Savills World Research International Residential

Spotlight Alpine Property Market 2015/16

savills.com/research 2015/16

Spotlight Tignes

Alpine Property Market 

Navigating the property landscape of the Alps, summary and beyond

hose Alpine home the right property and the right owners who have resort, depending on the length acquired property of ownership intended, whether The Alps are host to the world’s in one of the most investment is for capital growth, popular prime locations income, a mixture of both – or just largest ski market, attracting 44% Tof Switzerland in recent years may for pleasure. of global ski visitors annually. 04/05 be experiencing mixed emotions, depending on whether they want to Added to these decisions are the sell in the near future or not. Having questions of what is happening to invested in one of the more recently demand for Alpine property generally buoyant Alpine markets and, more and how this interacts with supply. importantly, having invested into It seems inevitable that new markets a Swiss franc denominated asset, need to be found and/or resorts A strong Swiss franc has made they will most likely have seen need to adapt and broaden their some currency appreciation. appeal to wider markets than winter- Swiss property expensive to time downhill skiers, if their value is foreign buyers. A weaker euro poses However, the strength of the franc to be maintained. buying opportunities. 06/07 now means there are fewer non-Swiss buyers in the market and they will This publication attempts to guide be noticing higher maintenance and Alpine home buyers through the servicing costs. Meanwhile, cheaper buying landscape and traverse the properties in France and Austria may slopes of ski property investing. It have been letting well and providing highlights some of the global factors good euro income but appreciating at work in determining ski demand The recovery led by ultra-prime resorts less in capital value. and then highlights some of the spreads to the rest of the region. property and resort characteristics All this illustrates the perils and which will help to weather the Infrastructure investment spurs profits of owning Alpine real estate snowstorms and ensure maximum new development. 08/09 and the necessity of choosing enjoyment on the piste. n

 Will resorts need to broaden their appeal?

US ski resorts are poised to benefit from an over-spill of demand following strong recovery in the residential markets of US cities. 12/13

From the Balkans to Japan, ski markets Notes about the publication to watch in the coming decades. 14 This document was published in September 2015. The data used in the charts and tables is the latest available at the time of going to press. Sources are included for all the charts.

savills.com/research 03 Spotlight | Alpine Property Market 2015/16

Ski market Over recent years, France and In spite of this, Switzerland boasts let for most of the season, real estate are two large resorts with especially FIGURE 3 Austria have seen growth in more prestigious ski resorts, and values are likely to reflect falling long seasons (168 days). France Ski Value Index trends attendance, whilst Swiss resorts have attracts more wealthy skiers from accommodation costs. But in locations also contains some of the world’s experienced a steady decline, due across the globe than any other where real estate is rarer, high quality best infrastructure and is the only Kilometres of to an ageing domestic population, country. The top tier Swiss resorts, and scenic property will be more of a developed skiing destination in the Country Resort piste per euro The Alps are home to 35% of the and a trend for foreign skiers (who together with a few French and long term capital hold. world that is predominantly owned of ski pass world’s ski resorts and attract 44% account for half the Swiss market) to Austrian locations, are frequented by one dedicated skiing maintenance of global ski visitors annually. The opt for cheaper euro denominated by celebrities, European Royalty In short, we envisage a two-tier Alpine operator, Compagnie des Alpes. Chamonix 2.7 largest and most mature of all global resorts. The un-pegging of the and business magnates. They are market developing until visitor numbers Morzine 2.6 winter sport markets, they are host to Swiss franc from the euro earlier well established destinations for the start to increase again. On the one Cost of skiing 82% of the world’s largest ski resorts, this year (see page 7) may put global super rich, both to ski and hand, exclusivity and rarity will hold The largest Alpine resorts span several Mayrhofen 2.6 that attract more than a million further downward pressure on Swiss to buy property. There remain fiscal value and on the other, falling income valleys. The Three Valleys in France is visitors each season. attendance figures. advantages to property ownership and returns, in locations subject to most one of the largest connected ski areas Méribel 2.1 or residency in Switzerland. competition and unable to increase in the world. Courchevel 2.1 market share, may see values fall. FIGURE 1 The United States is the world’s largest Buyers of Alpine homes will need to French resorts deliver the best La Plagne 1.5 Largest global ski destinations, 2014 ski market (Figure 1), with 56.9 million review the fundamental qualities of the value for a ski pass with an average n Domestic skiers n Foreign skiers ski visits in 2014, closely followed by resort into which they are buying in of 1.7km of piste for every euro spent Verbier 1.4 France, with 55.6 million. The Swiss order to assess which will be winners on a ski pass compared to just 60 Megève 1.2 market is half the size of the French and which losers. 0.85km in Switzerland. Even and Austrian markets (25.5m visits), accounting for a stronger Swiss franc, Tignes 1.2 50 but is significant in that it is focused at Resort conditions the disparity between France and the premium end. Physical conditions and resort Switzerland is significant. Val d’Isère 1.2 40 infrastructure play a key role in Bad Gastein 1.0 Skier flows determining the quality of a ski resort, Germany has one of the biggest While the majority of skiers undertake and in turn the depth of market for skiing populations with 14.6 St Moritz 1.0 30 the sport in their home region, given accommodation – whether to rent or million national skiers, but being its compact size, Europe stands out buy. We have analysed 35 resorts on the periphery of the Alps, has a Davos 1.0 20 as the market with the most cross in the Alps by looking at the resort flatter terrain relative to its Alpine Klosters 1.0 border flows. Austria has more foreign size (number of guest beds) and ski neighbours. Because of this, German 10 skiers than domestic ones, making conditions (average monthly snowfall skiers prefer neighbouring Austria as Zermatt 1.0 Ski visits 2013/2014 season (millions) it the third biggest market globally, and season length), as shown in fig 2. their skiing destination. The majority Saalbach 0.9 0 with 51.9 million skiers, 66% of whom of their resorts are relatively small and USA France Austria Japan Italy Switzerland Canada Germany come from abroad. In general, French resorts are large in some cases it its more common to Grimentz 0.8 Source: Laurent Vanat with good snowfall and long seasons, buy a one day or a weekend ski pass In spite, having relatively limited extending the rental potential of rather than the usual six day pass Gstaad 0.8 ski options in their home country, property. Meribel and Courchevel favoured in the larger resorts. n FIGURE 2 Germany has the largest number of Villars 0.8 skiers globally (14.6m), the majority  Chamonix tops the Ski Value Index Resort size and ski conditions Kitzbühel 0.7 ● Austria ● Switzerland ● France ● Italy of whom ski in Austria. The UK has the world’s fifth largest number of Andermatt 0.7 Austrian resorts are Swiss resorts offer a range of French resorts are smaller with long seasons conditions and a good non-ski offer larger with reliable snowfall national skiers (6.3m). Aside from some indoor skiing, the UK market is Zell am See 0.6 190 almost entirely outbound, with France Kitzbühel Sölden 0.6 the favoured destination. 180 Cervinia Cortina d'Ampezzo 0.5 Challenges in Europe persist. With 170 Meribel Courchevel the populations of major European Crans-Montana 0.5 Flims Saas-Fee Obertauern markets stagnating, ski markets are 160 Solden unlikely to benefit from significant Livigno 0.5 Ischgl Verbier Livigno Tignes growth in the medium term. At the Obertauern 0.5 150 Val d'Isere same time, new markets in Eastern Klosters Davos Europe are modernising and opening Passo Tonale 0.5 Nendaz 140 St Anton Zermatt up to the west, which will further Zell am See Lech Gstaad dilute demand across the region. Courmayeur 0.4 Season length (days) Saalbach St Moritz Crans La Plagne Flaine 130 Montana Conversely, economic recovery in the Saas-Fee 0.3 Wengen Grindelwald Bad Gastein major source markets (most notably 120 Megeve Morzine the UK), should drive visitor demand, Madesimo 0.3 60,000 Chamonix and in turn, home buying activity. Courmayeur 110 guest beds Brauneck / Lenggries 0.2 This competition means that skiing Oberjoch Bad Hindelang 0.2 100 should become a less expensive 48 68 88 108 108 128 148 168 holiday option in all but the most select Spitzingsee - Tegernsee 0.2 Average monthly snowfall (cm) locations in coming years. In locations Source: Savills World Research, Igluski, Onthesnow, Bergfex, Ultimate-Ski where chalets and apartments are Source: Savills World Research

04 savills.com/research 05 Spotlight | Alpine Property Market 2015/16

The Alpine was amplified in Europe by the This has made Swiss property more The city’s prime markets are driven subsequent severe impacts on its expensive for foreign purchasers (see in part by foreign buyers, particularly market in housing markets. Some of the more The Impact of Currency panel). those from Eastern Europe and the The impact of currency buoyant markets in recent years CIS. Economic sanctions in Russia the European have been non-euro denominated The costly franc has led to a fall in and ongoing troubles in Ukraine have Swiss franc strengthens while the euro declines housing (namely the UK and Switzerland), exports, contributing to a cooling of contributed to a decline in transactions benefiting from their position the Swiss economy. Low population at the top end of the market. The Swiss franc has long been considered a safe haven currency, and high volumes of foreign context outside the Eurozone, although their growth is forecast. The country’s buying during the Eurozone crisis led the Swiss National Bank to introduce a cap on its value performance has since diverged. strict citizenship system coupled The market is a rental one (41.5% of the against the euro. In January of 2015 this cap was removed, and the Swiss franc quickly with the recent Lex Weber initiative households rent their home), and rents appreciated, making Swiss property more expensive for non-CHF denominated purchasers. The residential markets of Alpine Switzerland (see p.9) will serve to restrict foreign continue to rise – average rents plus Conversely, it has made selling more profitable for non-resident vendors. resorts are driven first and foremost Switzerland’s residential market has investment. Together, we anticipate running costs are up 29% since 2008. by second home purchasers and seen steady growth during the last price falls at a national level in the The euro, meanwhile, has depreciated against major currencies since 2014, including the US investors, but are also influenced by seven years. Safe-haven fundamentals medium term. France dollar and UK pound. The ECB’s quantitative easing program, anticipated US interest rate rises national trends. To fully understand and prudent economic management The French residential market in the medium term, along with the Greek crisis, have all contributed to the euro’s decline. This their drivers therefore, it is necessary underpinned demand in a supply Austria ‘double-dipped’, recovering to a makes French and Austrian property cheaper to both USD and GBP buyers, down more than to examine the underling market in the constrained residential market. But Austria witnessed a period of 2011 peak within two years, but has 6% in currency terms. country that shape them. last year has seen the market slow. In exceptionally strong residential followed a downward trend since. January of 2015 the Swiss franc was price growth at a time when many While prices remain suppressed, FIGURE 6 Although originating in the USA, decoupled from the euro, appreciating other Eurozone markets were falling. transaction levels across France have the North Atlantic debt crisis against other leading currencies. At the national level, prices have rallied 35% from a 2009 low, spurred Worked examples increased by 41% since 2008, by record low mortgage rates. Foreign Foreign Currency FIGURE 4 compared to falls of 0.9% in France In local currency currency Country Example shift (Jan- over the same period. Residential Challenges lie ahead in currency equivalent equivalent National house price performance: key Alpine markets vs UK Aug 15) markets were driven by record low consolidating public finances, Jan 15 Aug 15 n Year to Q2 2015 n Since 2008 interest rates, and supported by low improving competitiveness and 50% levels of unemployment in a resilient reducing unemployment. Weak domestic economy. economic growth is forecast, which CHF €8.7m  €9.7m 41% will bear down on the country’s real Switzerland 10.5m 40% 11.2% The market has since slowed, with estate markets, although a change Euro buyer € prices appreciating by just 1.2% in the of rhetoric in President Hollande’s 30% year to Q1 2015. Vienna, which had policies toward the wealthy has led price growth, has since slowed too. helped the prime sector. n France €5.5m $6.6m  $6.2m 20% 16% -6.1% USD buyer $ Price growth 10% 10% 4% 1% 1% 0% Austria €4m £3.1m  £2.9m Low mortgage rates have -6.2% -3% -1% Switzerland’s residential GBP buyer £ -10% market has seen steady increased transaction Austria Switzerland UK France growth over past 7 years levels across France Source: Savills World Research Source: OeNB, Statistik, SNB, Land Registry, INSEE, Savills World Research

 Switzerland FIGURE 5 GDP growth forecast: key Alpine markets vs UK

n Austria n Switzerland n France n United Kingdom

3.5%

3.0%

2.5%

2.0%

1.5%

GDP YoY Growth GDP YoY 1.0%

0.5%

0.0% 2011 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Oxford Economics, Savills World Research

06 savills.com/research 07 Spotlight | Alpine Property Market 2015/16

The resort France Ultra-prime ski resorts FIGURE 8 RESORT TRENDS Sales volumes in the ski regions A home in a top-tier Alpine resort Ultra prime resorts price league markets of Haute-Savoie and Savoie have is a key component of global 92% n Switzerland n France n North America Switzerland held up better than the rest of France, property portfolios for the world’s purchase for both own Buying activity in the Swiss resorts whilst a weaker euro has opened wealthiest individuals. A property in Resort Price per sqm Focused on France, Switzerland use and investment has cooled in 2015. Foreign buyers, up investment opportunities for UK Courchevel 1850, Gstaad or St Moritz and Austria, but also including Italy, especially important to the top end of buyers. Prime prices across resorts complements a city residence in Courchevel 1850 € 31,340 Germany, Slovenia and Liechtenstein, the market, have been impacted by are now recovering to pre crisis London, Paris or Moscow. the residential markets of Alpine a strong Swiss franc. In the medium levels but are still notably below Gstaad € 31,220 resorts are as diverse as the countries term Lex Weber will put a cap on the neighbouring Switzerland. Ultra prime resorts offer much in which they are located. number of second homes available more than just skiing. Quality dining St Moritz € 30,900 Top Swiss resorts attract to purchase in some markets, which Courchevel 1850 remains one of (Courchevel offers seven Michelin They range from the ultra-exclusive, may in turn push up prices in the the most desirable ski resorts in starred restaurants alone) and luxury Zermatt € 29,070 ultra-prime resorts of Courchevel 1850, purchasers from US, Russia, face of limited supply. Europe with outstanding facilities and shopping are the norm. St Moritz offers Gstaad and St Moritz, to mainstream Hong Kong & Malaysia infrastructure. Ultra prime prices here polo, Verbier quality night-life, and resorts such as Grimentz, La Plagne Swiss resorts offer premium are the highest in the region (Figure 8). Gstaad highly regarded international Verbier € 26,450 and Obertauern. Prime prices in facilities and investment in Val d’Isere, popular with the UK and schools. The concentration of High Courchevel 1850 are 93% more infrastructure continues. Grimentz international market, has seen new Net Worth Individuals also make these Vail € 25,200 expensive than the Alpine average, gained a new lift in the 2014/15 premium restaurants and boutiques important places in which to build and in Andermatt and Zermatt they are season, linking it to neighbouring open. There is rental potential, and strengthen professional networks and Meribel € 21,630 75% and 72% higher respectively. Germans are important Zinal, and new apartment schemes yields for top end chalets are circa undertake business among peers. Austrian resorts are cheaper on have followed. Andermatt has 3.5% gross. Val-d'Isere € 19,700 average, Obertauern is 55% below to the Austrian market benefited from huge investment, Courchevel tops our ultra prime price the Alpine-wide benchmark. with the new Chedi Hotel an 18 hole Chamonix continues to see recovery, league, with typical prices of €31,340 Megeve € 17,530 golf course and 400 residential units. and prices are now at or around the psm. The French ultra prime resort Additional home buying across This has pushed prices to levels seen pre crisis peak of +/- €10,000 psm for is followed by the premier Swiss Whistler Blackcomb € 16,860 the region peaked in 2007/8, with in Switzerland’s more established prime chalets and apartments. This destinations: Gstaad, St Moritz, transactions declining significantly prime resorts. large, accessible resort is popular with Zermatt and Verbier, at between Source: Savills World Research during the recessionary years. Price Brits are major players in British buyers, who have been assisted €26,450 and €31,220 psm. In spite of falls in most resort markets were both Austria and France Villars, a year round resort with in 2015 by the comparative strength of limited price growth, a strong Swiss not realised as owners rode out the quality international schools, has sterling against the euro. franc has pushed these markets up the market until recovery, which began in seen high levels of new supply in rankings in currency terms. 2013 and was led by prime property. recent years and suffered from poor Austria Switzerland Recovery has been supported by 42% snowfall. This has impacted pricing The Austrian Alpine resort market For comparative purposes we have improving economic conditions in the and there are deals to be done for remained strong over the downturn, included two premier North American Policy and planning trends major source markets, most notably The majority of purchasers those who shop around. Prime offering excellent value for money resorts, Vail and Whistler. Only the UK, and a renewed appetite for are aged 40-49 apartments trade at between CHF compared to the more established Colorado’s Vail is on par with the top The Lex Weber law limits the number of second second homes. 10,000 and CHF 12,000 psm. French and Swiss resorts. With European competition at €25,200 homes in Switzerland, aimed in particular at tourist continued investment in resort psm. Demand from America’s super regions. The initiative was led by environmentalists infrastructure and growing foreign skier rich and limited supply keeps prices who want to prevent excessive development in FIGURE 7 participation levels there is still more at a premium. Ultra-prime prices in mountainous areas. Lex Weber severely curtails Prime property price premiums and discounts by resort headroom for upward price movement. Whistler, the largest resort in North new development and will have the effect of pushing n Switzerland n France n Austria America, stand at €16,860 psm. n additional home buyers into existing stock, which in Many Austrian resorts are dual season. turn may drive up prices. 120% Zell am See property prices continue 100% to rise due to high demand and low As of January 2013, cantons must ensure that the 80% supply, but still represent value for second homes inventory does not exceed 20% of money. Prices range from €5,000- the total housing stock in the municipalities. Those 60% €7,000 psm. A planned lift linking Zell that are already over the 20% cap are particularly 40% am See to neighbouring Saalbach will hard hit, given there is no further headroom for new 20% only serve to increase its appeal. development. The government has indicated some leeway for these municipalities – redevelopment 0% Kitzbuhel stands apart with its designer The Austrian Alpine of barns or dilapidated hotels may be permitted, -20% boutiques and premium hotels. Home resort market remained for example – but the scope for new large scale -40% to the famous Hahnenkamm downhill development is limited. race and popular with celebrities, -60% strong over the downturn

Price premium / discount to all resort average / discount to all resort Price premium property prices are the highest of any Restrictions already apply to foreign nationals buying -80% Austrian resort, ranging from €10,000- holiday homes in Switzerland. The Lex Koller law caps €15,000 psm. the number of non-resident buyers to 1,500 per year. Flims Flaine Villars Davos Verbier Gstaad Meribel Nendaz Zermatt Megeve Morzine Morgins Wengen Klosters Permits are split up between the Swiss Cantons, the St Moritz Grimentz Kitzbuehl Saalbach Saas-Fee La Plagne Chamonix Champery Andermatt Val-d’Isere Obertauern Zell am See Grindelwald

Bad Gastein majority allocated to the south-west region: Bernese

Crans Montana Oberland, Valais and Vaud – the areas in which many Courchevel 1850 Courchevel Courchevel (other) Courchevel “Swiss resorts offer premium facilities and of the ski resorts are concentrated. Switzerland France Austria

Source: Savills World Research investment in infrastructure continues”

08 savills.com/research 09 Spotlight | Alpine Property Market 2015/16 the alps: resort market snapshots

Average asking price per square metre, resale apartments St Anton €12,000 + Prime purchase price range: €8,000 to €12,000 €7,000 - €10,000 psm €4,000 to €8,000 Pistes: 340km Less than €4,000 6 day lift pass: €252 Popular with: Party goers

St Anton is renowned for excellent Chamonix Crans Montana après ski entertainment. Popular with Germans, Brits and Russians, Prime purchase price range: Prime purchase price range: it is well-suited to the advanced €8,000 - €12,000 psm €5,000 - €10,000 psm skier, thanks to its off piste trails. Typical ultra-prime price: Pistes: 762km GERMANY Constant re-investment ensures €18,000 psm 6 day lift pass: €293 St Anton has world class resort Pistes: 140km Popular with: Extreme skiers, infrastructure; it boasts 97 lifts. mountaineers 6 day lift pass: € 267 Popular with: Russians, Garmisch – Partenkirchen Chamonix is one of the oldest ski Sir Roger Moore destinations in the French Alps. Kitzbühel Saalbach A steep resort with a vertical drop For the most part a beginner to Austria intermediate ski resort, Crans has of nearly 2,800m from it’s highest Zell am See lift at 3,777m, it is popular in the its own golf course and casino, Lech / St Anton summer with hikers and climbers. making it a popular all year around destination. Restaurant menus in SWITZERLAND Davos / Obertauern With most of the slopes located Ischgl Mayrhofen Bad Gastein above 2,000m, snowfall is reliable. Russian accommodate a wealthy Klosters Chamonix is a large resort, but the Russian community. Predominantly Sölden centre is traffic free. a prime resort, prices range between €6,000 and €12,000 psm. Flims Grindelwald Cortina d’Ampezzo Wengen Andermatt Gstaad St Moritz Villars Champéry Nendaz Crans-Montana Morzine Grimentz Saas-Fee Flaine Verbier Zermatt ITALY St Gervais Chamonix Megève Zermatt Tignes Mayrhofen Cortina d’Ampezzo Garmisch – La Plagne Prime purchase price range: Partenkirchen Prime purchase price range: Val d’Isère €10,000 - €16,000 psm Prime purchase price range: Prime purchase price range: < €13,000psm Courchevel Typical ultra-prime price: < €6,000 €10,000 - €15,000 Prime purchase price range: Pistes: 300km Tignes €25,000 psm Pistes: 600km Typical ultra-prime price: €20,000 < €5,000 6 day lift pass: € 260 Méribel Pistes: 360km 6 day lift pass: €231 Pistes: 140km Pistes: 280km Popular with: Groups 6 day lift pass: €357 Popular with: Young professionals 6 day lift pass: €256 6 day lift pass: €252 Popular with: European Royalty, Popular with: Italian fashion icons Popular with: Cross country skiers One of the highest resorts in the Sir Richard Branson Host to the ‘Snowbombing’ music Alps, Tignes benefits from reliable festival as well as the Altitude Cortina is a prime Italian resort, well Located in the Bavarian Alps, this snowfall and long seasons. The FRANCE Linked with Cervinia in Italy, this Comedy Festival, Mayrhofen is served by boutique shops, bars is one of the most popular German resort was largely developed in the traditional resort benefits from over one of the more established resorts and restaurants. Cortina was once resorts. The resort town offers après 1960s, and is currently benefiting 360km of piste. With excellent in Austria. The 600km of piste a playground for Sophia Loren and ski activities, over 100 restaurants, from regeneration. Located in the views of the Matterhorn mountain ranges from Ahorn for beginners Bridget Bardot, today it entertains bars and some nightclubs. Popular vast Espace Killy ski area, it offers it offers moonlight skiing. Zermatt and the 78 degree gradient Italian fashion icons and actors. all year around destination equally 129 runs covering 300 km of piste. slopes are extremely varied and Harikiri for advanced (and brave). Properties range form traditional to attracts plenty of both Western and Tignes is one of the larger Alpine serve every level of skier. Ranking Popular with young professionals, modern new build chalets, prices Eastern European visitors. resorts with an estimated 33,000 4th on our ultra-prime list it has apartment prices range from are high, at between €10,000 and guest beds. three Michelin starred restaurants. €3,000-€6,000 psm. €20,000 psm.

Source: Savills World Research

10 savills.com/research 11 Spotlight | Alpine Property Market 2015/16

 Vail is an ultra-prime resort in Colorado

North America In contrast to the US, winter sports are Challenges and a much wider part of Canadian culture, opportunities and the national ski participation The North American market faces The United States leads the world rate stands at 12%. The Canadian challenges. The US is host to 470 by number of skier visits, some 56.9 market is reliant on a domestic and ski areas, down from more than 700 million in 2013/14 season. The US US customer base, although top- in the 1980s. The ski markets are market has seen a small decline in tier resorts such as Whistler benefit highly domestic, and in spite of a activity since 2010/11, compounded from visitors (and home buyers) from huge population, the US participation by poor snowfall in California. Unlike beyond North America. rate is low (estimated at between 3% Europeans, who pre-plan trips, many and 4%). This makes it particularly Americans drive to the slopes at short Just 125 kilometres from Vancouver, susceptible to changes in ski habits notice, so visits are highly sensitive to Whistler played host to the 2010 at a national level. fluctuations in ski conditions. Winter Olympics and is one of the world’s most exclusive ski resorts. The USA and Canada’s resorts are For such a large country, the US has With a permanent population of just spread over three main mountain relatively few resorts of worldwide under 10,000 residents, Whistler has a ranges (The Rockies, Appalachian and renown. Vail stands apart as an large second home market. Whistler’s Sierra Nevada) which together cover a ultra-prime resort, benefiting from residential market suffered during the total area of more than 3 million sq km. demand from the large UHNW global economic downturn as US By contrast the Alps are 1/10th of the community in the US. Prices are still buyers, historically a key purchaser size, but host to more ski resorts than below their 2007 high, but recovery group, were put off by a strong in any other part of the world. Closely has been driven by the top end of Canadian dollar. packed and often interlinked, resorts in the market. Inventory is low and the the Alps benefit from a position at the best properties rarely trade. Privately In contrast to nearby Vancouver, heart of densely populated Europe. owned and operated, Vail Resorts prices in Whistler last peaked in 2008, $500m has invested more than $500m on falling by around 25% to a low in From a real estate perspective there improvements in the last five years. 2012. Values have since recovered, are opportunities. US ski resorts are The amount invested in with sales volumes seeing a marked poised to benefit from a spill-over improvements by Vail Resorts increased in the last year, but remain of demand after strong recovery in a third off their 2007 high. the residential markets of US cities. over the last five years “Prices are still below their Land is more readily available than The majority of home buyers in in tightly packed European resorts. 2007 high, but recovery has Whistler are Canadian, many hailing North America (notably the US) is from neighbouring Vancouver. At the home to the largest number of wealthy been driven by the top end very top tiers of the market, buyers individuals globally, so with the right of the market” from the US, Europe, Asia and Russia product there remains a ready demand are present in small numbers. base to tap in the home market. n

FIGURE 9

North American and European ski markets compared Regional population of the market Number of skiers in the market (2013/14 season)

Rockies, Appalachian, Sierra Nevada VS The Alps

Mountain area 3,000,000 sq km Mountain area 300,000 sq km

North America market size: 355m Western Europe market size: 410m

18m 45m

Source: Savills World Research

12 savills.com/research 13 Spotlight | Alpine Property Market Date

Ski markets The established Alpine resorts of France, Switzerland and Austria are the most visited globally. We examine the future competition in the form of International Residential About Alpine Homes to watch emerging destinations and resorts opening up to an international market. Based in Margaret Street in London’s West End, the International Alpine Homes International is a leading Ski Property Agency, based Residential Department provides an extensive range of property in Switzerland. Founded in 2005, Alpine Homes specialises in the services for international property owners and developers: sale of off plan and resale property in Switzerland, France, Austria Argentina The balkans Las Lenas China and Italy. We offer a broad range of property services to developers Consultancy: Market research, concept development, urban and property owners alike, including development consultancy, and resort master planning, financial investment and structuring, valuation, brokerage and rental introductions. Our qualified, programme management coordination, branding, sales and multilingual staff are passionate about ski property and The Alps marketing services. and we strive to offer the highest standards of client care.

Agency: Development sales and market services for international Alpine Homes is proud to be an International associate of Savills plc. developments and resorts. This includes both on-site and off-site sales operations and global sales road-shows. Our Alpine Homes Division is a leading specialist in the sale of ski property in the Alps. The ski resorts of the Balkans are Las Lenas, Argentina, is an As an emerging ski market, 80% of the opening up to a global audience, emerging luxury ski resort at high ski business in China is for beginners. Network: Individual and multi-unit property sales services through an having attracted western tour elevation in the Andes. Infrastructure This is reflected in the profile of the international network of Savills and associate offices around the world. operators in recent years. Kopaonik in the resort is more limited 350 ski areas in China, the majority of We also offer a bespoke off-market property sales service. www.alpinehomesintl.com in Serbia has a reputation for ski- than some of those established which are ski fields for learning. Only in-ski-out properties, and attracts ski destinations in the northern a handful of resorts are approaching Research: Knowledge of both local and international market dynamics, Espace des Remparts 10 Route de la Poste 20 domestic, British and Russian skiers. hemisphere and as a consequence, Western standards. The sport is still through Savills’ global presence and research capabilities. Includes 1950 Sion 1936 Verbier A candidate for EU membership, it is Mendoza, the resort’s gateway nascent (and considered ‘play’ by regular reporting on local market conditions and research reports Switzerland Switzerland foreigners may purchase freely in city, that has attracted the lion’s many Chinese), but a growing number tailored to clients’ specific requirements. +41 (0)27 323 7777 [email protected] Serbia under a reciprocal agreement. share of (mainly domestic) wealthy of young, wealthy Chinese are taking it In Bulgaria, Bansko offers access to investors. Mendoza also benefits up. China’s hosting of the 2022 Winter Pirin National Park, a UNESCO world from proximity to the vineyards of Olympics should further broaden its heritage site, while Borovets has Chacras de Coria and Maipo. appeal. Yabuli in the north of China been established as a winter resort is the country’s largest resort and the since 1896. training venue for the national teams. relative to other Alpine markets.

Niseko Japan Pyeongchang South Korea 80% of China’s ski market Savills team is for beginners World Research Savills Alpine Homes Niseko is one of Asia’s most important Pyeongchang is the 2018 host for ski resorts. Located in Hokkaido, it the Winter Olympics. Located in the is famous for plentiful powder snow Taebaek Mountains, it comprises and the iconic Mount Yotei. This valley several resorts, of which Yongpyong is resort is internationally recognised the largest and a two hour drive from as a world-class ski destination, and Seoul. Neighbouring Alpensia is a new 2018 as such draws visitors from across resort and will be home to the athlete’s Winter Olympics to Pacific Asia and beyond. Niseko village and ski jumping stadium. Charlotte Heath has an established luxury residential Pyeongchang has long been the haunt be held in Pyeongchang Yolande Barnes Paul Tostevin Vladimir Tikhnenko Jeremy Rollason Residential International market, supported by those from of Korea’s high-society. International World Research World Research World Research Savills Alpine Homes +44 (0) 207 016 3744 China, Singapore, Malaysia and investors have been attracted by +44 (0) 20 7409 8899 +44 (0) 20 7016 3883 +44 (0) 20 7016 3043 +44 (0) 20 7016 3753 [email protected] Korea, as well as domestic demand. special visa investor programmes. [email protected] [email protected] [email protected] [email protected]

1896 Savills plc “The ski resorts in the Balkans are opening Savills is a leading global real estate service provider listed on the London Stock Exchange. The company established in 1855, has a rich heritage with unrivalled growth. up to a global audience having attracted Borovets in Bulgaria It is a company that leads rather than follows, and now has over 600 offices and associates throughout the Americas, Europe, Asia Pacific, Africa and the Middle East. established as This report is for general informative purposes only. It may not be published, reproduced or quoted in part or in whole, nor may it be used as a basis for any contract, prospectus, agreement or other document without prior consent. Whilst every effort has been made to ensure its accuracy, Savills accepts no liability whatsoever for any direct or consequential loss arising from its use. western tour operators in recent years” a winter resort The content is strictly copyright and reproduction of the whole or part of it in any form is prohibited without written permission from Savills Research. Savills World Research

14 savills.co.uk/research 015 33 Margaret Street London W1G 0JD +44 (0) 20 7499 8644 savills.com