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Ski Property Report 2023 Summary

Core Content

The Ski Property Report 2023 provides a comprehensive overview of the current state and future outlook of the Alpine property market. It highlights the impact of hybrid working, sustainability concerns, and macroeconomic factors on buyer behavior and market dynamics. The report also includes insights from the Ski Sentiment Survey, which reveals key preferences and motivations of ski home buyers.

Main Points

Market Resilience and Growth

• The Alpine property market has shown resilience despite three pandemic-disrupted ski seasons.
• The Ski Property Index recorded its strongest annual increase since 2014, with a 5.8% rise in the average price of a four-bedroom chalet across 23 resorts.
• Swiss resorts outperformed French ones for the second consecutive year, with Crans-Montana and St Moritz leading the prime price index with 14% annual growth.

Hybrid Working and Lifestyle Shifts

• Hybrid working has increased demand for co-primary homes in the Alps.
• Buyers are prioritizing year-round resorts that offer a mix of skiing and non-ski activities.
• Proximity to ski slopes, amenities, and views are key considerations for most buyers.

Location Preferences

• 30% of buyers prefer a property within 90 minutes of an airport.
• 31% are willing to drive up to 3 hours from the airport.
• France remains the most popular destination, with 75% of existing owners and 50% of future buyers choosing it.
• Morzine and Les Gets in the French Portes du Soleil region led in price growth, with 11% and 9% respectively.

Property Preferences

• Mountain views, high-speed broadband, and outdoor space are the top priorities.
• Existing homes still attract more buyers than new-builds, but a significant proportion remains undecided.
• 44% of French new home buyers were unaware of the VAT rebate for new-build properties.

Sustainability and Climate Concerns

• 58% of buyers consider the long-term resilience of a ski resort (snowfall, temperature, season length) important or very important.
• 54% prioritize energy efficiency in their future ski home.
• 32% of buyers research resort investment strategies to future-proof snow provision.

Brexit Impact

• 45% of UK respondents said Brexit and the 90/180 day rule had made little difference to their purchase plans.
• 68% of UK respondents indicated that the rule had influenced their purchase plans to some extent.

Currency and Interest Rate Trends

• US buyers enjoyed a 15% discount when purchasing in France in October 2022 due to a stronger dollar.
• The Eurozone is lagging in interest rate hikes, with a forecasted peak of 3%, compared to 4.75% in the US and 5.0% in the UK.

Key Opportunities in the Alps

1. New-build homes in France offer a 20% VAT rebate if rented commercially for a minimum of 20 years.
2. Currency play allows buyers from emerging markets to benefit from the strength of the US dollar.
3. Swiss résidence hotelière is a new type of property permitted under Lex Weber, requiring rental when not in use.
4. Future investment in infrastructure by major ski companies can enhance rental returns and year-round appeal.
5. Land banking in France offers potential for development and profit, especially in areas like Chamonix.

Key Information

• New office openings: Knight Frank expanded its network with offices in Morzine and Crans-Montana.
• Ski Sentiment Survey:
  • 70% of respondents are actively looking to buy or considering a purchase in the future.
  • 30% seek a second home for rental investment.
  • 26% are looking for a property to use exclusively.
  • 54% prioritize energy efficiency.
  • 32% research resort investment strategies.
• Other Global Resorts:
  • Queenstown, New Zealand: Adventure capital with year-round activities, average property price around NZ$1.3 million.
  • Niseko, Japan: Popular for skiing and tourism, with no foreign buyer restrictions.
  • Cortina, Italy: Set to host the 2026 Winter Olympics, with prime prices ranging from €10,000 to €16,000 per sq m.

Conclusion

The Alpine property market is evolving, driven by hybrid working, sustainability concerns, and changing economic conditions. While growth is expected to slow in the coming year, the Swiss Franc and French affordability are likely to remain strong. Buyers are increasingly seeking properties that offer year-round appeal, sustainability, and investment potential, with a focus on location, amenities, and long-term resilience.