Switzerland hosts the five most expensive markets for holiday homes in the Alpine region, according to a recent report. The Engadin/St. Moritz area tops the list with prices starting at CHF 22,300 per square meter. Verbier follows closely with prices beginning at CHF 22,100 per square meter. Other high-priced areas include Zermatt, Gstaad, and Andermatt.
In the French Alps, Courchevel leads with premium holiday home prices starting at CHF 17,900 per square meter. Kitzbühel is Austria's priciest location at CHF 13,900 per square meter, while Cortina d’Ampezzo holds the top spot in Italy with prices from CHF 11,800 per square meter.
The demand for holiday homes surged after 2020 due to travel restrictions and an increase in remote work opportunities. This led to a price rise of around 30 percent on average across the Alpine regions analyzed since then. Despite higher financing costs slightly slowing this trend, prices in top destinations rose by about 2.3 percent in 2024.
Maciej Skoczek from UBS CIO GWM predicts that "in the short term, price developments in the Alpine region are likely to further weaken." He cites Europe's subdued economic outlook and high financing costs as contributing factors.
Swiss real estate remains attractive due to geopolitical uncertainties and falling mortgage rates. However, high price levels are causing market slowdowns in regions like Graubünden.
Regulatory changes could impact future demand and supply dynamics. The Second Home Act has been relaxed since October 2024, allowing more second homes on the market. Additionally, potential regulatory interventions such as tightening Lex Koller could affect foreign real estate acquisitions.
Overall buyer interest may shift towards more affordable regions as current trends continue.