The newspaper Le Temps published on December 11 an article titled “In the mountains, demand is reaching peaks”. What are the effects of the COVID-19 pandemic on mountain property prices in the Villars region in 2021? Analysis:
Dreams of nature and preferences for domestic holidays
In alpine ski resorts, the annual Knight Frank report notes real estate prices rising at a rate of 3 to 4 times greater than the previous year’s increase.
There are several reasons for this: the inability to go on vacation abroad, desire to be in nature with an abundance of space as has been exacerbated by the pandemic and the limited supply of housing.
The average price per square meter has exploded, reaching 24,500 francs in Verbier, where a property recently sold for a record rate of 30,000 francs per square meter.
Different increases depending on the resort
In high-end resorts such as Verbier, Zermatt and Crans-Montana, demand has doubled or even tripled and supply is struggling to keep up.
The situation is different for resorts with a more varied offer, as is the case with us in Villars-Gryon. The observed price increase there is closer to 3% and many properties are still available for sale.
However, we see that homes are being sold that would not have found a buyer in the past. In addition, sellers are releasing property that they had previously withdrawn back onto the market.
Will this trend continue?
Experts believe that the effects of COVID on mountain property prices are likely to prove to be specific to 2021, with rates expected to return to normal once the pandemic has passed. More properties are expected to hit the market; those that are currently rented out to cater to tenants looking for nature, for example.
Will this new supply be enough to meet demand? The answer remains unclear. According to some experts, the effects of the Lex Weber should not be long in being fully felt: this law limits individual’s possible number of non-primary residences. The stock of construction projects that were launched before the law became effective will soon be sold out. Experts therefore anticipate that this supply will not be renewed, despite a demand which continues to increase.
Source: Le Temps, Saturday 11 December 2021