The Alpine ski resort market is highly diverse, with prices, supply and market conditions varying significantly across the countries and regions in which they are located. Broadly, the Swiss resorts are the most expensive (and difficult to buy into – see Transaction and Holding Costs). Prices in Verbier and Andermatt are 80% higher than average for prime property in the Alps (Figure 6). French resorts are among the largest and cover a wide range of price points, while Austrian resorts tend to be more affordable for property purchase – but renting can be expensive.

Holiday home buying in the region peaked in the 2007-08 season, and fell away significantly during the recessionary years. Discretionary second home buyers, reliant on mortgage finance, withdrew from the market after the credit crunch. After a period of stabilisation, prices are on the rise once again, although buyers continue to expect a discount, particularly for second hand properties.

Click on Figure 6 to enlarge

Analysis of sales data suggests more sales are taking place at lower price points as the resilience of the ultra prime markets starts to ripple down the market ladder. The average purchase price of prime property transacted across core Alpine resorts was €1.5m in 2011, at a time when the buyers had retreated to the very best properties. By 2014, this had fallen to just under €1m, with British buyers, in particular, purchasing at levels lower than this.

The markets are also seeing an expansion in the breadth of buyers they attract. Prior to the global recession, British buyers dominated the market, accounting for the vast majority of foreign buyers in many resorts. Today, a much wider variety of buyers are present. These include a wide range of European buyers, particularly those from northern Europe and the Nordics, as well as those from further afield. In Austria, for example where price points are lower, the market was traditionally dominated by German buyers, but British buyers are of increasing importance.

Asian buyers, notably those from Malaysia, Singapore and Hong Kong, are small in number but a major potential growth market. These are globally mobile individuals, who generally already have homes in one of the major European cities. Top Swiss resorts are favoured. The growth in the numbers of Asian buyers has gone hand in hand with a lowering of the average age of Alpine property buyers. Buyers aged between 40 and 49 were the largest purchasing group in 2014, according to data from Savills Alpine Homes.

A rapidly developing market

The Chinese, a fast growing ski market, have yet to make Alpine home purchases in any volume, but the potential could be significant. Skiing is considered a prestigious sport. Chinese skiers numbered just 10,000 in 1996, and now exceed five million. Most of these remain in China to pursue their sport, but Switzerland is second only to Japan as a recipient of these high-spending Chinese ski tourists.

Switzerland Tourism has recently deployed eight Chinese ski instructors at their top resorts in a bid to cater to this growing market. Cultural sensitivities do need to be considered, however. A plan to differentiate the Chinese instructors by green helmets was dropped after it became apparent that wearing a green hat in China signifies unfaithfulness in a relationship.

Swiss resorts remain at the forefront of new technology in a bid to continue to attract skiers from around the world. In Zermatt, for example, ski passes trigger HD cameras which record a skier’s progress down the slopes, providing a take-home movie. Switzerland also plans to establish a national centre for snow sports, with purpose built snow camps for training purposes.

Taken from
Spotlight: Alpine Property Market 2014-15