Diary of an agent: Alex Koch de Gooreynd and Roddy Aris

Alex Koch de Gooreynd (pictured left) and Roddy Aris (pictured right) are part of Knight Frank’s International Department and specialise in ski property sales in Switzerland and France, respectively.

The pandemic is driving many families to invest in the mountain lifestyle; despite Brexit complications and a weak pound, sales activity has been strong; prices have held up, but cash remains king even in the Alps.

How has the emergence of Covid-19 affected sales? 

Alex Koch de Gooreynd (AG) – The Swiss market has been similar to the UK, with people living in the middle of Geneva deciding they want to live further out of the city to gain more space. A trend that began during lockdown was people getting in touch who had dreamt of owning a ski chalet. They had money sitting in the bank but had previously worried about financial considerations. This was torn asunder by the pandemic and the desire to create a family pad in the mountains.

Roddy Aris (RA) – It killed the market when the resorts closed at a moment’s notice on the 23 March, although 90% of the deals agreed before this held together. We then moved to virtual tours and that worked well: I sold a chalet in France from London to a French woman based in Sydney. Once confinement ended, there were record levels of enquires and transactions due to pent-up demand, and people wanting a lifestyle.

Is Brexit a factor in purchasing decisions?

AG – An issue around Brexit is that after 1 January a holder of a British passport thinking of relocating to Switzerland will be classed as coming from the rest of the world rather than the EU. In the short-term that could have ramifications on the size of property you can purchase and the tax rate you’ll face. However, the Swizz like the idea of the UK having, like them, a different arrangement with the EU, and talks are underway to address this.

RA - To a degree, although the international department has weathered this storm well since the UK voted to leave the EU. For some clients it has crystallized their desire to own a foothold in the EU.  

What has been happening in regards pricing in such a volatile year? 

AG – Transaction numbers are up but it's not driving prices higher in general. The activity will have impact in some markets such as Geneva but in Verbier, where we recently opened an office with a local partner, prices aren’t jumping despite a lot of transactions. 

RA - The biggest challenge to our department has been currency fluctuations. We have weathered terrorist attacks, Brexit and now a pandemic, and none of these have hit us as much as a weak pound. However, when demand has softened from the UK it has been filled by local and international buyers, which has maintained prices in the Alps. However, the banks are increasingly cautious and circumspect in regards lending, which is killing some deals. It means cash is very much king and the way to get a great deal.

What has been the buyer profile since the market reopened? 

AG – We’ve seen a lot of people that previously found excuses to put off that next move, whether purchasing a holiday home or primary residence, that have decided to act. People are keen to do things now, with the only frustration the travel restrictions that remain in place. For example, I have a prospective buyer in Monaco that can’t travel to view property in Verbier at present.

RA - The motivation to buy remains uniform across the resorts, the difficulty is getting there right now. The desire to spend quality family time in the mountains is what is driving this.

What are your thoughts on the ski property market’s prospects?

AG – While many people are attracted to Switzerland for tax reasons, in times of crisis it provides stability, safety and quality healthcare and education too. The resorts are spending millions each year to become all year-round destinations. They are improving the railways through the Alps and want people to live in the resorts permanently. In Verbier during the winter the school triples in size as people from nearby base themselves in the village for those months.

RA - Resorts invest 100s of millions of euros in their infrastructure, building on their reputation and reinventing themselves. Meanwhile, our lifestyles are becoming healthier, we’re more ecologically conscious and we crave space and fresh air, so demand for the mountain lifestyle will remain robust.

The Ski Property Report 2021 will be published next week, sign up to receive it upon release here.