Here's what to expect from Xmas in July this weekend

The ugly Christmas jumpers, hot chocolate - or mulled wine - by an open fire, and the magical sight of falling snow, what more could you want?

It's no wonder according to research released by booking.com 42 per cent of Aussies find the idea of a white Christmas more magical than the 40-degree celebrations we have here.

But while any Christmas in July celebrations can offer warm drinks and a chance to wear the ugliest festive attire you can get your hands on, snow can be a little harder to come by.

That is, unless you're in Canberra. Not because it's only a few hours' drive to the snow fields, but because this weekend Xmas in July returns, along with its (faux) Snow Lane.

"I'm actually French so I grew up with cold Christmases," festival director Vincent Hernandez says.

"But all the culture around Christmas is the American culture and all the movies and everything are about the fantasy of a white Christmas.

"It's actually the same in Europe as well. We don't have snow; it's always miserable and grey except for in the north. But we have the fairy lights and for many Australians, the feeling of white cold Christmas comes from lots of fairy lights, warm food and drinks and that sort of thing.

"I know for me at Christmas time in Australia, I really miss my winter Christmas with fatty foods, so this festival means I can have both types of celebrations."

And it turns out Canberra is the perfect place to recreate the French festive celebrations of Hernandez's childhood. The winter weather is perfectly matched for the European winters he knows so well.

Despite the cold, it seems Canberra has been more than willing to venture out to the European-style Christmas market.

More than 60,000 people attended the first two editions of the annual event at Parkes Place Lawns, enjoying the mulled wine, fire pits and comfort food.

"We have about 80 exhibitors this year, and about 45 of them are food exhibitors with specialties and we really curate them," Hernandez says.

"They come from Melbourne, Sydney and Brisbane, so we have a real curation of specialties and different stuff from Europe.

"It's all European street food so things like German hot dogs, the French raclette and the French fondue in the cob.

"We also have mussels cooked in cream and wine which is delicious with fries. And we have someone who even does the scallops the traditional way we would do them in France."

When it comes to drinks, the popular hot chocolate bars and chocolate cocktails with toasted marshmallows are set to return, along with the mulled wine bars.

The popular Fire Pit Garden also makes its return this year. Each fire pit can accommodate up to eight people and can be booked for one hour with all-you-can-eat marshmallows and one glass of mulled wine.

Distiller Sheep Dog is also joining the festival this year, creating a peanut butter hot whiskey drink, while the Crowne Plaza hotel's culinary team will deliver a truffle sausage pop-up restaurant at the festival.