent a studio. Those unable to live in the ski towns settle in the plains,where land is half the price, and commuting up the mountain towork, said Thierry Lejeune, who surveyed property prices in 110Savoy region ski resorts for the notaries' federation.
Local Identity
To prevent Chamonix from losing the very identity thatattracts investors, the town hall is setting aside land andloosening rules to provide affordable housing for locals, saidDeputy Mayor Francoise Devouassoux. ``Yes, we're being protectionist but we're doing it to helplocals stay put,'' she said. The policies aren't always a success. Locals who bought newhomes at a discount under a town hall program have doubled ortripled their investment by selling their homes, she said. Ill feelings in Chamonix have been directed chiefly at theBritish, whose economy will have grown 9.8 percent more thanFrance's between 2000 and the end of this year, according toestimates by Luxembourg-based Eurostat. ``Our prototype customers are professionals in their mid-40s with money to spare and wanting to get some fun out of theirinvestment,'' said Joanna Yellowlees-Bound, managing director ofErna Low Ltd., a London ski-tour operator. The company startedselling real estate two years ago and handles about 75 sales ayear in the French Alps.
Left Out
The French feel left out because English has become thelingua franca of the town's population of 10,000. The Britishare the largest contingent of foreign tourists, who outnumberthe French. Workers in Chamonix's bars, shops and restaurants oftendon't speak French. The success of British entrepreneurs like41-year-old David Kartal, who has built a hotel, chalet andshuttle bus business, has added to the jealousies. Tensions have simmered since newspapers highlighted the``English invasion'' two years ago, alleging that Britons wereknocking on doors offering cash sums to locals to sell, he said. ``If locals really want to keep Chamonix French, they wouldaccept less when they sell their homes,'' said Kartal, who haslived in the valley for 20 years. ``I can understand a certainresentment, but why pick on people who have invested in Chamonixand contribute by bringing in jobs and money?''
Locals Profit, Too
The French Notaries' study showed that foreigners provided41 percent of investment in new apartments built in ski resortsin Upper Savoy in the year ended Sept. 30. Not all locals grouse at the foreign influx. Luxury chalet-builder Grosset-Janin has more than doubled sales to about 20million euros a year since 2000. Some customers demolishexisting structures to build chalets in the traditional timberstyle. ``With land in short supply, it will always be a goodinvestment,'' said Antoine Charignon, a developer who is apartner with Grosset-Janin. Even Colombin recognizes that if the price were right, hetoo might join the exodus. He and his wife, a teacher, joinedforces with three other couples to buy a third of an acre in LesHouches. By July, the couples will move their families into fournew chalets. ``We're lucky to be able to stay,'' he said. ``It won't befor the next 30 years and there will be sales by some or all ofus.''
--Editors: Root (bab)