Increased demand in vacation apartment markets in the Alpine region

The "UBS Alpine Property Focus 2024" report provides a detailed analysis of the vacation apartment markets in the Alpine region, with a particular focus on our Graubünden business area. Since the pandemic, demand for vacation apartments in the Alps has risen sharply, which has led to a significant increase in prices. In Graubünden, prices rose by an average of just under 6 percent, with Arosa recording the highest price increase of 18 percent. Here is the most important information on the market areas and regions in which we are active:

Date

29.5.2024

Author

gin001-s

St. Moritz:

St. Moritz remains one of the most expensive destinations in the Alps, although prices fell slightly by 1.1 percent last year. The price per square meter for a vacation apartment is over CHF 21,000. The high international appeal and the limited availability of real estate are keeping prices at a high level. The market benefited from a construction boom after the second home initiative, but this led to increased vacancy rates until the market recovered due to strong foreign demand and extensive renovations.

Lenzerheide:

Lenzerheide recorded a strong price increase of 5.1 percent last year, with the price per square meter standing at CHF 16,000. The region benefited from increased demand for vacation apartments and a significant decrease in available properties. The weak price phase of recent years was overcome by strong demand and prices reached historic highs. Price trends are likely to have been even more positive, particularly in the best locations.

Arosa:

Arosa experienced the strongest price increase of all the destinations analyzed, with a rise of 17.6 percent last year, bringing the price per square meter to CHF 15,900. The connection with the Lenzerheide ski area and the high snow guarantee made Arosa an increasingly popular vacation destination. The low vacancy rate and the low level of new construction activity also contributed to the price increase.

Davos/Klosters:

In Davos/Klosters, prices rose by 3.7 percent to CHF 15,500 per square meter. The region benefited from high demand and a significant reduction in vacancies. The conversion of older apartments into second homes and a slight recovery in building permits for first homes contributed to this development. However, the growing number of apartments for sale could curb future price increases.

Flims/Laax:

Flims/Laax recorded a price increase of 3.7 percent last year, with the price per square meter standing at CHF 16,400. Prices have risen by more than 40 percent since the beginning of 2020. The region benefits from a low tax burden and good accessibility to workplaces in Zurich and Zug. The strong demand for primary residences led to a significant decline in vacancies and supported the price trend.

Overall, the report shows that demand for vacation apartments in Graubünden remains strong, although some factors such as high prices and economic uncertainties could dampen demand in the future. The region remains attractive for buyers of vacation properties due to its wide range of tourist attractions and good accessibility.

For more detailed information on the individual markets, please refer to our market reports.