Prices of ski homes in the Alps rise 19 pc over last decade: Knight Frank

Mumbai (Maharashtra) [India], Nov 27 (ANI): Ski homes in the Alps have witnessed an average price growth of 19 per cent over the last decade, outperforming average returns from prime properties in tier-one cities like Geneva (19 per cent), Mumbai (13 per cent), Monaco (minus 11 per cent) and St Tropez (minus 22 per cent), international property consultant Knight Frank said on Wednesday.
Knight Frank's Prime Ski Property Index, which provides an overview of prime market conditions and tracks the price of a four-bedroom chalet in a central location across key resorts in ski destinations in the French Alps and Swiss Alps, has increased by 1.4 per cent year-on-year in Q2 2019. The index was established in 2008.
Val d'Isere in France leads the Prime Ski Property Index with an annual price growth of 2.9 per cent in the year to June 2019 followed by Chamonix (2.6 per cent) and Saint-Martin-de-Belleville (2.4 per cent) at the second and third positions.
Easy accessibility, low mortgage rates, hassle-free rental, stable or rising prices, market liquidity to facilitate their future exit strategy and currency advantage are the major factors facilitating growth.
Wealthy Indians from London and Dubai target the premium luxury markets in the Alps, favouring Courchevel and Megeve, for the quality of restaurants and shops on offer as well as the seamless and excellent service in these resorts.
Courchevel 1850 saw a price rise of 1.8 per cent year-on-year in Q2 2019 with a price of 26,000 euros per square metre. Price remained constant for Megeve at 13,700 euros per square metre.
In terms of the investment class, KF Prime Ski Prime Index (1.4 per cent) performed better than furniture which gave 1 per cent year-on-year return in Q2 2019, cars (minus 5 per cent) and jewellery (minus 7 per cent).
French resorts have widened their lead over their Swiss counterparts with all six top rankings being occupied by French resorts this year, which were mostly located in The Three Valleys. A remarkable trend seen for the first time this year is that none of the ski resorts tracked in Knight Frank's index registered a decline in prime prices.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, said: "As a lifestyle asset, the purchase of a ski home is often an emotive decision, but investment rationale is becoming more compelling. With prime ski homes offering capital value comparative to prime residential properties of global cities, Alpine investment is a lucrative asset class for Indians looking to diversify the portfolio and invest in a safe currency from a long-term outlook."
According to Knight Frank Wealth Report 2019, a total of 18 per cent of wealthy Indians are looking to emigrate to another country permanently. Out of the total, 3 per cent are looking to shift to Switzerland and the same percentage to France, formulating a latent demand for prime residential properties including Ski resorts. (ANI)