_2018 Ski Index results: Which Alpine resort comes out on top?
The index declined by 0.5% in the year to June 2018, a more moderate decline than the 1.8% fall witnessed in 2017. Thirteen of the 16 resorts recorded static or rising prices in annual terms. Three years ago, only five resorts registered positive price growth.
Last year French resorts occupied the top of our rankings, this year two Swiss resorts, Villars (6%) and Verbier (3.4%) have summited. Both resorts have lagged behind in recent years but a surge in investment, both in terms of ski lifts, luxury hotels, beginner areas and non-ski activities have boosted tourist numbers, buyer demand and hence chalet pricing.
Villars' relative value has come into focus in recent years. Home to three international schools, the resort also attracts a number of parent buyers seeking a nearby base.
"Verbier’s ease of access, its southern-orientation – making it one of the Alps’ sunniest resorts – and its broad range of leisure activities explain its high ranking."
Elsewhere in Switzerland, the strength of the Franc has deterred some buyers, with many looking instead for better value in Austria or France. The strong Franc is not only a factor in relation to the acquisition cost but also in terms of weaker long-term rental demand.
For St Moritz (-11.1%), the robust Franc along with high pricing and a mismatch between demand and supply has led to prices softening. There is pent up demand for smaller units but the current inventory is comprised of older, larger style chalets.
Unlike the Swiss resorts, which occupy the two extremes of our rankings table, the French narrative is one of moderation. None of the eight French resorts tracked by the index registered a decline in prime prices in the year to June 2018.
"Record snowfall boosted enquiries across the region during the 2017-18 ski season and for France, it was enjoying an improving economy, strengthening consumer sentiment and growing interest from northern Europeans, in particular from Scandinavian and Benelux buyers."
This year, Val d’Isère (3%) has overtaken Chamonix (2.3%) as the top-performing French resort. At 1,850m Val d’Isère is one of France’s highest resorts resulting in reliable snowfall, quality skiing and a longer season. Val d’Isère generated more buyer enquiries than any other resort last season but supply remains constrained.
Attracting a different demographic to Val d’Isère, Megève and Courchevel continue to build on their brand as luxury resorts with exemplary customer service and amenities.
Courchevel 1550 and 1650 (2.2%) marginally outpaced 1850 (1.5%) in our annual price rankings due to their relative affordability. The lower resorts have a greater dynamism with a number of public and private investment projects underway.
Registering 0.9% annual growth, Méribel has largely peaked in terms of new-build opportunities meaning buyers usually opt to buy older stock and re-build. Méribel Village is increasingly under the spotlight as buyers seek new-build opportunities at €16,000 per sq m compared with €20,000 per sq m in central Méribel.
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