Luxury St. Moritz Residential Prices Reach Record Highs

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St. Moritz is a property market that embodies a combination of winter sports and sophisticated lifestyle that seems to be immune to the Eurozone debt crisis and the overall global economic slowdown.

The attractive location in the middle of the Engadine lakes only adds to this exclusivity, as its natural situation means that space is very limited. Land plots are a scarce commodity here. Along with restrictively managed planning permission and strict stipulations governing new developments, a small yet high-demand market has emerged in the popular Alpine region.

"All these factors have resulted not only in sustained high prices on the property market but even price hikes in the uppermost market segment," says Chiara Jankolow, Office Manager at Engel & Völkers in St. Moritz.

The general trend of investing capital in crisis-proof assets has also sent demand and therefore prices soaring in the exclusive ski resort. Engel & Völkers has registered a five-percent rise in prices over the previous year for homes in prime locations with a very high-quality appointment.

The demand for first-class second homes in St. Moritz is exceeding supply in prime locations.

The most desirable addresses are mostly on the "Suvretta-Hang" hillside. Record sums of 40.0 to 80.0 million euros can be fetched here for properties in a traditional chalet style with a particularly high-quality specification.

Prices per square meter are reaching new highs of up to 59,000 euros. In addition, residential properties in St. Moritz Village are in strong demand, where homes with a high-end appointment in prime locations such as the Via Tinus, Via Brattas, Via Serlas, or in immediate proximity to the Palace Hotel, can change owners for as much as 20.0 million euros. The price per square meter here can reach up to 34,000 euros for chalets and freehold apartments.

The surrounding municipalities including Sils, Silvaplana, Pontresina, Celerina, Samedan and Zuoz are also profiting from the popularity and image of St. Moritz. In the neighboring village of Celerina for example, prestigious properties are being sold for as much as 7.0 million euros. The prices per square meter for villas here range from 20,000 to 25,000 euros, with prices for freehold apartments between 13,000 and 21,000 euros.

The average time-to-market for second homes in good and very good locations is, according to Chiara Jankolow, three to six months at present. Provided prices remain realistic, particularly first-class properties often find a new owner significantly quicker however.