_Ten trends set to influence ski markets

1. Exchange rates 

We estimate 40% of ski home purchases in the Alps involve a foreign stakeholder, be it a buyer or vendor, meaning exchange rates have an important bearing on the transaction. A €2m chalet would today cost a British buyer £188,000 more than it would have done a decade ago as a result of the weaker pound. Whether planning your exit strategy or contemplating which price bracket to target, it pays to monitor the exchange rate. 

2. Property market regulations & Airbnb 

Policymakers are increasing keen to improve transparency in an effort to monitor/control who is buying what and where. Switzerland has seen some of the most stringent rules imposed starting with Lex Koller in 1983 (establishing areas where non-residents cannot purchase) and more recently with Lex Weber in 2013 (the 20% cap on second homes per commune). The French Alps face fewer rules on who can buy property but there are rules on the scale and design of future development to ensure it is sustainable and sensitive to the Alpine landscape. 

3. Climate change 

Despite record snowfall in the 2017/18 season, temperatures in the Alps have risen by just under 2°C over the past 120 years, almost twice as much as the global average. Global warming is expected to bring about changes in rain and snowfall patterns, there is the potential for heavier but less frequent snowstorms.

Not only is technology in the form of snow guns and cannons helping, but the new machines are more energy efficient and specialist machines are now used to relocate snow to the busiest pistes. It is likely, however, that we will see more buyers target high altitude resorts to maximise their season length in coming years. 

4. Tighter monetary conditions 

Not immediately, but over time the cost of finance in the Eurozone is likely to rise. The European Central Bank announced its plans to halt its asset-buying programme (quantitative easing) in December 2018 and interest rate rises may start to shift upwards from the end of 2019 but they will remain low by historic standards.

Swiss interest rates look set to remain in negative territory for some time. Buyers seeking a mortgage may find costs slightly higher over the next few years and more may seek to lock themselves in to a longer fixed rate deal in the coming months to take advantage of the current low rates.  

5. Dual season 

The days of buying a ski home for use exclusively in the winter months are gone. The Alps have been able to capitalise on the global push to improve health, fitness and make the most of the great outdoors. Summer tourist numbers now rival those in the winter months with a broad range of activities on offer, including mountain biking, hiking, paragliding, abseiling and glacier skiing.

A prolific calendar of social, cultural and sporting events throughout the year, from Polo Championships to Jazz and Food festivals, also boost tourist and rental numbers. 

6. Family time 

Unlike beach holidays where teenagers often head off independently with friends, skiing in the Alps provides the opportunity for a full day of shared pursuits and valuable time when the family remains as one on the slopes, sharing lunch and an evening meal. This USP for the Alps is likely to come into sharp focus in the coming years.

A number of the Swiss resorts also host some of the world’s top private schools (Villars, Verbier, Crans Montana) and this attracts international buyers seeking a base when visiting their children. 

7. Infrastructure investment 

Standing still is not an option for the Alpine resorts as they seek to attract a new generation of skiers, as we’ve highlighted elsewhere in the report. Villars has ploughed significant funds into reinventing its offer whether it is night skiing, the new swimming pool or new gondolas and a beginners’ area. Ahead of the FIS Alpine World Ski Championships in 2023 we expect Courchevel and Méribel to be a key investment hub. 

8. Going big 

Ski resorts are joining forces to create vast domains in an effort to attract more skiers. Some ski domains are fully linked by lifts and telecabines, others have a shuttle bus which is included in the cost of the ski pass. France is home to more than half of the ten biggest ski areas in the world.

At 600km, the Three Valleys is the largest, stretching from Courchevel to Méribel across to Les Menuires and Val Thorens Expect to see more resorts link up. This push to experience more and travel further has led to a new Swiss 'magic pass' which provides access to 30 resorts and 1,000km of slopes for around CHF500 per year. 

9. Chinese interest 

The 2017 China White Book estimates that of the country’s 1.2 million skiers over half travel abroad to ski, Japan is high on their list. Cheaper travel and rising wealth is likely to mean more Chinese tourists and buyers in the Alps.

The number of people in China with US$5 million is forecast to rise by 218,000 to 425,270 between 2017 and 2022 and analysts report that 2018 has seen nine new flight routes open up from China to Europe, which translates into 6,000 more seats per week. 

10. Technology 

Advances in technology are reshaping the skiing landscape. From ergonomic boots and parabolic, curved skis to adaptive skiing for disabled individuals, it is now easier for a larger demographic to take up the sport. Add to this new Apps capable of following one’s friends on the mountain, measure your speed against other skiers, as well as gadgets such as heated gloves, air-bag vests and camera drones to track your route downhill, such advances may improve safety, comfort and personal bests. 

For further information please contact Kate Everett-Allen

Read the report in full here