Kate Everett-Allen

Do your property homework before heading for the slopes

Skiing as a pastime is now more accessible than ever but for those seeking a home in the Alps, particularly in Switzerland, the market is far from all-inclusive. Recent rules and regulations setting out who can buy what, and where, means it pays to do your research.

In the 12 years I’ve worked in Knight Frank’s international research team one of the biggest challenges has been keeping abreast of the new policies, taxes, and referenda that buffet the housing markets in the 55-plus countries that we monitor. Nowhere is this more challenging than in Switzerland. The Swiss, it would seem, love a referendum.

In 2012 Switzerland passed a new law – ‘Lex Weber’ – which imposed a 20 per cent cap on the number of second homes within any Swiss commune. This law (the finer detail of which has only recently been published) combined with Lex Koller, a law in force since 1983 which restricts non-resident buyers to certain ‘holiday zones’, means prospective buyers not only need detailed knowledge of the country and its zones but some expert guidance.

Nevertheless, the rewards can be significant. Although foreign buyers in Switzerland are faced with a higher entry cost due to the resilience of the Swiss Franc, the country offers unrivalled levels of privacy and security. Add to this the fact that the authorities have tinkered with the fundamentals of the open market by constraining supply and it suggests values are likely to be supported for the foreseeable future.

Perhaps it’s not surprising then that the Swiss resort of Gstaad came out on top in Knight Frank’s Alpine Property Index which tracks the movement of luxury residential prices in top ski resorts. Prices in the Swiss resort surged 13 per cent in the year to June 2016, driven in part by a lack of quality stock.

Already a subscriber? Log in

Keep reading with a free trial

Subscribe and get your first month of online and app access for free. After that it’s just £1 a week.

There’s no commitment, you can cancel any time.

Or

Unlock more articles

REGISTER

Comments

Don't miss out

Join the conversation with other Spectator readers. Subscribe to leave a comment.

Already a subscriber? Log in