The recovery of the Alpine property market, spurred on by ‘ultra-prime’ resorts, has begun a wider revival across the region.
Infrastructure investment is leading the way, according to research reported by Property Wire. In this post, I’m looking further into the reasons for the recovery and what lies ahead for the market in Europe and beyond.
A weak Euro has signalled a return of British buyers to the region, however a similarly strong Swiss Franc has made property expensive in the country for all foreign buyers. This is according to a report by Savills World Research and Alpine Homes.
Topping the list of ultra-prime ski resorts index is the French resort Courchevel 1850, with typical prices of €31,340 per square meter for the best properties.
The Swiss resorts of Gstaad, St Moritz, Zermatt and Verbier followed behind Courchevel 1850 on the index list, with prices per square meter between €26,450 and €31,220 respectively.
According to Jeremy Rollason, managing director of Alpine Homes, currency has had an effect, albeit a slight one. He said:
‘The weakening euro has helped buyers in euro denominated countries.
Currency swings have the effect of either suppressing or stimulating markets through affordability, but the net effect has little influence on property values per se,’
In Austria, resorts offer ‘excellent’ value for money when compared to established Swiss and French resorts like Verbier and Val d’Isere.
The Austrian ski resort market has growth thanks to the local economy, which has generated growth of 41% in house prices since 2008. Investment in infrastructure and a strong investor appetite allows for upward price movement, according to the Property Wire article.
South Korea and the Balkans were identified as emerging regions in the report, especially for international investors.
Avner Motaev is the director of Mobile2Business, a provider of telecommunications solutions to businesses in Austria. Mobile2Business is an official business partner of T-Mobile.