Swiss Alpine panorama: Holiday apartments (second homes) in the Alps are about 20 percent more expensive after Corona. © dpa/ Felix Kästle
Corona is partly to blame for the fact that holiday apartments have become more expensive in recent years. In one region in particular, prices exploded.
Switzerland - Thanks to working from home and a stop to long-distance travel, the Corona pandemic has contributed to price increases for second homes. Those who no longer had to go to work, but still continued to earn well, were happy to afford a chic second home in the countryside. But since September 2022 at the latest, the trend has reversed, according to a new study: prices are no longer rising. What remains after Corona, however, is around 20 percent higher prices compared to pre-pandemic times and an empty market for second homes.
The study by UBS Alpine Property Focus has determined the prices for holiday apartments in different regions - among the top 10 are nine places from a single country: Switzerland.
Holiday apartments in the Alps: Price explosion in a Swiss town
The prices for second homes in the upscale segment in Switzerland have exploded: one square meter can come to over 20,000 euros. In one place in particular, prices exploded: within a year, second homes in Arosa became 20 percent more expensive, they now cost 13,400 francs per square meter (around 13,800 euros).
| Places | Price in francs per square meter | Conversion into euros per square meter |
| Engadine/St. Moritz | 20.500 | 21.200 |
| Films/Laax and Gstaad | 17.000 | 17.550 |
| Zermatt, Davos/Klosters, Jungfrau Region, Andermatt | 16.000 | 16.500 |
The prices for second homes in Kitzbühel are similar to those in Zermatt, making it the only town outside Switzerland to make it into the top 10. In 11th place is the first German region: The most expensive second homes in the Alpine region of Germany are located around Lake Tegernsee. here, however, prices have stagnated within the last year. In Switzerland, holiday apartments have become more expensive by an average of seven percent in the last year, in the French Alps by 5.5 percent, in the Austrian Alps by four percent, and in the Italian Alps by two percent.
Holiday apartments in the Alps: This is how the development will continue
Due to Corona, many first and second homes were converted and sold. "The conversion of a first home into a second home brings an added value of 15 to 20 percent in the market average," write the authors of the study. Since the beginning of 2020, the stock of second homes in the region analysed has increased by almost 2500 units, an increase of almost 2 percent. And there is still potential.
However, the authors also say: "Conversely, this reduces the supply of first homes and exacerbates the population decline in tourist destinations." Garmisch-Patenkirchen is also familiar with the problem of lucrative holiday apartments.
A further increase in the price of second homes is unlikely - but at the same time a sharp drop in prices. The most likely scenario is that prices will stagnate. (kat)
