Tourism and local facilities meet to create a vibrant and economically successful town with excellent local amenities for education, shopping, the arts and fine dining. Annecy is often referred to as the “Venice of the Alps” because of the flower-lined River Thiou and Vassé canal that meander through the medieval old town. The skyline is dominated by the 12th century castle and Basilica of the Visitation which provide panoramic views of the red-tiled rooftops of the old town and the lake. One of France’s most photographed scenes is the famous “Palais de l’Ile” at Annecy, which was built on an island in the River Thiou in the 12th century. This triangular-shaped building once housed the old mint, law courts and dungeons and is now a museum.

Prices and properties

Prices in Annecy rose by 20% in 2005 and approximately 10% in 2006 - a period which is strongly anticipated to be the quiet before the storm. In 2009 a new motorway linking Annecy and Geneva will reduce the commuting time to just 20 minutes. Local French employees will be able to work in Geneva, receive higher Swiss salaries and increase their buying power by 30-50%. Annecy will also become a viable option for Swiss buyers that already enjoy higher salaries and are seeking “cheaper” French property over the border. Proximity to the cities of Geneva, Grenoble and Lyon continues to have a positive effect on the local property market; Annecy's ideal location and fabulous surroundings continue to draw buyers seeking a cosmopolitan base set amidst some of the best skiing and outdoor pursuits the world has to offer.

The local Annecy area attracts families, retirees, international and investment buyers. The main price hotspots are by the lake in Annecy centre and the villages along the banks of the lake, particularly on the “Rive Est”, or eastern side. The highest demand in Annecy is for 1 and 2 bed apartments and land to build on. Competition for apartments is fierce and having your finance in place and the ability to move quickly are key. Land is a particularly rare find these days and priced at a minimum of 300 euros per m². 

If you are seeking a detached house then the cheaper options are those further out of town in the villages to the north and west of Annecy. In these areas the investment prospects are good. Annecy’s new hospital is due to open to the north of the town in 2007 and an influx of staff to the area is expected to drive up demand, as well as the positive affects of the new motorway which will arrive in Annecy on the northern side. At present the average price for a 3-4 bed property in an older style in these locations starts at 400,000 euros.

Down by the lake a large proportion of buyers are British and Belgian. A villa on the water on the east side will sell for around 2 million euros; the same on the west side is likely to be cheaper and if you go for a property set back from the water you'd be paying around 650,000 euros. Demand for the lake front in Annecy centre tends to come from those residents who used to live in one of the lakeside villages and now want to move further into town. Prices for apartments in the lakeside part of Annecy are an average of 5,000 euros per m² but in the golden triangle "Albigny" sector new and old lakeside apartments are often selling for as much as 10,000 euros per m².

Property hunters in Annecy centre are very keen on new build apartments, which come with all the mod cons of garage, cellar and lifts – the type of facilities that properties dating from the 13th century in the old town aren’t able to provide. However, for a second home owner, the old town holds all the charm and making of a great holiday base and rentals to other tourists during the summer will be at their highest here.

In general terms, you can expect to be able to charge between 10 and 14 euros per m² in Annecy for an annual let. For tourist lettings you can double this depending on the quality and location of the property and time of year.

The advice of local agents?

The feeling in Annecy is very much that this is a temporary lull in the market. Capital growth of 10% in 2006 is extremely healthy and no-one believes that the market will decline. If you’re thinking of buying in Annecy the time really is now, when there is more flexibility to negotiate and before new transport and employment developments re-energize the market back to fever pitch.

If you’d like to talk to us about property in Annecy and the surrounding area please contact us on +33 450 10 44 23 or at info@ascendant-property.com or visit the property pages of the website.