Prime prices in the Alps were up 4.8% in the year to June 2017 with Chamonix-Mont-Blanc in the lead, according to Knight Frank’s Ski Property Report.
The increase stems from buyer demand being influenced by investment in ski and non-ski infrastructures. The Index revealed that French ski resort Courchevel and Swiss ski resort Villars-sur-Ollon have key projects planned to meet this increased demand.
Buyers are either picking high-altitude resorts that offer authentic winter snowfall or seeking a dual-season resort for augmented rentals throughout the year.
“It is a very exciting time to be investing in the Alps,” Roddy Aris of Knight Frank commented: “There are of course challenges ahead such as the long-term implications of Brexit and the erratic winter seasons but the draw of the mountains has never been stronger.”
He added: “Resorts are having to evolve and adapt to meet the demands of today’s buyers. Huge investments have been pledged across the Alps from artificial snow-making facilities to adapting and evolving activities for the summer and family market.”
The Index also detected a weaker price performance among Swiss resorts, likely driven by restrictions on foreign buyers and the power of the Swiss Franc.
Alex Koch de Gooreynd of Knight Frank, Switzerland, discovered that clients wanted to take advantage of the tax arrangements on offer eight years ago. However, things since then have changed, with Switzerland possessing a healthy economy for investment.
“Today my clients are drawn to the region by the stable economy, excellent personal safety and world-class education,” he said. “The property market has also gone through changes but performance differs hugely from canton to canton.”
He continued: “In the city centres, a lack of quality stock has maintained price levels while those regions with an abundance of stock have undergone a price correlation.”