Switzerland’s most exclusive ski resort knows no crisis. Prime property prices in St Moritz have seen a five percent rise year-on-year to reach up to €59,000 per square metre (£4,588 per square foot, $7,232 per square foot) in the highly sought after Suvretta-Hang hillside and €34,000 (£2,644 per square foot, $4,168 per square foot) in the village itself, according to a newly published report by Engels & Völkers.
Switzerland’s prime property market is benefitting from the global demand for safe assets and appetite for luxury real estate in the established Grisons resort is high. Supply, by contrast, is very limited partly by the strict planning rules and rigorous criteria governing new developments in the area, and partly by geography itself—St Moritz is bound by the Engadine lakes.
All these factors, explains Chiara Jankolow of Engel & Völkers in St. Moritz, “have resulted not only in sustained high prices on the property market but even price hikes in the uppermost market segment.”
Ultra prime properties on the Suvretta-Hang hillside are exchanging hands for as much as €40 million to €80 million (£33.48m-£66.9m, $52.78m-$105.56m), while those in the village’s most prestigious locations, such as Via Tinus, Via Brattas and Via Serlas, cost up to €20m (£16.74m, $27.39m).
This prime property in St Moritz is for sale through Engels & Völkers
Despite the restrictions on property sales to non-Swiss residents imposed in the Grisons canton, 90 percent of St Moritz property buyers come from abroad—particularly Germany, Italy, Russia and China. The vast majority are looking to purchase luxury real estate in the resort both for private use and as an investment. They are prepared to pay a premium for high specification chalets in central but quiet locations, especially if they have far-reaching views across the Alps.
“The standards of interested buyers are high, but there us also a willingness on their part to pay the price if their wishes are fulfilled,” says Jakolow. She believes that values will grow further in the future: “Taking into account the limitations of the market, increases in prices seem more likely. Superior properties in very good locations in St. Moritz will always be a good investment.”
Price rise for prime properties in St Moritz: http://t.co/BnhwAWQw Views from @EngelVoelkersCH
@Palathia reports on price rise for prime properties in St Moritz according to E&V study http://t.co/qHRXVVXv
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