Real estate in Swiss ski resorts

Two thirds of Switzerland is occupied by mountains. This country is a real record holder for the number of the highest Alpine peaks: 48 peaks are concentrated in a relatively small area, the height of which exceeds 4000 meters. The popularity of Swiss ski resorts makes them a magnet for wealthy property buyers from all over the world. 

Swiss resorts are famous for market stability and strict control at the legislative level. A stable economy, low inflation and security make the local real estate sector profitable for long-term investments. In addition to a favorable investment environment, the advantages of Switzerland include a high standard of living and confidentiality, excellent service and high-quality infrastructure, the reliability of the legal system and ample opportunities for business contacts.

Who is interested in real estate in mountain resorts?

Interest in Swiss resort real estate is quite high, especially among EU and UK citizens. Demand from Russian investors has decreased over the past few years due to the imposed sanctions and related restrictions on transactions. If in the 90s and early 2000s the activity of Russian-speaking buyers was high, then in recent years there have been much fewer requests. Citizens of Russia and Belarus are still buying property in Switzerland, but there are few such buyers. Transactions with Belarusians and Russians often require special permission, as well as the use of payments through neutral countries.

Foreigners purchase real estate in Switzerland for a number of reasons:

1. Rest and frequent visits to the country. Having your own accommodation eliminates the need to book hotels for holidays in the mountains.
2. Rental income. Owners can rent out the property for short-term rentals, which is especially important in the winter season. In resort areas, rental prices are high, so such facilities can bring a stable income. However, Swiss laws limit the term of delivery of real estate for foreign owners to a maximum of 11 months per year.
3. Investments and capital preservation.Swiss real estate is considered a reliable way to save capital from economic instability.
4. Access to Swiss infrastructure and a high standard of living. 

Among the foreign buyers there are both individuals and legal entities - large holdings that acquire entire territories and infrastructure facilities: hotels, ski lifts, restaurants, spa centers. For such investors, this is not only the diversification of assets and new business opportunities, but also a chance to obtain a residence permit or permanent residence for family members.

Restrictions for foreigners

Switzerland has strict restrictions on the purchase of real estate by foreign citizens. The purchase of permanent residence facilities is allowed only to foreigners who have a Swiss residence permit of the category "B" or "C". This rule applies even to citizens of EU and EFTA (European Free Trade Association) countries. Individuals who are not residents of Switzerland can buy housing only for recreation, in certain tourist areas, subject to a quota and special permission from the cantonal authorities. These restrictions are governed by the laws of Lex Koller and Lex Weber, aimed at protecting the national real estate market.

According to Lex Koller, foreigners are only allowed to buy 1,500 holiday apartments each year, although the number varies greatly depending on the canton. Valais, for example, has 330 quotas per year, Appenzell-Ausserrhoden, Uri, Nidwalden, Obwalden, Glarus, Jura and Schaffhausen have only 20 each. The administration of each canton has the right to determine the areas in which objects can claim the status of "real estate for recreation". In a certain period, such a quota can be offered by Gschaadt, in some period, for example, Interlaken or another resort. The quota assumes a permit for the free purchase of an object for an individual with the possibility of staying 90 days per half-year, as with any visa. The purchase of a residential facility does not provide any additional advantages in the form of a residence permit.

The conditions of ownership provided for by law:

• A foreign owner has the right to use housing for no more than 6 months a year, of which continuous residence cannot exceed 3 months.
• Purchased objects are allowed to be used only for personal purposes.
• The owner or his family members must personally use the facility for at least 3 weeks a year.
• The maximum size of the living area is 200 sq. m. For a chalet, the plot area is limited to 1000 sq. m.
• Renting out real estate is allowed, but only for up to 11 months per year.
• No more than one holiday apartment or one second house can be purchased per family (the family includes a husband/wife and/or minor children). If one of the family members already owns a country house or a second home in Switzerland, the purchase of another property is possible only if the first one is sold.
• Some cantons limit the time during which real estate can be resold. These restrictions vary from canton to canton. Most often, an object cannot be resold during the first five years of ownership.
The Lex Koller Law also prohibits Swiss citizens from buying real estate on their own behalf for a foreigner and for his money. Such a transaction will be declared invalid. 

The law does not impose restrictions on the purchase of commercial properties if the purchase is related to running a business. Commercial real estate in Switzerland can be bought without restrictions, including by non-EU and EFTA citizens. However, such facilities cannot be used for living. 

The Lex Weber Law additionally limits the number of secondary housing available for construction and sale in tourist regions, which reduces the amount of available real estate. New construction in such areas is limited in order to prevent over-development.

Regions where it is easiest for foreigners to purchase real estate

• Tourist regions in the Alps. The cantons of Valais, Grisons and Vaud have legal exemptions for foreigners to buy housing, especially in resort areas such as Zermatt, Verbier, St. Moritz and Gstaad.
• The Canton of Ticino – this region on the border with Italy is also loyal to foreign buyers. This is especially true for secondary housing and resort facilities.
• The Canton of Lucerne and some areas of Geneva. In the tourist areas of Lucerne and the surroundings of Lake Geneva, it is easier for foreigners to obtain permission to purchase real estate for recreation and seasonal use.

Buyers who are interested in Switzerland, but who are stopped by existing restrictions, can be offered to consider the border France. There are no restrictions on purchase, prices are significantly lower, it is possible to obtain a residence permit. With such preferences, it is much easier to find a job in Switzerland or move there if there is such a goal.

About resorts

The main part of Swiss ski resorts is located in the regions of Grisons, Bernese Oberland, Valais, Central and Eastern Switzerland. The most popular resorts are Verbier, Laax, Zermatt, Davos-Klosters, Gstaad, Interlaaken and St. Moritz. The quality of the infrastructure and the level of local services often surpass their French, German and Austrian counterparts. Another difference between Switzerland and other European resorts is its high level of privilege and privacy, which attracts wealthy clients looking for luxurious, secluded places to relax and stay. 

Verbier (the French-speaking part of the canton of Valais) – this resort is known for its cosmopolitan atmosphere and challenging ski slopes. Cultural life is in full swing here, and rental prices are quite high. Verbier is popular among young people and active investors. Luxury chalets and apartments with panoramic views of the Alps are often bought here. 

Zermatt (south of the canton of Valais) is a fashionable ski resort located at the foot of the Matterhorn Mountain. Due to the difficult ski slopes, it is popular with advanced athletes. There are many upscale chalets and apartments in traditional Swiss style with stunning views of the Matterhorn. The resort is closed to vehicles.It attracts high-status buyers who appreciate tranquility and comfort surrounded by nature. 

St. Moritz (canton of Grisons)One of the oldest mountain resorts in the world. Thermal springs were discovered here three thousand years ago.The market offers spacious chalets and modern villas with elements of wellness complexes and private spa areas. There are also beautiful ones apartments overlooking the lake. St. Moritz is chosen by buyers who appreciate the secular atmosphere and frequent cultural events. 

Gstaad (canton of Bern) is a resort that preserves the atmosphere of an authentic Alpine village. There is much less fuss here than at other resorts of the same category, so Gstaad is popular among families and people who prefer a secluded vacation and the absence of excessive attention. There are many traditional chalets in the region with a high level of comfort. 

Arosa (canton of Grisons) It is located deep in the romantic Shanfig Valley. The resort is popular with hiking enthusiasts. Arosa is famous for its stunningly clean air and unique microclimate. It is usually quiet, windless and almost always sunny here. Local chalets with picturesque mountain views have high investment potential in the long term.

Andermatt (canton of Uri) is located at the foot of the St. Gotthard mountain pass. The resort offers active recreation at any time of the year. In summer, you can go mountain hiking, golf, cycling, and in winter, trails for skiers of all levels are available. Andermatt's infrastructure includes five-star hotels, elite restaurants, golf courses, SPA complexes, as well as educational and cultural institutions, which makes it an ideal place for both recreation and long-term residence. A big plus of the resort is that it is not subject to the Lex Koller law. Foreigners here can freely purchase real estate for personal use or investment purposes. 

Crans-Montana (canton of Valais) – the resort consists of two villages – Crans and Montana. If at first Crans-Montana gained fame as the best place for golf, then over time it became a full-fledged ski resort. There are fewer restrictions on the purchase of real estate by foreigners than in other resort areas, which makes it possible for international investors to purchase exclusive chalet with excellent infrastructure and view of the Bernese Alps.

Prices and types of real estate

Swiss real estate is one of the most expensive in Europe. Housing prices start here from 200,000-250,000 Swiss francs, but such facilities are extremely rare. If we are talking about good modern apartments with an area of 50-60 square meters, you should focus on 400,000- 450,000 CHF. The offers on the market range from traditional houses and modern apartments to chalets and commercial spaces.

At home. There are many such offers in the resort regions. Most of them are based on the secondary market, represented by buildings of the 90s-2000s after renovation. They are usually sold furnished and finished. The average price of a house with an area of 80 sq. m. m will amount to about 2.1 million CHF.

Chalet. Country houses located among alpine meadows and incredible Swiss nature. These are residential facilities with modern finishes, equipped with everything necessary for a comfortable life. A budget chalet can be purchased at a price of 300,000 CHF, an elite one - 3.2-5.4 million CHF and above.

Villas. Even small villas in the mountains most often cost over 1 million Swiss francs.

Apartments. In popular places, Geneva, Zurich, apartment prices range from 11,000 to 16,000 Swiss francs per sq. m. The most expensive objects are in the cantons of Zug and Geneva, where the price can reach 15,000 CHF per sq. m. In less popular regions, for example, Jura and Neuchatel, a square meter costs about 4,000–6000 CHF. The most affordable apartments are located in the small resort towns of St. Gallen, Zuoc, Interlaken, their cost starts from 530,000 CHF 600,000. These are usually compact apartments or apartments in old houses. Studio apartments are rare on the market, after all, the Swiss real estate sector focuses on more exclusive and respectable properties.

Forecasts indicate that prices will remain stable due to the limited supply of new buildings and high demand in the rental market, especially in cities and large agglomerations.

Market trends

Real estate in Swiss ski resorts is still interesting for wealthy buyers, but world events and economic conditions have significantly affected the state of the market. Among the key trends is the slowdown in price growth, which was most noticeable in 2023 and continues in 2024. Forecasts indicate a possible slight decrease in cost in certain regions. At the same time, a significant increase in rents is expected due to higher interest rates and a shortage of affordable housing. 

In recent years, demand has decreased slightly, and buyers are more often interested in secondary properties. The number of transactions decreased by 17% in the first quarter of 2024. The tourist regions have not escaped the recession either. For example, in Grisons, the number of real estate transactions decreased by 36%. Political and economic difficulties, a decrease in the frequency of trips - all this leads to a refusal to own real estate, especially among Russian buyers. At the same time, the owners strive to sell their properties at least below the purchase price, although the results vary: sometimes they manage to make a profit, and sometimes they have to sell cheaper. However, this does not indicate market instability, as prices depend on many factors. Middle-class facilities are more prone to fluctuations, while infrastructure facilities remain stable. They are unlikely to be cheaper in the long run.

The luxury and environmentally sustainable real estate segment also remains stable. High demand is supported by limited supply and Switzerland's attractiveness to international investors. In recent years, the country has increased interest in facilities that meet ESG criteria, which is stimulated by a new climate law requiring full carbon neutrality of buildings by 2050. This encourages investors to invest in energy efficient and sustainable facilities, which contributes to their growth in the market.

High demand for luxury properties in the Alps is also stable, especially in resorts such as Verbier and St. Moritz, where prices remain high due to limited supply and the interest of international buyers. The situation with commercial real estate is less clear. The hybrid work model that has become popular makes it more difficult to rent out middle-class offices, while premium facilities in central areas remain popular. 

In general, the real estate market in Switzerland demonstrates stability and stability. Experts predict that this trend will continue in the coming years, especially in the premium segment. In today's turbulent conditions, Switzerland remains a reliable country, at least for large global capital.
 

Thank you for your help in preparing the material:

Irene Verkhovetskaya, General Manager of the company Estate-Service 24

Natalia Zavalishina, CEO of the company Distant Property

Photos used: Depositphotos.com