In the pandemic, holiday apartments in the Alps are in greater demand. That drives up prices. Apartments in St. Moritz and Gstaad are particularly expensive.
Corona is driving up the prices for a home in the Alpine region.
Because in the pandemic, more and more people want to spend their holidays in the mountains.
In addition, real estate is a safe investment in times of crisis.
Travel restrictions make holidays in the Corona crisis difficult. That is why the Swiss spend their holidays more and more in the Alps. That drives up the price: In 2020, a holiday apartment in the mountains cost an average of four percent more than in the previous year, as a cross-border study by UBS shows.
The most expensive ski resort in Graubünden is St. Moritz: a holiday apartment currently costs just under CHF 17,000 per square meter. In second place is Gstaad in the Bernese Oberland. There you have to raise up to 14,600 francs per square meter for an apartment.
The Austrian winter sports center Kitzbühel and the French Courchevel with square meter prices of around CHF 13,500 are also among the most expensive holiday resorts in the Alpine region. While apartments in high-priced destinations rose, prices in cheaper destinations fell slightly, for example by around three percent in Flumserberg.
You can find out where other vacation rental prices have risen in the picture gallery above.
Real estate is a safe investment
It’s not just the Swiss who have discovered holiday homes in the mountains. Foreign buyers have also increasingly bought apartments in the local Alps. Because, according to UBS, Swiss real estate has a reputation for being a safe investment.
The price increase should continue this year. “But the rush for vacation homes will tend to subside again in the medium term,” it continues. As soon as the home office decreases again and travel abroad becomes easy, demand could even fall below the pre-Corona level.
Vacation homes are in great demand, but the second home also incurs substantial costs. Because holiday apartment owners only spend an average of around eleven weeks per year in their holiday apartment. Because of this low effective occupancy, the costs per week are relatively high and can amount to CHF 3,000, writes UBS. If mortgage, heating and renovation costs are included, a second home can cost between 20,000 and 30,500 francs a year.