Global Updates

Ski property

It’s been a story of resilience and adaptation for the Alpine property market, despite three interrupted ski seasons due to the pandemic.

A move to hybrid working, a rekindled love of the great outdoors and heightened interest in wellbeing boosted demand during the 2021/22 ski season. One in four ski home buyers are now seeking either a second home or co-primary property entirely for their own personal use, with no plans to rent their property.

Strong demand, set against a backdrop of limited stock in some resorts, explains why this year’s Ski Property Index increased by 5.8% year-on-year, its strongest rate of growth for eight years.

But, there are clouds on the horizon.

Low interest rates have allowed easy borrowing for more than a decade, but a new landscape beckons as mortgage costs and energy prices ramp up.

This year’s new Ski Sentiment Survey gets under the skin of what factors purchasers of ski homes are considering before buying. From property and location preferences to their key motivations and from sustainability to the impact of Brexit, we gauge their thoughts.

I hope you enjoy reading the 14th edition of the Ski Property Report, and if the Alpine team can be of assistance, please do get in touch. Our network now expands across 23 resorts with new offices open in both Morzine and Crans-Montana.

S K I  I N D E X  R E S U L T S

 Which Alpine resorts lead our annual rankings for prime property price growth?   

The price of a ski home is rising at its fastest rate for eight years. The average price of a four-bedroom chalet across the 23 alpine markets we track increased by 5.8% in the year to June 2022, up from 4.6% a year earlier.

This means prime prices in the French and Swiss Alps rose on average by 13.9% during the pandemic.

Swiss resorts outperformed their French counterparts for the second consecutive year, with prices up 7.1% on average compared to 4.3% in French resorts. However, this follows eight years of French ski resorts outperforming their Swiss neighbours.

The Swiss resorts of Crans-Montana and St Moritz lead the rankings, both registering an annual growth of 14% in the year to June 2022.

Crans-Montana, which saw muted activity prior to the Covid-19 crisis, has bounced back with its credentials as a year-round resort firmly back in the spotlight. Located on a southern-facing offer the same year-round appeal –lakeside living in the summer and a long ski season, plus restaurants that remain open all year round.

Verbier (8%) has seen a large volume of sales in the last 12 months which is pushing stock levels lower. Demand is truly global, with enquiries from UK and US-based buyers notably strong last season.

This year sees the inclusion of three new ski resorts in the index, Morzine, Les Gets and Kitzbuhel, reflecting the expansion of Knight Frank’s network in the Alps.

The Portes du Soleil resorts of Les Gets and Morzine lead the French rankings this year with prices climbing 11% and 9% respectively.

The performance of the French resorts is largely split by region. Resorts in the Haute-Savoie region (Chamonix, Megève, Morzine, Les Gets) have performed strongly due to their proximity to Geneva Airport, alongside their year-round appeal due to their mid-altitude status and their affordability. These three factors are chiming strongly with a new breed of co-primary property hunters looking to make multiple trips a year.

Summer tourism in these resorts, featuring food and music festivals, combined with a surge in sporting events (trail running, MTB races, road cycling, hiking etc), are together helping to boost rental income for owners looking to capitalise on demand from a wider cohort of mountain lovers.

The Savoie resorts by comparison (Vald’Isère, Courchevel, Méribel) retain their cachet but with higher market entry levels they appeal to a smaller cohort of wealthy buyers seeking the best winter ski conditions. 

We expect the exuberance in the alpine markets to cool in the next 12 months. That’s not to say we expect prices to fall,  in times of volatility and uncertainty the security of the Swiss Franc is likely to come to the fore once more, along with the value and accessibility offered by the French resorts. But after three stellar years, the economic headwinds will start to weigh on buyer sentiment in the Alps and globally, prompting the rate of annual price growth to slow.