The Strategist

Holiday property in France is growing in price as Switzerland is losing popularity

10/24/2017 - 15:57

The demand for winter holidays at ski resorts is falling: a quarter of tourists are coming there just for the sake of landscapes. This affects the prices of luxury real estate in the popular Swiss resorts – they are becoming cheaper. In France, on the contrary, real estate in ski resorts is growing in price.

Real estate in the ski resorts in France is now more expensive than the Swiss, says Knight Frank. Every year, the company composes the Alpine Property Price Index, which reflects the dynamics of the property price index in the Alps. The sample includes prices for luxury accommodation in 16 ski resorts in the French and Swiss Alps. From June 2016 to June this year, the price index for the resorts of the region fell by 1.8%. The average figure consists of two opposites: prices rose in France (the index grew by 1%), but fell in Switzerland (minus 5% on the index).

According to the results of the 12 months ending in the second quarter of 2017, the leader in the growth of prices for elite real estate was the French Chamonix, where prices rose by 5% to € 11 thousand per 1 sq. m. The second place is Val d'Isere with an increase of 2.5% (€ 18.45 thousand per 1 sq. m.). In Switzerland, the largest drop was recorded in Crans-Montana - minus 15% (€ 10,925 thousand per 1 sq. M.). The index in another Swiss resort, Davos, fell by 8.2% (one square meter costs € 11,47 thousand).

The most expensive resort is the Swiss Gstaad, where real estate is estimated at € 29.9 thousand for 1 square meter, and skipass for a week costs € 280. French Courchevel is in second place in terms of prices: € 25.1 thousand for 1 square meter (€ 230 for skipass).

According to Knight Frank, now the demand for ski resorts in the winter is falling. This is happening for two reasons: the number of those who do not ski and has just come to rest in the mountains (25% of visitors annually) has increased, and the popularity of summer holidays in the mountains has grown.