Second homes in Davos and Klosters: Prices for top properties rise by 20%

1.Engel & Völkers_Arosa

- Engel & Völkers anticipates further price increases
- Largest buyer group is based in Zurich
Hamburg/ Davos, 10 December 2013. At premium addresses in Davos and Klosters, Engel
& Völkers has observed price rises of up to 20 percent for prestigious holiday homes since the
so-called second home initiative came into force. “People looking for a holiday home in these
ski regions are particularly interested in high-quality equipment, a location close to the slopes,
plenty of hours of sunshine and good views. Buyers pay exceptional prices if it means acquiring
the exceptional,” said Jan Christmann, Managing Director at Engel & Völkers Davos.
The number of holiday properties coming onto the market in many Swiss ski resorts, including
Davos, is set to become even more limited in future – as a result of the second home initiative,
which passed into law in March 2012. This is due to the fact that the current proportion of
second homes is already more than 20 percent, which is the maximum stipulated by the initiative.
This means that currently no more new holiday homes may be built in the sought-after
ski resort. Only those development projects where planning permission had already been
granted are still going ahead. This is leading to increased pressure on demand for second
homes in such desirable locations as Mattastrasse, Palüdastrasse and Dischmastrasse, which
were scarce in supply in any case. Klosters, Arosa, Lenzerheide and Flims Laax Falera also
boast desirable addresses for second homes. The largest buyer group in these regions has a
permanent residence in Zurich and the surrounding area. International clients from Germany,
the Netherlands and England are also demonstrating a confidence in the stability of these
property markets.
Up to 20 million Swiss francs for a chalet
The demand for holiday homes is exceeding the supply by far in all the aforementioned ski
resorts, meaning that prices remain at a high level. The prices per square metre for freehold
apartments in Davos and Klosters currently range from 11,000 Swiss francs (approx.
8,992euros) to 20,000 Swiss francs (approx. 16,350 euros) for homes in very good locations.
Apartments with 2.5 and 3.5 rooms priced at between 850,000 Swiss francs (approx. 694,882
euros) and 1.5 million Swiss francs (approx. 1.2 million euros) are particularly sought-after,
especially those that are close to the slopes with good accessibility. Classic chalets in peaceful
and sunny locations like the Maranerhang in Arosa are equally desirable. In Klosters, Engel
& Völkers brokered a chalet this year for approximately 9 million Swiss francs (approx. 7.3
million euros). Prices of up to 20 million Swiss francs (approx. 16.3 million euros) are also
being paid for outstanding properties in absolutely prime locations.
“This development is a clear indication that the prices for freehold apartments and detached
homes will continue to rise in the coming years,” said Mr. Christmann. The limited number of
holiday homes is having a stabilising impact on the value of existing homes. Residences are
set to remain a secure capital investment, particularly in prime locations.

 

Caption:
(Source: Engel & Völkers)
1. Homes with a traditional architectural design such as this 350 square metres “Maissen” chalet
at a quiet location in Arosa rank amongst the most sought-after holiday properties in Swiss
ski resorts. Engel & Völkers is currently brokering this property with three living units for 5.45
million CHF (4.4 million euros).

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