"Ski resorts" are back in fashion

"Ski resorts" are back in fashion

Investors and buyers are returning to the property market in the Alps, after four years of price volatility. In the first half of the 2013 on the Austrian market witnessed a doubling of the number of sales, compared with the same period in 2012, and in the Swiss Alps the number of transactions increased by 57%.

In France, meanwhile, there is still skepticism about the real estate market on the ski resorts. This stems from prices sagging by 30% during the financial crisis, which scared off the British investors.

A recent study showed that 55% of ski resorts located in the Alps in 2013, rose in prices by more than 5% increase in prices, while the previous year 28% resorts showed five percent price reduction.

What is the reason for such successful the dynamics? The wealthy buyers returned to the market, restored economic stability, and the interest rates are still low.

Experts note influx of buyers from Russia, who make a half times more deals than the British, who in turn take up about a quarter of the market. 80 % of purchases are made in order to rent out the property.

Austria

Property prices have risen by 12.4% in 2012, and GDP grew by 5%, the number of tourists also increased, and the unemployment rate remains low. Equally impressive achievements support the prestige of Austria as the country where you can expect high quality for a reasonable price. The cost of the Austrian "ski resorts", on average, less than half than in neighboring Switzerland.

Switzerland

The cost of housing continues to grow steadily throughout Switzerland. Cheap loans, economic growth and immigration result in an increased demand for real estate. However, the new legal restrictions on housing (Weber's law) has led to a reduction in supply in the primary real estate market. There is a chance that the Swiss authorities should amend this law and make it less severe, but so far the primary housing prices continue to rise.

France

In France, the situation is not as rosy as in the previous two countries. The economy does not show a positive trend, lower credit ratings and sensational wealth tax negatively affected the real estate market in the country, reducing the buying activity. For the period from March 2012 to March 2013 there was a decline of sales by 19%. The good news is that real estate in the ski resorts of Megève and Chamonix increased by 5% after a reduction of 30% during the crisis.

Text: Ivan Ulitin, ee24.com