Imagine this scenario. Every day, you start by skiing right from your doorstep and then wind down the day either in an open-air pool or sipping on glühwein at après-ski. During the summer months, you have the option of exploring the landscapes on your electric mountain bike or hiking the slopes you skied on earlier in the year. Seems pretty perfect, doesn’t it?
However, it is worth considering a few challenges. The impact of climate change on snowfall, stricter rules for foreign buyers, and exorbitant prices mean that acquiring a second home on these slopes isn’t for the risk-averse.
About 15 years ago, Giles Gale established Alpine Property Finders, a firm specialising in ski properties. At that time, a lot of their customers looking for property in Austria were from Ireland. But these numbers dwindled due to the economic recession. Currently, Gale is re-introducing his business to Ireland. A new sales office has been set up in Cork, and Gale, who was born in England, now possess an Irish passport, courtesy of his grandfather born in Derry.
Despite a smaller Irish market for international buyers in the Alps, according to Gale, it’s on the rise again. For Irish buyers, Gale notes that the primary motive for buying a property in the Alps is the lifestyle appeal and a place for family vacations. Any rental income is seen as a bonus that can offset financing costs and potentially lead to a cash flow neutral investment.
Gale further points out that approximately 80% of enquiries from Ireland are for properties in Austria. If you’d invest there, local laws require you to rent it out from time to time. Depending on the location you invest in, renting can bring profitable returns. As per a ski report by global agent Knight Frank, for example, a three-bedroom chalet valued around €1 million in the French resort of Chamonix could yield up to €80,000 gross income, with a net income of €40,000 before tax, assuming you rent out the property for 30 weeks of the year.
According to Gale, a common budget for property seekers is usually around €500,000 to €700,000. These individuals typically aim for two or three-bedroom flats in places like Portes du Soleil, France. This region encompasses resorts like Les Gets, Chalet, and Morzine, and is favourably located near the Geneva airport or the Salzburg region, including popular destinations like St Johann, Zell am See, and Kitzbuhel.
Gale also recognises that there are some clients with larger budgets, exceeding €2 million. An example is an Irish patron who purchased a serviced chalet in the Austrian resort of St Anton for approximately €2.5 million. However, Gale observes that the majority of the market operates within the €500,000 to €700,000 range. Clients usually have around €200,000 to €300,000 on hand and obtain finance for the remaining amount from a local bank.
Taking into consideration a notable requirement for a 40 per cent cash deposit, Gale notes that Swiss properties are not commonly sought after by Irish buyers essentially because of their higher price bracket – starting at roughly €1 million, coupled with the potential currency risk.
An overview of the market reveals that ski resorts have experienced significant growth in recent years, particularly in property prices. Despite fluctuating snowfall patterns, there has been a sharp 20 per cent increase in property prices post-pandemic from 2021 to 2022. However, as interest rates increased last year, prices began to soften.
Savills has produced a report on ski resorts, noting that the increase in interest rates has caused a decrease in investment. It stated that investors are likely to see a deficit in returns with anything more than a 50 per cent mortgage loan-to-value. For properties valued above €750,000, known as ‘prime’, prices have fallen by over 4 per cent within a year, even though they have still raised by 41 per cent compared to pre-pandemic levels.
The most highly priced resort appears to be the US resort Aspen, favoured by various Hollywood celebrities, including members of the Kardashian family, and real housewives of Beverly Hills, where the starting price is about €36,200 per square foot.
Switzerland, one of the priciest countries in Europe, is home to some of the most expensive ski resorts including such well-known ones as Verbier, St Moritz and Zermatt. France also has a strong showing with Val-d’Isere and Courchevel 1850, whereas Austria and Italy only have a handful of resorts on the top 20 list such as Lech, Mayrhofen, Kitzbuhel and lone Italian contender Cortina d’Ampezzo which will be hosting the 2026 Winter Olympics.
According to a report by Knight Frank, limited supply is playing a role in supporting price levels. Their data suggests a significant decline in properties listed for sale in Chamonix from 403 in 2019 to just 178 by 2023. Nevertheless, the effects of Brexit and local laws on overseas investors may not be as pronounced as originally anticipated due to this supply and demand balance.
Lower altitude resorts oddly remain popular provided they have access to high-altitude skiing. Nonetheless, UK property seekers now encounter hurdles when acquiring in the European Union. Buying in Austria now requires an EU passport and securing financing in France is challenging without a euro-based income.
Ski resort prices can fluctuate significantly as indicated by Knight Frank’s figures pointing to a drop of approximately 10% in 2009, with further decreases reported in 2015, 2017 and 2018.
A potential detriment to prices apart from rising interest rates could be fluctuating weather conditions. Surprisingly green scenes from Alps skiing photos this year attest to this change. A report by Nature Climate Change warns of erratic snowfall; it predicts that with more than a 2°C temperature rise, 53% of European resorts are likely to experience poorer snow cover. Consequently, resorts at higher altitudes, equipped with advanced snow-production technology or possessing north-facing slopes could have an advantage in preserving their standing.
The Ski Resilience Index by Savill utilises five indicators, including snowfall, reliability and altitude, to assess a resort’s performance and its adaptability in the face of climate change. In the global arena, Aspen and Vail, both located in the US, dominate the index. Zermatt in Switzerland and Val-d’Isere in France, on the other hand, are the top performers in Europe.
For those interested in purchasing property, a ski resort with an extended season would be ideal. Gstaad, according to Knight Frank, has the season lasting the longest – about 25.1 weeks, with Chamonix (23.1 weeks) and Val-d’Isere (22.1 weeks) trailing behind.
This, however, does not imply that your property search should be confined to high-altitude resorts. While altitude resorts come with a premium price and extended ski season, for those who are considering summer holidays and rental revenue, lower resorts might be suitable. Gale refers to Zell am See as a popular low-altitude resort thanks to its close proximity to a glacier.
Resorts that maintain a robust summer season are more likely to yield better rental returns. Even though the winter season may be slightly reduced, Gale suggests that resorts lower down may have a greater appeal during the summertime due to their extensive summer infrastructure.
Medium altitude resorts like Montchavin Les Coches in France may face struggles, Gale points out. Therefore, considering a resort that operates in both summer and winter can be a strategic move against climate change issues.
The Compagnie du Mont-Blanc, for instance, reported that almost 40% of Chamonix’s lift ticket revenue was made from May to October. Meanwhile, according to Knight Frank, approximately 44% of overnight stays in Crans-Montana, Switzerland in 2022 occurred during the summer.
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