/research

SkiProperty

Report2023

Thedefinitiveguidetopropertymarketsintheworld’stopskiresorts

Saint-Martin-de-Belleville

CourchevelVillageCourchevelMoriond

Courchevel1850

2

SKIPROPERTYREPORT2023

REACHINGNEW

HEIGHTS

Hybridworkinghasboosteddemandasmorebuyersseek

aco-primaryhomeintheAlps

KATEEVERETT-ALLEN

HEADOFGLOBALRESIDENTIALRESEARCH

But,therearecloudsonthehorizon.

Lowinterestrateshaveallowedeasyborrowingformorethanadecade,butanewlandscapebeckonsasmortgagecostsandenergypricesrampup.

It’sbeenastoryofresilienceand

adaptationfortheAlpinepropertymarket,despitethreeinterruptedskiseasonsduetothepandemic.

Amovetohybridworking,arekindledloveofthegreatoutdoorsandheightenedinterestinwellbeingboosteddemandduringthe2021/22skiseason.Oneinfourskihomebuyersarenowseekingeitherasecondhomeorco-primarypropertyentirelyfortheirownpersonaluse,withnoplanstorenttheirproperty.

Strongdemand,setagainstabackdropoflimitedstockinsomeresorts,explainswhythisyear’sSkiPropertyIndexincreasedby5.8%year-on-year,itsstrongestrateofgrowthforeightyears(page4).

Thisyear’snewSkiSentimentSurvey

getsundertheskinofwhatfactors

purchasersofskihomesareconsidering

beforebuying.Frompropertyandlocation

preferencestotheirkeymotivationsand

fromsustainabilitytotheimpactofBrexit,

wegaugetheirthoughts(page6).

Ihopeyouenjoyreadingthe14thedition

oftheSkiPropertyReport,andifthe

Alpineteamcanbeofassistance,please

dogetintouch.Ournetworknowexpands

across23resortswithnewofficesopenin

bothMorzineandCrans-Montana.

KnightFrank’sAlpinenetwork

Kitzbuhel

Austria

ZURICH

Neuchatel

Klosters

SWITZERLAND

ChurDavos

Fribourg

FRANCE

StMoritz

LausanneVevey

Nyon

Gstaad

Crans-Montana

Leysin

Villars-sur-Ollon

Grimentz

Champéry

Morzine

GENEVALesGets

VerbierChamonix

Zermatt

LYON

Megève

Bourg-Saint-MauriceMéribel

Vald’Isère

CHAMBéRY

KnightFrankSalesOffice

Airport

SKIPROPERTYREPORT2023

3

3

SKIPROPERTYREPORT2023

KEYFINDINGS

SKIPROPERTYINDEX

TheSwissresortsofCrans-Montana

andStMoritzleadourprimeprice

indexwithannualgrowthof14%

in2022

YEAR-ROUNDRESORTS

OneinfourrespondentstoourSki

SentimentSurveyarelookingfora

year-roundresortwithabroadmixof

skiandnon-skiactivities

CURRENCYPLAY

USbuyersenjoyeda15%discount

whenbuyinginFranceinOctober2022

comparedtoayearearlier,duetothe

strengtheningdollar

ASPEN

SalesaboveUS$5mnowaccount

for62%oftransactionsandluxury

priceshaveexceededUS$4,000

persqftforthefirsttime

In2022,Knight

Frank’sSkiProperty

Indexregisteredits

strongestannual

increasesince2014

ATAGLANCE

4

SKIPROPERTYREPORT2023

SKIINDEXRESULTS

WhichAlpineresortsleadourannualrankingsforprimepropertypricegrowth?

Thepriceofaskihomeisrisingat

itsfastestrateforeightyears.Theaveragepriceofafour-bedroomchaletacrossthe23alpinemarketswetrackincreasedby5.8%intheyeartoJune2022,upfrom4.6%ayearearlier.

ThismeansprimepricesintheFrench

andSwissAlpsroseonaverageby13.9%

duringthepandemic.

slope,boastingtwochampionshipgolfcoursesandawealthofamenities,theresortisbackontheradarofbuyersseekingamoreaffordableSwissbase.

StMoritz’sperformanceisprimarilyattributabletoalackofstock.Itremainsthego-toresortforbuyersfromZurichandMilan;twocitieslessthanathree-hourdriveaway.Plus,therearefewotherresortsintheGraubündenValleythat

SwissresortsoutperformedtheirFrench

counterpartsforthesecondconsecutive

year,withpricesup7.1%onaverage

comparedto4.3%inFrenchresorts.

However,thisfollowseightyearsof

Frenchskiresortsoutperformingtheir

Swissneighbours.

TheSwissresortsofCrans-Montanaand

StMoritzleadtherankings,both

registeringanannualgrowthof14%in

theyeartoJune2022.

Crans-Montana,whichsawmuted

activitypriortotheCovid-19crisis,has

bouncedbackwithitscredentialsas

ayear-roundresortfirmlybackinthe

spotlight.Locatedonasouthern-facing

NEWOFFICEOPENINGS

KnightFrankispleasedtoannouncetheopeningoftwonewoffices,oneintheFrenchresortofMorzineservingthewiderPortesduSoleilregion,andthesecondintheSwissresortofCrans-Montana.

Locatedwithinanhour’sdriveofGenevaAirport,Morzinehaswitnessedstrengtheningdemandinthelasttwoyears.Providingaccesstohigh-altitudeskiingviaAvoriazandhometosomeofthebestMTBtrailsintheworld,theresortisattractingwinterandsummersportsenthusiastsalike.

Crans-Montana,originallytwotowns,Crans-sur-SierreandMontanawhichmergedinthe1960s,islocatedatanaltitudeof1,495m.Playinghosttothe2023Women’sAlpineSkiWorldCup,theGirod’ItaliaandnumerousmusicfestivalstheresortisalsohometoLeRegentCollege,atopinternationalschool,helpingtoattractamixofsecondhomebuyersandpermanentresidents.

OurnewofficesintheAlpsunderlineourcommitmenttoourclients,respondingtoyourchangingrequirements.

Welookforwardtowelcomingyou.

offerthesameyear-roundappeal–lakesidelivinginthesummerandalongskiseason,plusrestaurantsthatremainopenallyearround.

Verbier(8%)hasseenalargevolumeofsalesinthelast12monthswhichispushingstocklevelslower.Demandistrulyglobal,withenquiriesfromUKandUS-basedbuyersnotablystronglastseason.

Thisyearseestheinclusionofthreenewskiresortsintheindex,Morzine,LesGetsandKitzbuhel,reflectingtheexpansionofKnightFrank’snetworkintheAlps.

RESORTSRANKEDBY

PRIMEPRICE

SwitzerlandFrance

€persqm*

1.Gstaad

2.

StMoritz

28,266

3.

Verbier

27,757

4.

Courchevel1850

27,200

5.

Zermatt

23,188

6.

Val-d'Isère

20,900

7.

Kitzbuhel

18,971

8.

CourchevelMoriond(1650)

16,700

9.

CourchevelVillage(1550)

16,500

10.

Davos

16,041

11.

Klosters

16,001

12.

Méribel

16,000

13.

Megève

15,500

14.

MéribelVillage

14,800

15.

Crans-Montana

13,659

16.

Villars-sur-Ollon

13,579

17.

St-Martin-de-Belleville

13,500

18.

Chamonix

13,250

19.

Grimentz

12,481

20.

Leysin

11,597

21.

LesGets

10,000

22.

Morzine

9,538

23.Champéry9,086

*Exchangeratecalculatedasat30June2022

37,941

Austria

5

SKIPROPERTYREPORT2023

KNIGHTFRANKSKIINDEXRESULTS2022

Basedonafour-bedroomchaletinaprimecentrallocation

Annual%changetoQ22022

Annual%changetoQ22022

Crans-Montana

StMoritz

Klosters

Davos

LesGets

Morzine

Kitzbuhel

Verbier

Megeve

Grimentz

Chamonix

Gstaad

Vald'Isere

St-Martin-de-Belleville

MeribelVillage

CourchevelVillage(1550)

Courchevel1850

Meribel

CourchevelMoriond(1650)

Champery

Leysin

Villars-sur-Ollon

Zermatt

Source:KnightFrankResearch

ThePortesduSoleilresortsofLesGetsandMorzineleadtheFrenchrankingsthisyearwithpricesclimbing11%and9%respectively.

TheperformanceoftheFrenchresortsislargelysplitbyregion.ResortsintheHaute-Savoieregion(Chamonix,Megève,Morzine,LesGets)haveperformedstronglyduetotheirproximitytoGenevaAirport,alongsidetheiryear-roundappealduetotheirmid-altitudestatusandtheiraffordability.Thesethreefactorsarechimingstronglywithanewbreedofco-primarypropertyhunterslookingtomakemultipletripsayear.

intimesofvolatilityanduncertaintythesecurityoftheSwissFrancislikelytocometotheforeoncemore,alongwiththevalueandaccessibilityofferedbytheFrenchresorts.Butafterthreestellaryears,theeconomicheadwindswillstarttoweighonbuyersentimentintheAlpsandglobally,promptingtherateofannualpricegrowthtoslow.

Summertourismintheseresorts,featuring

foodandmusicfestivals,combinedwith

asurgeinsportingevents(trailrunning,

MTBraces,roadcycling,hikingetc),are

togetherhelpingtoboostrentalincomefor

ownerslookingtocapitaliseondemand

fromawidercohortofmountainlovers.

MEETTHETEAM

Contact

AlexKochdeGooreynd

alex.kdeg@or

Roddy

Aris

roddy.aris@tolearnmoreaboutcurrentmarketconditions

TheSavoieresortsbycomparison(Val

d’Isère,Courchevel,Méribel)retaintheir

cachetbutwithhighermarketentrylevels

theyappealtoasmallercohortof

wealthybuyersseekingthebestwinter

skiconditions.

Weexpecttheexuberanceinthealpine

marketstocoolinthenext12months.

That’snottosayweexpectpricestofall,

26.4%

%

85

Europe

10

2

MiddleEast

Africa

20.5%

2.6%

%

2.9

7%

16

1

9.2%

7.9%

2.5

1.3%

6

SKIPROPERTYREPORT2023

SKISENTIMENTSURVEY

Thisyear’ssurveyresultsconfirm

somelong-suspectedtrendsbutalsohighlightsomeinterestingnewones.

Weknewthepandemichadinfluencedbuyerpriorities,butthepremiumnowattachedtomountainviews,fastbroadbandandoutdoorspacelookstobesignificant.

TheresultsalsoconfirmtheextenttowhichFranceisthepreferreddestination,itsaccessibilityandaffordabilitybeingakeydraw.

Formostbuyers,anythingaboveathree-hourdrivefromairporttoresortisadealbreakerandanewbreedofhybridworkersareeyeingaco-primarybasewithenthusiasm.

Butitalsohighlightssomepreviouslyunknowntrends.

Notallbuyersenterthemarketwithaclearviewastowhethertheywantanew-buildorresaleproperty,andofthoselookingforanewhomeinFrance,almosthalfareunawareofthecountry’sVATrebateincentive(seepage12).

Sustainabilityandclimatechangeareon

themindsofskihomepurchaserswith

theenergyefficiencyoftheirfutureski

homeapriorityfor54%.Plus,buyersare

lookingcloselyattheoverallresilience

ofaskiresort,theinvestmentplansand

futuresnowprovision.

Itisclearbuyersarebetterinformed

thaneverbefore,bothintermsofpricing

dynamics,marketrisksandopportunities

aswellasfutureproofingtheirpurchase.

ABOUTTHESURVEY

TheKnightFrankSkiSentimentSurveywasconductedbetween7Septemberand12October2022.The

findingsrepresenttheviewsofover230KnightFrankclientslocatedacross33countriesandterritories.

Thedatabelowsetsouttheprofileofrespondentsintermsofage,income,andlocation.

WHEREDOTHERESPONDENTSLIVE?

113

UK

Americas

7

22

AsiaPacific

WHATAGEARETHERESPONDENTS?(%)

0.4%

17.2%

18.4%

28.9%

21.8%

10.5%

20orunder

21to30

31to40

41to50

51to60

61to70

2.1%0.8%

71to80

81+

NBSomedatasetsmaynotaddupto100%duetorounding

WHATISTHESIZEOFTHEIR

HOUSEHOLDINCOME?(%)

30

25

20

15

10

5

0

Lessthan€50,000

€50,001-€100,000

€100,001–€250,000

€250,001–€500,000

€500,001–€750,000

€750,001–€1m

€1m–€2m

€2m–€5m

€5m+

France

50%

23%

Switzerland

9%

Austria

9%

Italy

4%

2%

1%

1%

1%

Japan

Spain

Canada

NewZealand

Australia

22%

Yes

39%

THEPROPORTIONOFRESPONDENTSTHAT

ALREADYOWNASKIHOMEWITH75%OF

RESPONDENTSOWNINGINFRANCE

27%18%17%15%13%8%

7

SKIPROPERTYREPORT2023

BUYERPLANS

OVER70%OFRESPONDENTS

AREEITHERACTIVELYLOOKING

TOBUYASKIHOMEOR

CONSIDERINGAPURCHASEIN

THEFUTURE

Areyoucurrentlylookingtobuyaskihome?

49%

Notcurrentlybutmaybeinthefuture

23%

Noplanstobuy

5%:Other

Almost40%ofrespondentsalreadyownaskihomewithafifthofsurveyrespondentsactivelylookingtobuyaskihomeinthefuture(22%)andanadditional49%consideringapurchaseinthefuture.

Franceremainsthemostpopulardestination,with75%ofexistingownershavingahomethereaswellasbeingthepreferreddestinationforhalfofallfuturebuyers.Switzerlandsitsinsecondplace,followedbyotherEuropeandestinationssuchasAustriaandItaly(both9%).

FRANCEISTHEMOSTPOPULARDESTINATIONAMONGSTTHOSE

LOOKINGTOBUY

Whereareyoulookingtobuy?

LOCATIONPREFERENCES

MORETHANONEINFOURRESPONDENTSWANTAYEAR-ROUNDRESORTOFFERINGBOTHSKIANDNON-SKIAMENITIES

Whenconsideringwhichresorttobuyin,whatarethemostimportantfactors?

1%

Year-roundresort

withmixofskiand

non-skiactivities

Accessibility

Longskiseason

Goodchoiceofrestaurants,barsandnightlife

Valuefor

money

Rental

Returns

Goodskischool/

nurseryslopes

forchildren

2%:Other

8

SKIPROPERTYREPORT2023

ALMOST30%OFRESPONDENTSWANTTOBUYASKIHOMEWITHINANHOUR'SDRIVEOFANAIRPORT

Whenconsideringwhichresorttobuyin,whatisthemaximumjourneytimefromtheairportyouwouldconsider?

4%

1%

31%

30%

LESSTHAN1.5HOURS1.5TO3HOURS3TO4HOURS4HOURS+

34%Other*

QUICKACCESSTOTHESLOPES,AMENITIESANDVIEWSAREKEYFORBUYERSWHENCONSIDERINGWHERETOPURCHASE

Locationfeatures:Howimportantarethefollowingwhenchoosingwheretobuy?

1Proximitytoskislopes

2

Proximitytorestaurants,retailamenities

3

Goodviews

4

Provisionofsummersports;golf,tennis,mountainbikingtracksetc

5

Goodtrailsformountaineering/hiking

6

Asouth-facingmountaintomaximisesunshine

7

Availabilityofspa/wellnessfacilitiesintheresort

8

Goodskischools

9

Townplanningrules

Thesurveyresultsrevealbuyerswantalot

morefromtheirskihomethanasimple

basefromwhichtoski.Ayear-round

resortwhichoffersarangeofsportsthe

summerandwinterisnowthepreferred

choicefor27%ofrespondents.

Accessibilityalsoremainskeywith

18%ofbuyerssayingitistheirnumber

oneconsideration.

Drilldownintotheirpreferencesfurther

and30%wanttobewithinan90minutes

ofanairport,whilst31%arewillingtodrive

upto3hours,butthenumbersshrink

considerablybeyondthistimelimit.

PROPERTYPREFERENCES

MOUNTAINVIEWS,HIGH-SPEEDBROADBANDANDOUTDOORSPACEARETHETOPPRIORITIESFORPURCHASERS

Propertyfeatures:Howimportantarethefollowingfactorswhenchoosingthetypeofpropertytobuy?

Flexibleliving/multiple

userooms

Annex/accommodationforfamily/visitors

Skiin/Ski

outoption

Ahomestudy/office

Ahomegym

Mountain

views

1

High-speedbroadband

2

Sustainable

design

(construction

materials&

energyefficient)

89

Outdoorspace(balcony/garden)

4

6

3

5

7

27%

Existing

7%

New

30%

Other*

30%

26%

9

SKIPROPERTYREPORT2023

OVERATHIRDOFBUYERSREMAINUNDECIDEDASTOWHATTYPEOFPROPERTYTOBUY

Doyouplantobuyanew-buildorexistingproperty?

36%

Undecided

Mountainviews,high-speedbroadbandandoutdoorspacearethetoppropertypreferencesforbuyers,arguablyallattributesmademorevaluablebythepandemic.

Existinghomesstillappealtomorepurchasersthannew-buildhomes,butalargeproportionremainsundecided.Interestingly,44%ofthoselookingtobuyanewhomeinFrancewereunawareofthepotentialbenefitofthecountry’sVATrebatepolicy.

OFTHEBUYERSLOOKINGTOPURCHASEANEW-

BUILDPROPERTY,OVER44%AREUNAWAREOF

FRANCE'SVATREBATEFORNEWHOMES

Iflookingtopurchaseanew-buildpropertyandinFrance,are

youawareoftheVATrebateinitiative?

44%Unaware

MOTIVATIONS

ALMOST30%OFBUYERSARESEEKINGA

SECONDHOMETHATTHEYCANALSOUSEAS

ARENTALINVESTMENT

Whenbuyingaskihome,mymainmotivationwillbe…

Asecondhomeandrentalinvestment(30%)sitsoutinfrontasthemainmotivationsbehindaskihomepurchase,butagrowingproportion(26%)areseekingapropertytouseforextendedperiodsandexclusivelybythemselves.

Intermsofhowbuyersplantousetheirskihome,skiingandenjoyingmountainlifedominate,togetheraccountingfor55%ofresponses.However,atrendwe’veheardaboutforawhileisnowevidentinthefigures,theAlpsareappealingtoanexpandinggroupofathleteskeentousethemountainsastheirtrainingbase.

Amixofsecondhomeandrentalinvestment

Asecondhomeorco-primaryhome(forpersonaluseonly)

Aprimaryresidence

Arentalinvestment(notforpersonaluse)

5%

3%

38%:Other

OVERHALFOFRESPONDENTSPLANTOUSETHEIRPROPERTYASABASETOSKIANDENJOYALPINELIVING

Whenbuyingaskihome,Iplantouseitprimarilyas…..

33%

Abasefromwhichtoski

22%

Abasefromwhichtoenjoythemountains

4.2%

Abasefor

familymembersdispersedgloballytomeet

2.1%

Abasefromwhichtotrain(cycling,trailrunningetc)

0.8%

Combination

ofthe

previous

0.4%

Abasetovisit

mychildren

whilstatschool

intheAlps

38%:Other

DisclaimerNotice?KnightFrankLLP2022–Detailedandbespoketaxandlegaladvicemustbeobtained.

Thisdocumentisintendedtoprovideonlyageneraloutlineanddoesnotconstituteadvice.

32%

Notatall

23%

Alot

10

SKIPROPERTYREPORT2023

SUSTAINABILITY

Climatechangeisonthemindsofskihomepurchasers,with58%statingthatthelong-termresilienceofaskiresortisimportantorveryimportanttothemwhenconsideringwheretobuy.

Furthermore,54%ofrespondentsstatedthattheenergyefficiencyoftheirpropertyisimportantorveryimportanttothem.

Some32%ofbuyersaredoingtheirhomework,researchingtheinvestmentstrategiesbeingpursuedbyresortownerstomaximisefuturesnowprovision.

ALMOSTAQUARTEROFRESPONDENTSTHINKTHEENERGYEFFICIENCYOFTHEIRSKIHOMEIS

VERYIMPORTANT

Thinkingaboutyourfutureskihome,howimportantistheenergyefficiencyofahometoyou?

Important

31%

Veryimportant

23%

Notveryimportant

7%

Irrelevant

1%

38%:Other

ALMOST60%OFRESPONDENTSARETAKINGARESORT'SFUTUREPLANSFORSNOWPROVISIONINTOACCOUNTWHENCONSIDERINGWHERETOBUY

Towhatextentareyoupayingattentiontoaresort’splanstoinvestininfrastructuresuchasskicannonsandwatercollection/storagetofuture-proofsnowprovision?

32%

Alot

26%

Alittle

4%

Notatall

38%:Other

ATHIRDOFRESPONDENTSSAYTHELONG-TERMRESILIENCEOFASKIRESORTISVERYIMPORTANTTOTHEM

Towhatextentdoestheresilienceofaskiresort(snowfall,

temperature,seasonlength)influenceyourdecisionon

wheretobuy?

VeryimportantImportantNotveryimportantIrrelevant

OC

25%

4%

0.5%

33%

38%:Other

BREXIT

SinceJanuary2021andtheUK’sdeparturefromtheEuropeanUnion(EU)UKbuyershavebeenlimitedtostaying90outofevery180daysintheEuropeanUnion.Thelargestproportionofrespondents(45%)saidthishadmadelittledifferencetotheirpurchaseplans,32%saidithadmadenodifferenceatall.

OFTHEUKRESPONDENTS,68%SAIDTHE

POST-BREXIT90/180DAYRULEHADINFLUENCED

THEIRPURCHASEPLANSTOSOMEEXTENT

IfyouareaUKresident,whatimpacthasBrexitandthenew

90/180dayrulehadonyourdecisiontobuy?

45%

Alittle

STAYINFORMED

SignuptoKnightFrank’sResearch

Updates

OTHERGLOBALRESORTS

QUEENSTOWN

NEWZEALAND

LocatedontheshoresofLakeWakatipuonNewZealand’sSouthIsland,Queenstownisthecountry’s“adventurecapital”offeringbungyjumping,boating,fishing,finediningand,ofcourse,skiing.

TheaveragepropertypricesitsataroundNZ$1.3million,accordingtotheRealEstateInstituteofNewZealand(REINZ).Pricesfell7.7%intheyeartoSeptember2022butremain60%higherthanthenationalaverage.

DemandfromAucklandandareasoftheSouthIslandremainsstrong,butthechangingmacroeconomicpicturehasledvendorstobemorerealisticonpriceexpectations.

Since2018,foreignbuyers(exceptthosefromSingaporeandAustralia)arenotpermittedtobuyexistinghomesbutcanmakelimitedinvestmentsinlargerresidentialnew-builddevelopmentsandhotels.

ResidentshaveaccesstofourskifieldswhichopenfromJunetoOctoberandtheresortplayshosttothesouthernhemisphereWinterGamesinAugust.

NISEKO

JAPAN

Hometoapopulationofaround5,000,NisekoislocatedonJapan’snorthernislandofHokkaidoandatwo-hourdrivefromSapporo,theisland’slargestcity.

Typicalpropertiesincludetwotothree-bedroomcondominiumsbetween100and150sqminsizewithaveragepricesbetweenUS$500,000andUS$1.5million.Suchpropertiesaretargetedbysecondhomebuyersandinvestorsalike.

Domesticbuyersmakeuparound70%ofpurchaserswithSingaporeanandHongKongbuyersaccountingfortheremainderofdemand.

Therearefourkeyresorts:Annupuri,NisekoVillage,GrandHirafu,andHanazono,eachsuitingdifferentskiingabilitiesandageranges.

TherearenorestrictionsonforeignbuyersinHokkaidoandthecity’sNewChitoseAirporthandlesaroundthreemillioninternationalpassengerseachyear,afiguresettogrowasNiseko’sbecomesafixtureontheglobalwintersportscalendar,theresortisduetohosttheSkiJumpingWorldCupin2023.

TOWATCH

CORTINA

ITALY

Settohostthe2026OlympicWinter

Games,Cortinad’Ampezzositsinthe

heartoftheDolomitesandwithinatwo-

hourdriveofVenice.

Significantinvestmentintheresort’s

roadsandinfrastructureintherun

upto2026isexpectedtoattractmore

internationalinvestorstotheresort.

Aluxuryfour-bedroomchaletin

theheartofCortinaisavailablefor

€4.5millionwhileatwo-bedroom

apartmentstartsataround€1.5million.

Typicalprimepricesrangebetween

€15,000and€20,000persqm.The

centreoftheresortandthePecolarea

arethemostdesirableandcommandthe

highestprices.

Cortina’saccessibilityisakeydrawfor

buyersfromnorthernEuropeandacross

ItalywithregularflightstoVenice’s

MarcoPoloAirport.Italianbuyers

accountforthebulkofpurchasers,many

fromRome,plusSwissandUKbuyers

remainactive.

Takethepandemic,morenewbusinesseswereregisteredintheUS,UKandFranceduringthecrisisin2020thantheyearbefore.

Butanopportunitycanmeandifferentthingstodifferentbuyers.

ACURRENCYPLAY

Interestratesarerisingaroundthe

Capitalappreciationmaybethesolegoalforsome,reliablerentalincomeapriorityforothers,somemaywanttoprotecttheirexitstrategy,whilstotherswanttoidentifyanaffordableup-and-comingresort.

Belowweprovideourtakeonthetopfiveopportunitiesinthemountainsthisseason.Docontacttheteamtolearnmore,theircontactdetails

canbefoundonthebackpage.

1

NEW-BUILDHOMESINFRANCE

SomenewhomesinFrancecomewithabuilt-inadvantageforpurchasers–apotential20%saving.

Ifbuyingoff-planviaaVAT-registeredcompanyorindividual,buyerscanreceiveaVATrebateof20%,providedtheyagreetoletthepropertycommerciallywitharegisteredmanagementcompany,foraminimumof20years.Ifthepropertyisrentedforlessthan20yearssomeoftheVATwillberepayableonaproratabasis.

Asarule,threeofthefollowingfourservicesmustbeprovided:

?Areceptionforguests(i.e.anAirbnbkeysafedoesnotsuffice

?Breakfastprovision

?Linenincluded

?

Regularcleaningandhousekeeping

Buyingearlyinthedevelopmentprocessisalsorecommendedenablingthebuyergreaterinfluenceoverthedesignandspecificationoftheproperty,plusstagepaymentscanbespreadoveralongerperiodoftime.

Plus,buyerspurchasingneworoff-planalsoenjoyreducednotaryfees.

GETINTOUCH

Contactour

Alpineexperts

tolearnwhichresortsareinvestingheavilyintheirskiandnon-skiinfrastructure.

worldascentralbankstrytocurb

inflation.Higherinterestrateslead

tostrongercurrencies.But,withpolicymakersmovingatdifferentspeeds,itcreatesopportunitiesforsomebuyers.

TheEurozoneisalaggardinthisregard.TheEuropeanCentralBankisdoingacarefulbalancingactofkeepingahandleoninflationwithoutsnuffingouttheregion’sanaemiceconomicgrowth.CapitalEconomicsforecastsEurozoneinterestrateswillreachapeakof3%comparedto4.75%intheUSand5.0%intheUK.

TheUSdollarhasalreadyseenstronggrowthagainstseveralcurrencies,includingtheeuro.AUSbuyerlookingtopurchaseintheFrenchAlpsinOctober2022enjoyeda15%discountcomparedtoayearearlier.

WithcurrenciesacrosskeyemergingmarketsinAsia,theMiddleEastandLatinAmericaalsopeggedtotheUSdollar,buyersinthesemarketscurrentlyenjoyasimilardiscount.

12

SKIPROPERTYREPORT2023

WHATDOESABUYING

OPPORTUNITYLOOKLIKEIN

THEALPS?

Astheworldbracesitselfforabumpyeconomicrideoverthenextfewyears,buyersarekeentoknowhowbesttorideoutthestorm–whattypeofpropertyorresortwillprovemostresilient?

Afterall,withriskscomesomeopportunities.

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SKIPROPERTYREPORT2023

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SWISSRéSIDENCESHOTELIèRES

WhiletheprincipallawcalledLexKollersetsouttherulesandregulationsonwhocanbuywhattypeofpropertyandwhereinSwitzerland.AsecondlawcalledLexWeber,whichwasintroducedin2013,setsa20%caponthenumberofsecondhomespermissibleineachSwisscommune,therebyhelpingtoreducetheproportionofSwisspropertiesleftunoccupied.

Withmostresortsabovethislevel,thelawallowsallsecondhomesalreadyconstructedtoremainsecondhomesinperpetuity,however,nonewsecondhomescanbebuilt.Allnewconstructionsarethereforetobeprimaryresidencesonly.

However,somesecondhomebuyersinSwitzerlandaretargetinganewlyintroducedhotel-styleresidenceknownasa‘résidencehotelière’.ThisstyleofnewprojectispermittedundertheLexWeberregulationastheacquisitionisconsideredacommerci