Found an error?
Report now
Buyers have to dig deepest into their pockets for vacation apartments in St. Moritz. Other Swiss regions are also among the most expensive in the Alps. (archive picture)
sda
The Swiss Alps are experiencing a luxury boom: vacation apartments are as sought-after as they are expensive - especially in top locations such as Verbier or Zermatt. New figures show how far prices have climbed - and where things are particularly tight.
The view stretches far over snow-covered peaks, as does the price tag: the top Valais destination of Verbier has catapulted itself to the top of the most expensive vacation apartments in the Alps. According to the latest figures from the UBS Chief Investment Office, an upmarket second home there now costs at least CHF 21,500 per square meter - more than in any other Alpine hotspot.
The previous price king Engadin/St. Moritz (GR) follows in second place with an entry-level price of CHF 21,200 per square meter. Zermatt (VS) secured bronze with a minimum price of 19,900 francs. This means that destinations in Valais and Graubünden dominate the price ranking.
In an overall comparison of all Swiss vacation destinations analyzed, prices rose by an average of just under 4% in the first quarter of 2024. Although the price curve is flattening, individual resorts are continuing to see strong increases. Arosa is leading the growth with a price increase of a whopping 18%. Regionally, Graubünden stands out with an average increase of almost 6%, while the Bernese Oberland is stagnating.
Since the end of 2019, the Swiss Alps have recorded a cumulative price increase of around 30% - driven by the increased popularity of vacations at home. Hotels are fully booked in many places, especially in the high season, and in some cases are charging a third more for overnight stays than before the pandemic. This makes private vacation apartments the preferred - albeit expensive - alternative for many.
Anyone currently looking for their dream Alpine property is likely to have a hard time. The market is virtually empty. Listings? In short supply. Instead, properties are increasingly being brokered directly by estate agents. New construction activity is also not expected to provide a major boost for the time being.
The bars show the range of prices for vacation apartments in the high-end segment, in thousands of francs per square meter.
UBS
However, impetus could come from the conversion of existing first homes. According to UBS, these can be sold at a premium of around 20 percent when converted into second homes. Unprofitable hotels are also increasingly being transformed into tourist apartments.
However, experts see signs of a breather. UBS real estate economist Maciej Skoczek predicts: "The weak economic phase will dampen demand for second homes." Higher usage costs and a more critical view of purchase prices could lead to increased sales. Prices are likely to largely stagnate in 2025, UBS estimates.
In the long term, however, two groups are likely to ensure sustained demand: the financially strong baby boomer generation, who are looking for retirement homes in the mountains, and foreign buyers. The latter appreciate Swiss real estate as a safe investment despite the strong franc - especially at internationally renowned addresses such as Verbier, Zermatt or St. Moritz.
It remains to be seen whether the soaring prices are just taking a short break or whether a new reality is setting in. Only one thing is certain: if you want to treat yourself to a piece of alpine luxury in Verbier, you need more than just wanderlust - you also need a well-filled bank account.
