In the past several years, the already pricey holiday homes in the Swiss Alps have become 30 percent more expensive, according to a new UBS report analysing 140,000 properties in the mountain resorts of Switzerland, France, and Austria.
Swiss towns, however, are the most expensive of the lot, having taken nearly all the top spots in the ranking.
Verbier, in canton of Valais, is in the first place — the price for a square metre of living space in this resort town now costs over 21,500 francs.
St. Moritz in Graubünden is a close second (21,200 francs for sq/m), followed by Zermatt (19, 900), Gstaad (19,700), and Andermatt (18,000).
By comparison, the per-square-metre price (in Swiss francs) in the most expensive ‘foreign’ resort — Kitzbühel, Austria — is 16,200, and in the highest-priced French resort, Courchevel, 13,500.
Mountain villages are certainly picturesque and offer many skiing and hiking opportunities for sports enthusiasts, but these are not the only reasons for the influx of well-heeled residents.
This trend took off during the Covid pandemic, when numerous city dwellers wanted to escape farther away into the 'nature' and be able to work from home.
What does this all mean?
Getting a top franc for their property is enticing to many homeowners, who can cash in and make a good profit.
And having affluent taxpayers move in boosts local economy, which means that everyone living in the community benefits at the end.
“This generally supports the municipal finances which, in turn, raises the scope for infrastructure investments and thus increases the attractiveness of a destination for second home owners,” UBS said in its report.
However, like the proverbial double-edged sword, high property prices also have a negative side.
For instance, as the wealthy move in and prices go up, the lower and middle-class people who may have lived in these mountain communities for generations — running local shops, restaurants, ski lifts, and other essential businesses — can no longer afford to live there and are forced to move out.
While there are no official statistics showing how many people move away from these resorts for financial reasons, anecdotal evidence indicates this phenomenon does exist.
One of many such testimonies comes from Graubünden’s Engadin region.
“Locals have sold historic Engadin houses to wealthy owners, who in turn converted them and used them as holiday homes, becoming popular retreats that are often empty in the off-season,” according to Anna Florin movement, which encourages villagers to withstand the pressure from the real estate agents to sell their properties.
“Life in the village is therefore dwindling or disappearing completely.”
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