Second Home Limit Shouldn’t Affect Swiss Development

Posted on 03 May 2012

It looks as if a major in development in the Andermatt Swiss Alps will not fall foul of stringent limits recently imposed on second homes as a result of a referendum. The $1 billion scheme has seen the rehabilitation of a vast area of derelict land since it began. This has included the exterior construction of the five-star Chedi Hotel, with apartments.

Preparations are already underway to begin holding a new holiday resort on the edge of the village which will consist of 490 apartments housed in 48 blocks, as well as 25 individual villas and another five hotels. The foundations for the development, which is being termed the new Andermatt, are partially built and the golf course has already been seeded.

The developer recently opened a showroom at the Chedi Hotel to allow potential purchasers to see how the new flats will look. Out of the 119 properties, the smallest will be a two room pied-à-terre of 100 m², while the largest will be nearly 600 m². These apartments will be the most expensive in the development because of their links to the upmarket hotel. However there will be a number of cheaper properties in the village, costing from Fr.14,800-Fr.16,300 per square metre.

The hotel and the first holiday village flats and first villa will be completed in December next year, while additional flats and the Chedi residences are due to be completed the following year. Properties went on sale in this development two years ago, and although a considerable number of units were initially reserved, these reservations haven’t always turned into sales. The problem might be the strength of the Swiss franc, as many other currencies have depreciated against it in recent years. This has meant more units have been sold to Swiss buyers, accounting for 60% of all sales, while 20% have gone to Middle Eastern buyers.