Gstaad comes in second behind St. Moritz in the market rankings for holiday apartments in the Swiss Alpine region. However, the impression is that the local region will soon take the lead. By contrast, second-rate locations are experiencing a price slump.
According to a UBS study published earlier this year, two contrasting trends have emerged over the last year in the property market for Swiss Alpine locations. First-class regions like Gstaad enjoyed a price increase of 11.3% per square meter for high-standard apartments. The Lenzerheide is an example of a second-class location and, by contrast, it saw a 7% price drop.
Gstaad will soon be more expensive than St. Moritz
St. Moritz and Gstaad are at the top of the league table, with square meter prices of CHF 15,700 and CHF 15,000 respectively. The Engadine’s location prices have fallen by almost one percent over the past five years. However, it’s still 2.2% more expensive than Gstaad. As various sources report, holiday apartments in Gstaad could soon be more expensive than those in St. Moritz.
Empty properties cause price squeezes
UBS authors cite one of the reasons for the price gap as a higher proportion of vacant apartments in less expensive areas, with a figure of 3.6%. These areas are strongly affected by the dwindling population, leading to a property surplus. Top locations have significantly fewer vacant properties, with an average rate of 2.5%.
Based on AvS / Sara Trailovic
Translated by Justine Hewson