Price increase for holiday flats in the Alps
Prices for holiday flats in the Alpine region in the first quarter of 2024 are around 4 per cent higher than in the previous year. Verbier VS tops the list with at least CHF 21,500 per square metre. This is according to a study by UBS. Its experts expect prices to stagnate in the current year.
Prices for holiday flats in the Alpine tourist region were 4 per cent higher in the first quarter of 2024 than in the same quarter of the previous year, UBS reports in a press release on its “Alpine Property Focus 2024″ study. With prices of at least CHF 21,500 per square metre for a second home in the high-end segment, Verbier has replaced the previous leader Engadin/St. Moritz GR. There, holiday flats in the high-end segment are available from CHF 21,200 per square metre. Zermatt VS completes the trio of the most expensive destinations with prices per square metre starting at CHF 19,900.
The experts at the Zurich-based major bank attribute the price increase to a generally high demand for holidays in mountain destinations. Fully booked hotels at peak times increase the willingness to pay for a holiday home. The price level is also being supported by the strong demand for property and weak new construction activity.
However, property experts expect prices for second homes to stagnate this year. “At present, there is much to suggest that the current price boom will not continue,” says Maciej Skoczek, property economist at UBS CIO GWM and lead author of the study, in the press release. “The economic downturn will dampen demand for second homes. Prospective buyers are likely to scrutinise the asking prices more critically.” In the medium term, UBS believes that demand will be supported by the affluent members of the baby boomer generation and from abroad.