In Aspen, the most expensive and emblematic ski resort in the United States, luxury homes reach prices of up to $125,000 (about 114,000 euros) per square meter. It is easy to find houses in this resort from Colorado that sell for more than 25 million dollars. At the St. Moritz station in Switzerland, prices per square meter reach 100,000 Swiss francs, around 106,000 euros.
Home purchases in the main snow destinations in the world are holding up in a more hostile economic context led by rising interest rates. According to the consulting firm Savills, average house prices prime of the top 20 stations were down 4% over the year. However, prices at the most exclusive stations remain 20% above 2021 levels and are 41% higher than pre-pandemic values.
The highest altitude resorts in the Swiss and French Alps—St. Moritz, Val d'Isère and Courchevel 1850—and year-round buildings—Chamonix and Verbier—are best positioned for new buyer demands. “Investors are prioritizing locations where ski seasons are longer and snow is guaranteed, as well as places where there is a broader mix of ski-related activities,” Knight Frank warns. It seems clear that climate change and uncertainty about future natural snow conditions will challenge the ski business in the short term.
Although Spain does not have the resorts of Aspen or the Alps nor is it on lists of top international snow destinations, it does have a booming housing market. “It has experienced notable growth in recent years, despite the limited supply of properties in these areas and the restrictions on carrying out large construction projects due to the uniqueness of its location,” indicates Ernesto Ferrer-Bonsoms, Business Director. Solvia Real Estate.
At the CBRE consulting firm, they believe that the rise in demand is based on four pillars: “Investment opportunity as a second home, significant rental returns for skiing and rural tourism, refuge value in the most sought-after ski resorts, and demand for locations.” rural areas by teleworkers.”
Proof of investment interest are the tourist homes that have been appearing in snow destinations. In Panticosa, in the heart of the Aragonese Pyrenees, there were 88 homes for holiday use in 2020 and according to the latest data from the INE, from February 2023, there are 142. The same thing happens in the most relevant ski towns in the Catalan Pyrenees or Sierra Nevada . Seven years ago, in the region of La Jacetania, in the province of Huesca, there were 42 tourist houses and currently the figure rises to 448.
The profitability of these properties is on average between 8% and 11% gross per year, indicates Ferrer-Bonsoms. The figure depends on the location, type of home and season. In winter, that performance skyrockets. Although, unlike other vacation destinations, snow resorts offer the advantage of a double season (winter and summer), which allows visitors to do other activities, such as hiking or ice skating. “Its popularity extends throughout the year as it is found in privileged natural environments. This is due to the growing interest in rural tourism and outdoor activities, thus driving a constant demand for properties in these areas,” comments Ferrer-Bonsoms. This versatility gives the saver profitability beyond the winter.
Andorra and Baqueira Beret
Fotocasa studies show that the demand for second homes has increased and is at maximum levels since 2017. The real estate portal includes Andorra in its analysis and concludes that houses near the Andorran ski slopes of Ordino Arcalís, Vallnord-Pal Arinsal and Grandvalira, as well as those of Baqueira Beret (Lleida) are for the second consecutive year the destinations with the highest price.
At Ordino Arcalís, the most expensive station in the Andorran Pyrenees, apartments cost 5,016 euros per square meter and single-family homes reach 4,446 euros, which represents an increase of 15% compared to the previous year. The offer ranges from small apartments to large chalets and buyers are looking for two things above all else. “Proximity to the ski resorts is essential, they want to be able to easily reach the slopes without having to travel long distances; and the views of the mountains and snowy landscapes are highly valued by buyers,” says Josep Lluis Estruga, director of Engel & Völkers Andorra.
Properties in Baqueira Beret, in the Catalan Pyrenees, have also become more expensive. Apartments cost 3,838 euros per meter (22.5% more year-on-year) and houses cost 3,319 euros, an increase of 8.2%. An example of what the market offers: semi-detached house in the Val de Ruda urbanization, next to the access to the cable car, with 320 square meters and four floors, is sold for 2.7 million euros.
However, there is another formula to become an owner on these tracks without assuming such outlays. Co-ownership landed here last year, that is, acquiring a house for a fraction of its value. The Vivla firm has put six exclusive homes on the market in Baqueira Beret – two completely sold and two others half sold – and plans to reach ten in March and expand to La Cerdanya (Lleida). Their range ranges from 600,000 to 1.4 million euros and the prices per fraction (they are sold in eight fractions) range between 75,000 to 175,000 euros.
If the numbers are still not working out, we should head to Javalambre (Teruel), the cheapest ski resort, with houses for 381 euros per square meter, according to Fotocasa, which estimates that prices have fallen by 28% in one year. They are followed by Manzaneda (Ourense) and Valgrande-Pajares (Asturias), which sell at 387 and 482 euros per meter, respectively.
As for rent, Baqueira Beret, where there are 636 tourist homes, is once again the station with the highest price: 38.6 euros per square meter per month, which represents an increase of almost 9% compared to the previous season. “The average rental price on New Year's Eve or Easter can reach 7,000 euros per week and seasonal rentals range between 14,000 and 18,000 euros per month,” they indicate in Vivla. Meanwhile, the cheapest rentals are in Puerto de Navacerrada (Madrid), where the rent is 8.3 euros per square meter, and in Valdesquí, also in the Madrid region, with 6.3 euros.
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