Knight Frank's Ski Report 2024 notes a substantial 4.4% increase in average ski chalet prices from June to June, the highest since 2014, excluding a pandemic-induced surge. The surge is attributed to a shortage of luxury chalets and robust demand, with a 56% decline in listings across major French resorts. A global survey reveals 60% of respondents anticipate further price increases in Alpine properties. The market expansion draws buyers from Asia, the Middle East, and southern Europe, attracted by low costs, currency diversification, and climate considerations. Despite challenges like climate change, Alpine resorts are adopting sustainability measures. The report underscores the enduring appeal and profitability of Alpine properties for investors amid evolving market dynamics.
Knight Frank's The Ski Report 2024 highlights a substantial 4.4% increase in the average price of ski chalets from June of the previous year to June of the current year. This growth is the highest since 2014, not considering the brief price surge during the pandemic period.
A ski chalet is traditionally a wooden home located in the snow-laden mountains. Today, it has evolved into an emblem of luxury and comfort for winter sports enthusiasts and holidaymakers alike.
The report attributes the surge in prices to a shortage of luxury chalets alongside strong demand. Notably, listings across three major French resorts witnessed a significant decline of 56% compared to levels before the pandemic. Additionally, a survey across 34 countries revealed that 60% of respondents anticipate a rise in Alpine snow-laden property prices in the next 12 months.
The report remains optimistic about the market's expansion, drawing buyers from Asia, the Middle East, and southern Europe. Kate Everett-Allen, Head of Global Residential Research at Knight Frank, emphasises the growing appeal of owning second homes in cooler climates due to rising global temperatures. Owners of resorts in the French and Swiss Alps benefit from low purchase and ownership costs, currency diversification, potential rental income, and a hedge against inflation.
Luxury ski resorts confront challenges such as climate change, infrastructure enhancements, and stringent planning regulations. Some resorts in the French and Swiss Alps are taking proactive measures to combat the climate crisis by integrating sustainability features. These initiatives include collaborating with scientists for snow forecasts over the next thirty years, embracing renewable energy like solar power, and adopting greener fuel for snow grooming machinery.
Clarice Lau, Knight Frank’s head of sales for international project marketing, notes that while an Alpine home might not be the foremost choice for high-yielding assets among investors, several factors contribute to landlords’ revenue growth. These factors include the rising year-round tourism in the Alps, a dwindling pool of available rental homes, and a packed schedule of sports and lifestyle events.
Lau highlights the high prevalence of cash buyers in the world’s top ski resorts shows that the increased interest rate environment has had minimal impact on their desire for a ski home. Coupled with the shift to hybrid work models, renewed focus on health and wellness, and savings accumulated during the pandemic, the demand for these properties will remain robust.
Niseko in Japan was the top choice among skiing destinations in the Asia Pacific due to its proximity, renowned powdery snow, year-round amenities, upscale retail options, exceptional dining, and favourable dollar-to-yen exchange rate.
In conclusion, the report illustrates a robust surge in ski chalet prices driven by limited supply and heightened demand. It underscores the efforts of select resorts in addressing environmental concerns while highlighting the enduring appeal and potential profitability of Alpine properties for investors amidst evolving market dynamics.
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