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Second-home prices in the mountains: climate change and telecommuting drive price rises

The Swiss Alpine real estate market is experiencing a veritable explosion in second-home prices, and this phenomenon seems far from over. While prices were already high before, the increased attractiveness of mountain regions, combined with a series of factors such as climate change, telecommuting and the effects of the pandemic, continue to stimulate ever-increasing demand.

A widening price gap above 1000 meters

Since 2020, the price gap between second homes at altitudes below 1000 meters and those above has widened considerably, particularly in the canton of Valais. A study by real estate consultancy Wüest Partner shows that this difference is now almost 20% for properties above 1000 meters. Before 2020, these properties were already more expensive due to their proximity to ski resorts, but this increase has become even more pronounced in recent years.

Climate change: a key factor in mountain attractiveness

The development of the mountain real estate market is strongly influenced by climate change. Robert Weinert, Head of Research at Wüest Partner, explains that lower valley temperatures, higher summer temperatures and less snow in some resorts have boosted the attractiveness of mountain regions. The latter offer a cooler climate in summer and better snow cover in winter. In fact, climate projections show that by 2025, the amount of snow in ski resorts at altitudes below 1,500 meters could fall by 30%, a prospect that could accentuate the price differential between second homes in the mountains.

The impact of telecommuting and the pandemic on demand

The Covid-19 pandemic has played a central role in increasing demand for second homes in the mountains. Telecommuting has enabled many people to leave the big cities for healthier, more peaceful environments. The ability to work remotely has made these properties more attractive not only for vacations, but also as permanent or second homes. This change in lifestyle has generated strong demand, particularly for properties in mountainous areas, away from the hustle and bustle of the city.

Price rises in other mountain regions

While the Valais is a striking example of this trend, other Swiss regions have also seen price rises. In the Bernese Oberland, for example, prices have risen by 55% since 2011, while in Graubünden the increase has reached 76% over the same period. These regions have seen strong demand for second homes, not least because of their accessibility and constantly improving tourism infrastructure.

Scarcity of supply in the face of strong demand

Another major factor driving up prices is the scarcity of supply. Mountainous areas, particularly those above 1000 meters, are limited in terms of new construction, so supply cannot keep pace with growing demand. With the growing appeal of these regions, largely fuelled by external factors such as climate change and telecommuting, prices continue to rise. This dynamic creates a situation where demand continues to outstrip supply, and this is particularly true in well-known resorts or cantons such as Graubünden, Valais and the Bernese Oberland.

Future prospects: A long-term trend?


The future looks bright for mountain real estate, as demand shows no signs of slowing down. Indeed, mountain regions, already attractive thanks to their climatic and geographical characteristics, are likely to become even more sought-after as the amount of snow continues to diminish in resorts below 1500 meters. This could accentuate the price differential between properties located at more or less 1000 meters above sea level, reinforcing the idea that properties at higher altitudes will be even more valuable.

Legislative relaxation: a moderate effect on supply and prices

Another factor to watch is the revision of the law on second homes, which came into force in October 2024. It now allows existing properties to be extended by 30% and new buildings or apartments to be added during renovations. Although this revision could slightly increase supply, experts, including Robert Weinert, believe that it will not have a significant short-term impact on prices. Indeed, demand will remain much stronger than supply, and this will continue to drive up prices in the most sought-after regions.

In conclusion: a steady but complex rise

The rise in prices for second homes in the mountains is a complex phenomenon, fuelled by multiple factors, including climate change, the Covid-19 pandemic, the scarcity of supply and the growing appeal of mountain areas to city dwellers in search of a quieter way of life. Climate projections and the trend towards telecommuting suggest that this dynamic could last for several years yet, so it's highly likely that prices for second homes in the mountains will continue to rise.
For investors and buyers interested in this booming market, now is the time to think strategically, as mountain real estate could well represent a long-term opportunity, although prices remain high and competition fierce.


Sources
24heures.ch - Article
webradio.media - Article