INSIGHTS ON THE VERBIER PROPERTY MARKET
Property agents GUINNARD IMMOBILIER & TOURISME SA have compiled their proprietary statistics on the Verbier property market for many years. These are essential viewing for owners or prospective buyers interested in buying Verbier property in this Swiss ski resort.
For the last 5 years since the number of properties for resale has been steadily increasing. For the 2nd time in over 30 years prices have dipped in 2007. This decline was skewed by sales of some particularly high value chalets, and it is explained by the sale of several 2nd or 3rd generation properties, since such older places logically have a lower selling price.
In the short term the construction of R2 (secondary residences) will no longer be possible, as a result, supply is dwindling. The economic, political and social stability of Switzerland and the attractiveness of Verbier in particular should support demand and therefore lead to price appreciation.
The market in Verbier (mainly R2 properties) is obviously affected but less than the rest of the valley where we can not yet guarantee if an R1 (primary) can be resold as R2. In Verbier, construction of several R2 properties has been abandoned. The construction of some individual chalets could suffer the same fate.
During the “transition” period (all of 2014), prices remained stable and, because of low supply growth, they should continue to rise. It is too early to estimate how the market will react in the short term. Over the medium term prices should rise assuming that supply growth will be slower and that demand is sustained. On the other hand, the general economy of the region will suffer and one can imagine that during a “transitional” period many new homes for resale are listed on the market or rented out. Indeed, many locals might have to look for work elsewhere. The entire local economy would suffer.
In terms of volumes, after a steady increase and a record 2011 (616 million) we still see a solid level number of transactions although 2012 was marked by a sharp drop. Resilience seen in 2013 turned out to be only temporary and by 2016 turnover slid lower again.
By GUINNARD IMMOBILIER & TOURISME, Verbier