A clampdown on the building of holiday homes in Switzerland has caused mountain resort property prices to soar.
Some resorts have seen a sudden surge of 10 to 15% since the cap on second homes was introduced in March 2012.
The ban prevents the construction of holiday homes in communities where they already number over 20% of the total. Some 570 resort communities fall within the ban.
The cap covers all types of property owners including Swiss nationals and residency permit holders, but is not retroactive, so will not affect existing projects and properties.
Only 1,500 ownership permits now are issued each year to foreign buyers seeking a second home, but the 1970s around 450,000 holiday homes have been purchased by foreigners.
Second homes are believed to account for around 12% of all houses in the country, but many are empty for much of the year. The government’s cap was designed to increase the number of homes in full occupancy year round.
As a consequence of potential investors’ scramble to acquire second homes, prices in St Moritz are close to €15,000 per square metre, compared to €7,000 in Chamonix, France, and less than €4,000 in the Austrian ski villages of Lech and St Anton.
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