On September 23, 2020 an article appeared in the Luxury Tribune entitled “Mountain Real Estate is Benefitting from the Crisis“. Here is a summary by Gérance Service.
While the health crisis due to COVID-19 has caused a slowdown in the global economy, in Switzerland, one sector seems to have escaped it: mountain real estate. What are the factors that promote this growth in the midst of a crisis? Update on a trend in the news.
Professionals in the industry have noticed that mountain real estate appears not to have been affected by the global health and economic crisis. On the contrary, thanks to the democratization of remote work, establishing one’s main residence in the mountains is on the way to becoming a real lifestyle. Digital nomads, international entrepreneurs, and executives at multinational corporations are among so many types of people who are looking for a larger space to be able to reconcile family life, leisure, and work.
The article states that demand is higher than it has been for five years. In the post-Lex Weber, post-LAT2 context, very few new properties have been built and existing ones tend to increase in value due to increased demand from Swiss customers.
Travel restrictions have certainly resulted in a decrease in the number of international buyers. However, those for whom the move could be made are serious buyers, for whom the conversion rates are high. In addition, among these purchases, many were made on the one hand by locals who wanted to move away from the big cities and on the other hand internationals unhappy with the way the crisis was managed in their countries of origin.
Mountain resorts like Villars have seen an increase in demand for apartments and chalets. For good reason, owners can live there and continue to be close to their place of work: cities remain easily accessible. This has resulted in increased demand for these goods, which are perceived as “havens”.
Depending on the buyers, the selection criteria vary although requests remain relatively similar when it comes to infrastructure: schools, proximity to ski slopes / hiking trails, and ski lifts, etc.
2021, a promising year?
The indicators suggest that demand will be maintained in the months to come. We imagine that as long as prices do not increase, demand will be maintained. Either way, this information will be interesting to follow as the current health situation evolves.
Source: Original Luxury Tribune article “Mountain Real Estate is Benefitting from the Crisis“