Real Estate Prices in Verbier
Verbier real estate prices belong to a category of their own. Verbier real estate is a very attractive investment option if you want to invest in luxury ski real estate. It really is a great long-term investment and as a potential Verbier chalet or apartment owner, you can tap into various benefits this region offers.
But before you actually start investing, it’s good to take a better look at Verbier real estate prices and the real estate market landscape. It’s important to make investments in the right property options, but also to keep everything within your budget’s capabilities.
Switzerland property market
Successful investors have always seen Switzerland as a great investment option. The Swiss have a good and stable currency, their economy is stable, and there are no political issues that are burdening the region.
Clearly, these are all good signs that making investments there is the right move. However, let’s take a better look at the property market and some rules that you need to keep in mind.
Property prices and trends
It’s true that Swiss property prices are going up. To be even more precise, Verbier real estate prices have not seen a drop in decades.
However, in the last decade, there were short periods when values kind of stagnated. This is partly due to the Lex Koller regulations which restrict how and where non-Swiss residents can buy property in the country.
Lex Weber also limits the number of second homes in any given location to 20%.
On top of that, thanks to these rules, the Swiss National Bank announced that they would no longer hold the Swiss franc on a fixed exchange rate with the Euro in 2015. Logically, the real estate prices went up after that and a lot of foreigners started selling their Swiss property.
Are foreigners coming back?
Keep in mind that you need to act quickly if you have serious intentions in investing in Verbier real estate.
Prices have been on the rise in Switzerland since more and more countries are relieving the COVID-19 restrictions. An increasing number of foreigners can travel to Switzerland and that means that a lot of investors will come back with interest in the marketplace.
On top of that, there are certain laws that are being prepared by the Swiss government that will change corporate tax rules, which could lead to an influx of international companies.
What about ski resorts and mountain regions?
According to various reports in 2020, prime property prices in most Swiss ski resorts and mountain regions either saw positive or neutral growth.
Verbier real estate prices recorded the strongest price growth of 2.9%. Behind Verbier, we have Grimentz with 2.3%, Klosters (1.9%), Davos (0.6%), and other resorts.
Even though it is early to predict how the pandemic impacted these real estate markets, it’s safe to say that the value won’t go down and it will stagnate at worst.
Switzerland recovered from the effects of Lex Weber’s law through infrastructure investments. In Verbier, for instance, the local authorities invested CHF 27.000.000 to improve public transportation.
Despite the global pandemic, the investment in infrastructure indicates that there is no slowing down since there have been around 70 new ski lifts opened in the Alps during the 2020/2021 season. This increased the capacity of the region by 0.9%.
Real estate market in Verbier
Due to the laws we have mentioned, it’s not so easy to purchase real estate in Verbier or anywhere in Switzerland.
But the rewards far outweigh the challenges. There are many international buyers coming from all corners of the world that invest in Swiss property as the law doesn’t change the fact that Verbier is a great investment opportunity.
Verbier, essentially, is one of the top-notch ski resorts and that’s why it is so expensive. But owning property there can pay off in the long run very well. Deciding to rent it out during the winter or summer seasons can be a great way to make a profit.
Keep in mind that the average prices for property in Verbier stand approximately at $22,000 per square meter and the property prices have only grown 2.9% in 2020. But don’t let these market prices scare you because the tax system in Switzerland is very favorable.
The market is stable, the mortgage rates are low, and there is no inheritance tax. A local bank in Switzerland will give you great mortgage rates even if you are not a local. Therefore, this investment doesn’t have to be a hard hit for your finances.
Verbier real estate prices
Buying a property in Verbier is a very lucrative investment option. But you should know a few facts first regarding the prices and the general value of the real estate market there.
If you wish to purchase an apartment, you should know that the average price per square meter stands at around CHF 18,000. On the other hand, if you want a house in Verbier, the average price per square meter stands at approximately CHF 24,000.
The median list price for houses on the market stands at CHF 6,150,000. The asking price for most properties falls between CHF 1,626,000 and CHF 12,600,000.
When it comes to apartment prices, the median list price for apartments on the market currently stands at CHF 1,950,000. The asking price for most properties is somewhere between CHF 550,000 and CHF 4,680,000.
If you plan to buy and then rent to make a quick profit, you will be glad to hear that the prices are very decent.
The median listed monthly rent for houses on the market stands at CHF 3,200 at the moment. The monthly rent for most properties is somewhere between CHF 1,280 and CHF 21,840.
The median rent in Verbier is CHF 270 per square meter per year.
When it comes to renting apartments, the median listed monthly rent for apartments on the market is CHF 4,877 at the moment. Moreover, the monthly rent for most properties is somewhere between CHF 989 and 12,379.
The median annual rent per square meter in Verbier stands at CHF 1,028.
Know this before you invest
Let’s check out a few things you need to know before you start investing and signing papers.
Can you even buy property in Verbier?
Yes, you can do that. Even if you are not Swiss.
A foreigner can purchase property from a Swiss citizen or another foreigner, but that can happen if the property being sold has been in the owner’s possession for at least 5 years.
Signing a declaration of intent is necessary.
What about the fees?
Be prepared to set aside almost 2.3% of the price to cover the notary’s fees and registration duties. This amount will most likely have to be used to cover all the fees.
Moreover, make sure to expect expenses such as insurance premiums, snow sweeping, electricity and heating bills, sewage fees, and so on.
Do I need to pay taxes?
If you want to buy a new property, you will have to pay taxes that range from $0.75 to 0.95 per m2.
If you are interested in buying an old property, you should expect to pay from $0.5 to 0.7 per m2.
Other taxes you need to be aware of include insurance, which can be $200 to 400 annually, management, electricity, and so on.
Can I get a mortgage?
Yes, Swiss banks offer mortgage loans at decent rates to foreign citizens. These usually cover up to 66% of the purchase price.
Verbier is a magnificent place that offers a lot to people even during the hot summer months. Speaking about winters in Verbier is not necessary since almost every travel-lover or skier knows how popular winters are in Verbier.
If you’re looking to invest and turn a profit or even buy yourself a second home in Verbier, you won’t regret it.
And if you feel motivated to secure an amazing property in Verbier, take a look at our listing of Verbier real estate for sale. ABC has some of the best chalets and apartments that will make you want to come back to Verbier and make it your home away from home.