A recent report published by UBS shows real estate price changes in european mountain resorts.
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Over the last year, Verbier (-3.2%) and Crans Montana (-3.0%) experienced the largest price declines, while Saas Fee (+14.3%) and St. Moritz (+7.4%) climbed the most.
Prices rises in the Jungfrau region (+4.8%) Gstaad (+1.5%), Flims/Laax (+2.8%), Andermatt (+1.5%), Zermatt (+1.6%) and Davos/Klosters (+1.1%) were more moderate.
Despite Verbier’s decline, property prices remained high at CHF 12,300 per m2, leaving it 6th in a price ranking of the 24 resorts covered in the report. St. Moritz remains the most expensive resort at CHF 15,400 per m2, followed by Gstaad with CHF 14,300 per m2.
The stock of second homes in Swiss resorts continues to grow despite Switzerland’s Second Home Act. While the Act puts tight restrictions on new construction of second homes and sounds advantageous to vacation home owners, most of the first homes, making up 40% of the stock, are not subject to any restrictions on use.
Because resident populations are falling in many resorts, demand for first homes has declined. As a result, many first homes are being sold as second homes. If 1% of main residences are converted into second homes the stock of second homes increases by 0.6%, says UBS.
Over the short-term, a weaker Swiss franc should strengthen foreign demand, says the report.
At the same time, they way people holiday is changing. Online renting is making it easier to find places to stay in different places. And, more young people are trading ownership for experience.
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