PriceHubble, the PropTech company specialising in Big Data and artificial intelligence for data-driven solutions for real estate markets, today presented its new analysis on the development of second home prices in the Swiss Alps. How have prices developed over the last 10 years? But most importantly, has interest in real estate in these communities increased since the lockdown in the wake of the Covid-19 pandemic?
2010-2016: a market influenced by the Lex Weber
The Lex Weber, which came into force on 1 January 2016, aims to limit the number of second homes in all municipalities to 20%. New flats in particular are affected by this federal law, and dwellings built after 11 March 2012 or for which a building permit was issued after that date.
As a result, the Swiss market experienced a veritable "race for second homes" from 2012 onwards, both in terms of purchase and construction. Prices per square metre rose sharply during this period and subsequently stabilised in 2013 and 2014.
A second phase emerged between 2015 and 2016: With the Swiss franc appreciating and supply significantly exceeding demand, prices collapsed until the Lex Weber was passed in its final version. From then on, investors calmed down and prices continued to rise until 2020, supported by the peak of the Swiss franc.