THE ALLURE OF THE SWISS ALPS
The recent health crisis made people wrongly assume that growth in the value of ski property was in jeopardy, as the recent Savills Ski report showed that the appeal of the slopes is far from being extinct. Global ski visitor numbers have increased for the third successive year, and interest in ski property, both from consumers and investors worldwide, remains at its peak.
In the annual ski report, now in its 15th edition, Savills recognises the strong spirit of the slopes, and the unwavering appeal to purchase a property amidst mountain folds.
Throughout the pandemic, house prices proved to be extremely robust in many countries, especially in Europe, witnessing unprecedented rise in house prices. This is reflective of predicted growth in GDP. According to Oxford Economics, Switzerland is forecasted to achieve 18.3% growth in GDP over the next five years, making the fundamentals of a long-term investment look stable, and although the pandemic has had a bearing on travel, the lifestyle changes that people have made sets to benefit ski resorts in the long run. Many resorts are already preparing for this, with 73 new ski lifts set to open in the Alps in 2020/21 increasing the region’s total by 0.9%. Switzerland’s GDP forecast will also be supported by its attractiveness to international and domestic buyers, as well as its action against climate change through key initiatives.
A rising trend that has emerged from 2020 is a newfound appreciation for nature, and the ability to be outdoors. This is the very essence of a ski resort – offering clean air and open spaces to all. This appeal of mountain living or holidaying, in summer and winter, is a trend that is expected to continue long after the pandemic and attract a viable new customer base. Buyers looking to invest will also consider connectivity and distance to the nearest airport or train station. Davos, home to the Residences at the Hard Rock Hotel Davos, is a highly connected town, with fantastic transport links, and the ability to reach major cities by a comfortable drive or train. This is highly sought after, with many ski resorts having limited access due to high snowfall or limited transport links. The Savills ski report also notes the presence of branded residence schemes as a highly attractive feature in ski resorts.
Branded residences offer an assurance and guarantee of quality, with high-level hospitality services and amenities reflective of hotel living. These benefits, along with the generation of rental income, make investing in a branded residence an attractive prospect. On that basis, it is no wonder that the sector has experienced significant growth and rapid expansion in the past decade. The number of branded residences around the world has increased by 170%, and 2020 was set to be another record year with more than 100 new schemes opening. One of the most successful markets for branded residences has been alpine markets, which has increased by 86% over the same period. Residences at the Hard Rock Hotel Davos offers buyers the opportunity to invest in an apart-hotel scheme, with up to six weeks’ usage per annum, generating rental income beyond this.
With prime residential markets in Europe performing well, and the increasing wealth of high net worth individuals, branded residences offer enviable space and comfort with high levels of service and amenities that will be well placed to meet increasing demand.