Which resort leads our Ski Property Index?
The Knight Frank Ski Property Index tracks the movement in price of a four-bedroom chalet across 19 resorts located across the French and Swiss Alps, with the addition this year of the Swiss resort of Champéry
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Overall, the Ski Property Index increased by 1.2% in 2020, down marginally from the 1.4% seen last year, suggesting the pandemic has had little impact on prices to date.
"Saint-Martin-de-Belleville tucked away in the Three Valleys leads the index this year with prices up 3.4% on an annual basis. The closest of the Three Valleys resorts to Geneva Airport, it is one of only a few resorts to still offer development opportunities."
Last year’s frontrunner, Val-d’Isère, now sits in second place, its altitude and caché still a winner with buyers seeking a long-season resort with reliable snowfall and excellent amenities. Verbier is the highest-ranking Swiss resort this year recording annual price growth of 2.9%, its schools continue to attract an international clientele, a number have opted to base themselves in the Alps semi-permanently due to the pandemic and upgraded their home as a result.
French resorts dominate the top half of the rankings this year with buyers attracted by the resorts’ rental prospects and good liquidity. Roddy Aris, Knight Frank’s head of sales in the French Alps explains: “Prices in most French resorts are being supported by a lack of new supply as building permits become increasingly hard to obtain, which is resulting in a 5%-10% premium for new-build homes.”
The Courchevel resorts register a solid performance with investment in infrastructure in recent years paying off as buyers look to future-proof their purchase.
High levels of stock combined with the ongoing impact of Lex Weber (a 20% cap on second homes) are deflating prices in some Swiss markets but resorts such as Crans-Montana, St Moritz and Gstaad are starting to turn a corner.
According to Alex Koch de Gooreynd, Knight Frank’s head of sales in the Swiss Alps: “The smaller resorts of Grimentz and Champéry are presenting nonresidents with a good choice of new-build apartments at lower price points which is generating interest.”
"International buyers are looking more favourably at Switzerland as a permanent base, due not only to its handling of the crisis, but also the lifestyle it offers."
Along with the US dollar, the Swiss franc is the world’s go-to safe currencies from which to shelter during times of uncertainty and with interest rates now negative (-0.75bps) the appeal of Swiss property is strengthening.
Negative interest rates mean Swiss banks are effectively charging clients to store their capital, leading many to look to a property investment as a means of wealth preservation and income generation.
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For more information please contact Kate Everett-Allen