Posted on 15 November 2013
The average price of ski homes around the world rose by 4.6 per cent in the year to the end of June 2013 outperforming luxury homes in many cities and global second home locations, according to an international property agency.
Knight Frank’s Prime Ski Property Index (PSPI), which tracks the price performance of luxury homes located across 18 ski resorts worldwide, has started to follow an upward trajectory in the last 12 months, rising by 4.6 per cent compared to a fall of 0.9 per cent a year earlier. The index now stands 11.9 per cent above its trough in the second quarter of 2009.
The PSPI’s recent performance suggests ski properties are increasingly in demand amongst wealthy investors, who are competing for an asset which is in relatively limited supply and which has lifestyle advantages and the potential for long-term capital growth.
The Swiss resorts of Zermatt and Davos recorded the strongest annual price growth in Europe, up 14.1 per cent and 10 per cent respectively, but were closely followed by top tier properties in the resorts of Morzine and Chamonix which saw prices rise by 8.5 per cent and 8 per cent respectively.
Knight Franks said: “We expect sales activity to improve during the 2013/14 season as interest in ski homes spreads beyond Europe and North America to emerging centres of wealth. The venue for the 2014 Winter Olympics, the Black Sea resort of Sochi in Russia, has seen a small rise in prices – 1.3 per cent in the 12 months to June. The decision to host the games in Sochi was announced in 2007 and the following two years saw residential prices rise by 40-50 per cent. However, the global financial crisis has weakened demand and prices are expected to remain relatively static in the run up to the Games in February 2014.”