Gstaad Now Commanding Record Prices for Prime Residential Properties

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The residential property market in the winter sports resort of Gstaad in the Bernese Highlands is one of the most exclusive on earth. The traditional chalet village was even left virtually unscathed from the international economic and financial crisis.

"Overall there was a little less activity on the market, as the majority of those who own prestigious second homes are not placed in a position where they are forced to sell their properties, even during turbulent times on the capital markets. Rather, they're interested in holding on to their real estate as a stable asset," comments Antonia Crespí, Office Manager at Engel & Völkers in Gstaad.

"The market - especially in desirable areas such as Oberbort - is being impacted by a distinct lack of available properties," Ms. Crespí added.

This development is being propped up still further by the general trend towards crisisproof investments in tangible assets, coupled with strict building regulations and limits to new construction projects in Gstaad that arise as a result.

Switzerland: Top prices for residential property in Gstaad are driven by:

• Scarce supply in prime locations leading to ever-growing valuations

• Record prices of up to 60,000 CHF (approx. 49,200 euros) per sqm

With regard to exclusive chalets with very high-quality appointments in prime locations, Engel & Völkers Gstaad is registering prices of between 15.0 million CHF (approx. 12.3 million euros) and 40 million CHF (approx. 32.8 million euros).

At top addresses in the Alpine village, the high excess demand is leading to new record price tags of up to 60,000 CHF (approx. 49,200 euros) per sqm. The average time-to-market for second homes in good and very good locations is currently six to 12 months, according to Ms. Crespí.

"In some cases however, particularly special properties in very attractive locations are finding a new owner within the space of just a few days. Provided that the properties are offered at the appropriate price" said Crespí.

In addition to detached residences built in the chalet style typical for Gstaad, freehold apartments with interiors upwards of 200 square meters and located within close proximity to the village centre are also in very high demand. Here, prices per square meter for properties with a first-class appointment are between 30,000 CHF (approx. 24,600 euros) and 45,000 CHF (approx. 36,900 euros) per square meter.

Prices in the surrounding districts of Wispile, Gruben, Bissen and the surrounding municipalities of Schönried, Saanen Unterbort, Saanen and Rougemont are also at a very high level. As much as 25,000 CHF (approx. 20,500 euros) per square meter can be reached for freehold apartments here. Authentic farmhouses in the surrounding region with potential for development are among the most desired properties but only very rarely on the market.