Knight Frank and Savills have published their yearly “Alpine/Mountain Property Report.” We have analyzed them for you and present a summary, complemented by our own analysis, in four chapters:
- The mountain real estate market facing climate change
- Investment opportunities in a sustainable and resilient future
- Growing international demand and its implications
- The position of Villars-sur-Ollon in the Alpine real estate market
This month, discover the first part of this analysis:
The Influence of New Consumer Trends and Climate Change
The impact of climate change on the Alpine market
The Need for Economic Adaptation in Mountain Regions
Mountain regions, particularly ski resorts, are facing an unprecedented reality: the urgent need to thrive rather than merely “survive” in the face of climate and economic upheavals. Historically, skiing has played a central role in the mountain economy, becoming a key driver for many municipalities and regions. According to Martin Deburaux, Director of Télé Villars-Gryon-Diablerets, this once stable and predictable activity will now take place over a shorter period—about 3 out of 12 months. This forces a rethink of ski lift operations, shifting revenue distribution from the current 1/3 of the year to 2/3.
Resilience Index and Climate Change
The impact of these phenomena on ski resorts varies significantly based on several factors, particularly altitude. The resilience index, highlighted in the Savills Ski Report, shows that ski resorts experience major fluctuations yearly due to unpredictable snowfall, temperature variations, and season duration. Generally, lower-altitude resorts face greater instability, with shorter and more uncertain snow periods. Conversely, higher-altitude resorts or those with glacier skiing, such as Villars, enjoy greater stability. Thanks to their elevation and access to suitable infrastructure, these destinations demonstrate increased resilience against changing climate conditions.
The Need for Adaptation
Villars exemplifies this resilience, leveraging its altitude and access to glacier skiing to mitigate the effects of lower snowfall. While other resorts in Switzerland and beyond experience significant declines in activity due to erratic weather conditions, Villars has maintained its position by adapting to these new climate realities. This raises questions about the future of lower-altitude resorts and how they must rethink their economic models to remain viable in increasingly unpredictable winters.
The Rise of New Consumer Trends
Focus on Summer Activities
In response to current climate challenges, many ski resorts have adapted by diversifying their offerings to become year-round destinations. Demand has shifted, with a growing emphasis on summer activities. This transition is particularly crucial for French resorts, which suffer from less reliable snowfall due to their relatively low altitude. Their resilience index fluctuates more than higher-altitude resorts, making the ability to attract off-season visitors essential for maintaining year-round economic activity.
The Importance of “Après-Ski”
In this context, après-ski, an integral part of the resort experience, plays a crucial role. European resorts, particularly in Switzerland, stand out for their après-ski culture, regarded as the best in the world. Beyond skiing, visitors now seek a comprehensive experience, including relaxation and social activities after a day on the slopes. This aspect has grown in importance over the years, with dedicated venues for wellness, gastronomy, and nightlife becoming key attractions for vacationers.
Factors influencing après-ski appeal include:
- Ski pass prices
- The number of spas, restaurants, nightclubs, and bars
- The average price of an Aperol Spritz and a hot chocolate
Ski accommodation factors:
- Average rental price for a luxury apartment (one week)
- Average rental price for a chalet (one week)
- Number of 4-star and 5-star hotels
Diverse Summer Activities: Sports and Culture
As previously mentioned, the increasing uncertainty surrounding snowfall and shorter winter seasons is prompting resorts to rethink their economic models. Those with the most fluctuating resilience indices tend to offer the best summer and cultural activities. Megève, for instance, despite experiencing significant variations in snowfall, has successfully attracted visitors year-round. In addition to winter sports, the resort emphasizes summer activities such as hiking and mountain biking while developing its cultural offerings with food festivals and concerts.
Conversely, despite Switzerland’s many high-altitude resorts, the country lags in summer tourism offerings. Swiss resorts, traditionally focused on winter sports, provide on average half as many summer attractions as their French counterparts. However, the Covid-19 pandemic has accelerated Switzerland’s efforts to diversify, responding to increasing demand for outdoor activities. Swiss resorts are now expanding their summer offerings to attract new visitors.
The Vaud Alps: Champions of Après-Ski
The Vaud Alps, home to Villars, have successfully capitalized on their natural assets to strengthen their summer offerings. With breathtaking views and easy access from Geneva, these mountains provide excellent infrastructure for hikers, cyclists, and outdoor enthusiasts. With an increasing number of events and a strong focus on the après-ski experience, the region is well-positioned to attract a diverse clientele, even outside the winter season.