The UBS Swiss Alpine Property Focus report is one of the most extensive, backed up by the bank’s omnipresence in all the major resorts
In the last 12 months APi has witnessed more client interest in Switzerland than ever, so does their data back up our own findings?
In short, yes. UBS concludes that the Swiss Alpine holiday home market remains exceptionally strong, supported by constrained supply, growing domestic wealth, robust tourism, and continued international demand. Although tighter regulation is being proposed, the bank expects prices to continue rising at mid-single-digit annual rates over the coming years. There is one surprise in the data, which we will come to.
Unpacking these factors, we are interpreting the UBS findings, alongside our own experiences over the last 12-18 months.
Safe haven, low interest rates, tax benefits
Wealthy foreign buyers continue to see Switzerland as a safe haven during geopolitical uncertainty, of which there has been plenty. Low and exceptionally stable interest rates are without doubt a supporting factor; even during the market turbulence at the beginning of the US-Iran war, the SARON rate remained stable, in negative territory. Moreover, the advantages of moving your tax residence to the country are well known, some resorts/communes have been offering highly competitive lump sum tax deals.
Supply Constraint is an understatement
To say that supply is constrained could be the understatement of the year. Finding the right property is unquestionably challenging, even with criteria which in a more balanced market would be perfectly reasonable. However, with patience, our local knowledge and the right connections, this can be achieved.
In most resorts, no new properties that non-residents can own are being built. Even the stock of second homes has increased by only about 0.5% annually over the last five years.
Relative choices, domestic wealth, demographics
We would also point to some relative factors. Firstly, some investors who might otherwise also consider a purchase in France remain concerned about the country’s fiscal position. Meanwhile in Austria, the much stricter interpretation of the ownership rules has pushed that market out of favour. Secondly, Swiss hotel prices are now 35% above 2019 levels, making ownership relatively more attractive.
Switzerland is a wealthy country. Between 2017 and 2022 households earning more than CHF 200,000 increased by 20%. Households with net assets above CHF 500,000 rose by 16%. UBS also notes the growing population approaching retirement age, many of whom aspire to convert holiday homes into permanent residences later in life.
Name-checking the outperformers
The steepest gains last year occurred in the resorts in Graubünden (over 5% on average), followed by Bern (over 4%), and in Valais and other regions (around 3.5%).
Turning to individual resorts, it’s the usual suspects. The biggest annual price increases were Crans-Montana +15.2%, Andermatt +12.5%, Davos/Klosters +12.5%, Engadin/St. Moritz +7.1%. Arosa continues to stand out over the longer term, with prices having risen almost 90% since 2019, the strongest performance of all destinations analysed.
However, readers may wonder about Verbier where to our surprise a 7.8% decline is reported. While still in the top 3 most expensive, caution is required interpreting this result too closely.
The data tracks agent’s asking prices - a glance at any Verbier agent website demonstrates the issue - now almost all of the little for sale is POA, notably in the higher price range. And since POA listings more than doubled, only the cheaper-priced listings contribute. The same is true in Gstaad (up by ‘only’ 3.3%), where furthermore many sales are made privately. In our estimation, values in Verbier have increased in the 10-15% range over the last 12 months.
This brings us to the price per square metre numbers in the report. We ask readers to take a pinch of salt and consider that higher value listings are, in many cases, not captured by the data if they are POA. We note that in many resorts, smaller properties sell more in volume, at lower price points. Best in class properties in sought-after locations are rare, they can command prices between 50% and 200% higher than the averages.
Is there anywhere left that still offers good value in a high quality ski area? Yes. Feel free to contact us to discuss.
Regulations: one uncertain, the other currently an unknown.
Prior to the 'No to Switzerland of 10 million’, a population cap referendum held in June 2026, the Swiss Federal Council proposed tightening Lex Koller, reducing annual permits for foreign buyers from 1,500 to 600, with approval required for every purchase by a foreign non-resident. This may have been just a fig leaf, some industry experts now expect the proposal to be quietly dropped, since the vote did not pass.
From 2029, cantons may introduce a second-home tax following changes to Swiss taxation - details have not been announced. Both of these topics are discussed in our recent blog Swiss Referendums - Tail Risk?
The UBS opinion, which we share, is that higher taxes and tighter foreign ownership rules may temper demand at the margin, but they are unlikely to derail the market.
