Swiss Ski Property - straight up
The publication of the latest UBS Alpine Property Focus is always a good opportunity for a closer look at the real estate market in the country’s ski resorts. The last 12-18 months, and looking ahead, is an especially interesting period considering factors such as the favourable interest rate environment, global wealth relocation trends, and the safe-haven status of a Swiss Franc asset.
Readers of our previous summaries will have noted our emphasis that UBS has been too cautious. This time, the editorial opens: ”Straight up—that’s been the direction of travel in the Swiss holiday home market for the past five years. Prices have gained more than 30% since 2020—a full ten percentage points more than the rest of the Swiss property market. Sellers are now demanding prices well into six figures per square meter for prime locations.” In the last year alone, prices are up 4%. The outperformers are the usual suspects, which also happen to be the most expensive: St. Moritz, Verbier, Zermatt, Gstaad and Andermatt.
Elements driving the market, according to UBS, are rising stock markets, low interest rates, attractive rental income, demographics and population growth in the mountain regions. Also noted, which APi can quantify, is a continued shortage of stock. The report mentions, as we know, that many sales are not even advertised. It is often apparent to us, and quantified in the data, that Cantons Valais and Vaud have higher availability, while stock levels in Graubünden and Canton Bern are the lowest. Meanwhile, new construction activity for second, or holiday homes has virtually ground to a halt although Lex Candinas has led to a modest increase in regions where supply is tightest such as Klosters, Lenzerheide, Gstaad and Grindelwald.
How sustainable is the price appreciation?
The number of searches for homes in Swiss mountain regions in March 2025 was around 25% higher than in March 2024, and during this 12 month period interest rates have fallen. UBS reckons stock market volatility will have an impact, and also points to price appreciation slowing in some regions, notably Graubünden. Other potential concerns are a potential tightening of Lex Koller, removal of some minor tax breaks, and higher taxes on second homes.
What about interest rates in Switzerland?
As recently reported in the FT and Bloomberg, with inflation declining the return of negative interest rates in Switzerland is on the cards. When we wrote about this in 2020, the conclusion was a clear one: positive for property. Owners are less incentivised to sell and park cash in a bank account, and rental revenues become a more attractive income stream compared to cash or bonds. This time round, we would be surprised if the outcome was any different.
Where is there good value for money in Swiss ski property?
The big beasts of Swiss mountain resorts dominate the price rankings. At APi we often find our clients are looking for value, without compromise when it comes to the quality of the ski area.
Is that even possible? Well, for example, a well located chalet or apartment in Nendaz will be priced at approximately a third of a comparable property in Verbier. A ski-in/ski-out chalet of generous proportions in Veysonnaz will be approximately one third of the equivalent in Verbier (if you can find one). You might consider Morgins instead of Champéry, Les Diablerets instead of Villars, St. Luc or Vercorin instead of Grimentz, Champfèr instead of St. Moritz Dorf.
Give us a call or send us a message if we can help with your ski property plans in Switzerland.
The UBS report in English, French and German: https://tinyurl.com/36pv6jua