Fashion is of overriding importance when it comes to the success of European ski resorts. We have already identified the ‘up and coming’ rising stars of the Alps (Flims, Ischgl and St Gervais). Rising popularity in ‘freestyle’ skiing and growing appeal to an international market is driving the success of resorts.

An analysis of prices against quality of conditions provides another clue to future outperformers in the Alpine property market. Figure 9 below looks at the development and price uplift potential of our thirty resorts based on their capacity to attract a bigger market. Each is measured by quality of season (length and snowfall), property prices and resort size.

Saas-Fee stands out as offering a quality season (long in length, with good snowfall) but at comparatively low prices for prime residential property. The large, family friendly resort stands out as an area that may offer price growth potential. Andermatt stands out as another resort offering high quality ski conditions, albeit at a higher price point. This comparatively small resort may offer expansion opportunities.

The ‘super prime’ resorts, clustered together offering above average conditions, offer fully-priced real estate. The opportunity here is in new product offering something over and above the rest of the market, particularly in smaller, low supply resorts such as Gstaad.

Click on figure 9 to enlarge

Ski conditions are only part of the story. Some resorts support strong summer seasons so may not be entirely reliant on skiers to occupy accommodation. The number of summer climbers, Mont Blanc tourists, hikers and glacier skiers explain the year-long appeal of Chamonix, with a high number of bedspaces per kilometre of piste, for example.

At a national level, we anticipate further outperformance of Austrian resorts, as a growing number of EU and international buyers seek value property with fewer buying restrictions and associated costs.

The ultra prime Swiss and French resorts, defined as much by their non-ski offer as the quality of their pistes, will continue to appeal to the global elite, but remain sensitive to national policy conditions. Swiss resorts, with long seasons and reliable snowfall, coupled with growing numbers of purchasers from outside of Europe, may have the edge. In the near term, French Alpine property offers a buying opportunity given price discounts relative to other Alpine markets.

Taken from
Spotlight: Alpine Property Market 2014-15