One of the big lessons from this year in real estate has been the pandemic’s resulting increase in demand for second lifestyle homes, not only among the ultra-wealthy but also the generally well-heeled, a trend that’s only gained steam as the year has unfolded.

With a vaccine still over the horizon, this shift out of city centres and into more spacious suburbs is spilling over into even more remote locales: mountain resorts, which have been growing in appeal with global investors.

Not only are these areas less densely populated, making it easy to adhere to social distancing, but the rise of work-from-home (WFH) supported by modern technology infrastructure has made it a realistic alternative for the slightly more affluent.

Activities like skiing and (in the summer months) golf are being indulged in across central Europe’s mountainous regions as a welcome pandemic escape, with home offices and ultrafast broadband ensuring work life is not put on the back foot.

Indeed, the whole idea of moving back to nature where life happens at a slower and more relaxed pace, and where homeowners can focus on wellbeing and health, has been a key trend in the real estate sector in a year that will be forever remembered for COVID.

But even so, there have undoubtedly been winners and losers among those offering luxurious remote living.

 

COVID escape: Health and wellness done sustainably

Developments that focus on advancing net-zero carbon goals, where buildings are highly energy efficient and powered by renewable sources, and where the promotion of green living is central to the development’s core concept, will thrive as a matter of future-proofing investments.

Premium mountainous real estate developments like Andermatt Swiss Alps in Switzerland, along with a handful of others in Europe, the US, and Asia, tick these sustainability boxes.

With well-established local infrastructure and connectivity, homeowners can be online 24 hours a day seven days a week, remaining productive at the (home) office despite their apparent remoteness.

At the same time, investors benefit from year-round activities that include those already mentioned (skiing and golf) but also extend to healthy lifestyle staples like trekking and cycling.

We expect to see more families prioritising “naturesque” safe-haven homes, for all or part of the year, in the decade to come.

In Switzerland in particular, not many areas allow for foreign ownership of real estate.

This means that, in the long run, investment in these developments is likely to yield strong returns as supply inevitably outstrips demand, putting pressure on prices to appreciate.

According to new research by JLL, health and wellbeing themes have emerged as measurable physical attributes that real estate investors increasingly look for in light of the pandemic, in order to secure a better quality of life for themselves and their families.

Notably, Asian buyers too are feeling the pull of Europe’s snowy peaks as COVID drags on.

As just two examples, studio houses in ‘Frame’, a new apartment block at Andermatt Swiss Alps that has been on the market since summer and will be finished in Q3 2021, has seen 10 per cent of all sales from buyers in Singapore.

With an expected completion date of Winter 2021, newly launched apartment block ‘Alma’, which comprises ten expansive half-floor residences and one whole-floor penthouse, is already 70 per cent sold – despite the pandemic’s impact on global property inflows.

 

 

Roughly 1 in 4 buyers across Andermatt’s multibillion-dollar development now hail from key Asian cities such as Singapore and Hong Kong.

Moreover, we’ve seen a 45 per cent increase in apartment rates for all units at Andermatt as of July 2020 (compared to the same period last year), with total sales increasing by 53 per cent.

Such data points act as further evidence of the growing appeal of Alpine living.

 

Why Switzerland fits the bill

With COVID firmly established as the backdrop du jour, Switzerland has emerged as an ideal investment destination – and there are a few key reasons for this.

Thanks to a strong domestic consumer that continues to drive sales of second homes in mountainous regions away from densely populated cities, local economies in these areas have proven resilient despite the global shock.

As already touched on, sustainability does matter to a new generation of real estate investors.

Andermatt Swiss Alps is leading by example on this front, with a five-year plan towards achieving carbon neutral underway despite so much of the development already being integrated with the surrounding natural environment.

 

 

Specific green initiatives include careful management of natural resources, golf courses that provide areas for nesting birds, a no ‘cold beds’ targets for holiday apartments, noise reduction, cooperation with local businesses, environmental impact monitoring, carbon neutral heating, and electric power from 1,005 renewable energy sources.

Green credentials aside, Switzerland is no slouch on hard investment economics, either.

Its record speaks for itself; returns on investments in a diverse selection of properties at Andermatt Swiss Alps has averaged 8 to 10 per cent per year over extended periods of time.

 

 

Once you factor in property appreciations along with rental yields, the return profile is clearly competitive with US equity market averages after dividends.you send us the test first??

Moreover, the security of the Swiss Franc, the prospect of growth in capital values, and the viability of rental demand continues to speak well to buyers.

 

A safe, central hub during a pandemic

In general, ownership in mountain regions tends to be a part-head and part-heart decision, where investors can enjoy the health and wellness elements of mountain living without sacrificing access to major European hubs like London, Frankfurt, Paris, and Rome.

It’s now beyond dispute that the Coronavirus crisis has made people all over the world consider how they plan to live in future.

Contrary to initial expectations, demand for property and sales volume in regions like Andermatt has grown substantially this year, as well-heeled buyers come to appreciate the safety, flexibility, and health opportunities such locations represent.

More broadly, the luxury housing market in Switzerland has performed well with prices increasing by 3.6 per cent over the last 12 months, according to Wuest Partners.

In our view, demand should continue to grow as the feasibility of remote working improves and the necessity to be within proximity of the office becomes less of an imperative.

 

 

For further information contact JLL International Residential directly at internationalresi@ap.jll.com.

01 Dec 2020

While travel is off the to-do list right now, don’t let that stop you from planning your next holiday when things get back to normal.

After weeks being confined indoors, make sure you head somewhere to enjoy the freedom of fresh mountain air and indulge in leisure activities like golf and skiing.

 

There are few places in Europe where you can get all this in one location, Andermatt, a village in the Ursern Valley in Switzerland.

It might even be the best time to pick up a holiday home at Andermatt Swiss Alps, that has developed into a year-round destination in recent years with apartment builds, hotels, and chalets.

The year-round resort comprises an 18-hole golf course, the biggest skiing area in Central Switzerland, six world-class hotels, and a variety of apartments, serviced residences and chalets.

 

Get natural in Switzerland

Whether it’s the breath-taking mountain scenery or heart-pumping activities, Switzerland is a popular destination in Europe in a cultural sense as well as an important financial centre.

While most people come for the high-quality snow and the skiing, it is also an attractive summer destination given the country’s many micro-climates.

 

There’s so much more to do than hitting the slopes, and the quintessential holiday to Switzerland wouldn’t be complete without some chocolate tasting, cheese sampling, fondue eating, and many more tasty cheese experiences.

Despite its moniker as the Rooftop of Europe, Switzerland is home to some of Europe’s largest and most beautiful lakes from Lake Geneva to Lake Lucerne. Switzerland is the perfect summer destination to try out water skiing, diving, and rowing.

 

Home. As it should be.

The newest one-stop destination to experience Switzerland will be at Andermatt Swiss Alps in the Ursern Valley in central Switzerland.

The SkiArena Andermatt-Sedrun boasts 120 km of ski slopes that cater to all standards and is served by 22 lifts. On the valley floor, a 18-hole, par 72 championship golf course has been operational since 2016, and it normally operates between May to October.

In addition, the Chedi Andermatt is a five-star deluxe hotel which welcomed its first visitors in December 2013, while the Radisson Blu Hotel and Gotthard Residences opened in December 2018, featuring 179 rooms and 110 suites.

Ten of the 42 planned alpine apartment buildings around the building square, named “Piazza Gottardo”, are complete and more than 90% of the completed units have been sold. All the residences come with fully integrated management and apartment rental services.

“With the vision by the developer for Andermatt, they are building a grand masterplan with a whole new town, and it has started to become a status investment for many affluent Asian investors,”
says Widya Lestaluhu, head of international residential for Singapore at JLL.

“There is also a growing trend among these investors to buy into more European destinations, and at the end of the day, Switzerland is a safe haven for investment and it has very appealing tax regulations with regards to foreign purchases,” she says.

 

New releases for sale

The next phase of the masterplan will see the completion of four more apartment buildings, as well as enhancements to the nearby municipal railway station and a planned hotel.

The next tranche of residential units will comprise 29 luxury apartments ranging from one- to four-bedroom units of 62 sqm to 136 sqm.

They are set to be completed by March 2022, and prices start from CHF775,000. These high-end apartments will be built in a contemporary alpine style, some of them complete with fireplaces, a sauna or a private garden.

 

The previous collection of alpine units was quickly snapped up by residential investors. Encouraged by the lack of restrictions on foreign purchases and resale transactions that is unique for the apartments in Andermatt Reuss.

In addition, the masterplan development is bringing dynamism to the local area, where there is strong demand for holiday rental homes.

Alpine real estate in Andermatt is also projected to see annual price growth of 5.8% over the coming five years, according to a 2018 research paper by UBS.

The developer has also brought in international real estate consultancy JLL to support its marketing and sales around the world.

Expected returns from real estate investments in Andermatt could also be around 3.5% per annum, making it one of the best destinations around the world, compared to property in Singapore where it can be difficult to yield returns of 2-3% at certain times, says Widya.

 

 

Learn more about Andermatt:

https://internationalresidential.jll.com.sg/andermatt-invest-switzerland-swiss-alps

 

Apartment House Arve:

 

Apartment House Enzian:

 

Gottard Lofts:

 

Disclaimer: This information is intended as a guide only and does not constitute advice. It does not constitute any offer or part of any contract for sale or otherwise. All details are approximate and have not been independently verified. Except where otherwise provided, all references to rent, income or price referred to in this information are GST exclusive. Users should not rely on this information and must make their own enquiries to verify and satisfy themselves of all aspects of the information (including without limitation, any income, rentals, dimensions, areas, zoning, and permits). While the information has been prepared in good faith and with due care, no representations or warranties are made (express or implied) as to the accuracy, currency, completeness, suitability or otherwise of such information. Jones Lang LaSalle Property Consultants Pte Ltd (“JLL”), its officers, employees, subcontractors, agents and clients shall not be liable (except to the extent that liability under statute or by operation of law cannot be excluded) to any person for any loss, liability, damage or expense arising directly or indirectly from or connected in any way with any use of or reliance on such information. The whole or any part of this document must not be reproduced without written consent from JLL. All forms of investments carry risks, including the risk of losing all of the invested amounts. Such activities may not be suitable for everyone. This is an overseas investment. As overseas investments carry additional financial, regulatory and legal risks, investors are advised to do the necessary checks and research on the investment beforehand.

22 Apr 2020

Have you ever wished of having a small hideout in the Swiss Alps? Here is an opportunity.

Under Swiss Federal Law, known locally as “Lex Koller”, international buyers need to get a special permit if they want to buy a property in Switzerland.

However, Holiday Village Andermatt Reuss is an exception. In 2006, the Swiss government ruled to exempt the village from Lex Koller. So far, the exemption is only until 2030.

Nestled in the midst of abundant natural beauty, the doors to this historic village in Switzerland are thus open to the world.

People from any nationality can buy a property in Andermatt. No restrictions. No special permission. That’s not all. You’re also free to rent, transfer or sell your property, as there is no minimum holding period or any inheritance or gift tax.

If you’re already feeling drawn to the offer and trying to imagine what awaits you, here is your window to heaven on earth – Andermatt – quintessentially Switzerland.

Popular among skiers and golfers, Andermatt is set in the Mediterranean ambiance in the Canton of Uri region. Surrounded by snow-capped mountains of Gotthard glaciers, the village sits at an altitude of 1,400 metres above sea level.

The picturesque village has preserved its culture and consciously made sustainability the cornerstone for its development.

 

Biodiversity features

  • • 52 water features
  • • 44 species of butterflies
  • • 24 species of birds

 

Dull moments in Andermatt? None!

A holiday destination for leisure and sports for over 200 years, Andermatt never has a dull moment. On the contrary, there is a lot to do, especially if you’re a nature lover or have a passion for outdoor activities.

During winters, there are options of snowboarding, sledging, tobogganing, ice-skating, ice hockey, biathlon and many such sports. The Ski Arena Andermatt–Sedrun with its 120 kilometres of long and varied pistes, deep descents and cross-country trails is the largest and most modern in Central Switzerland.

 

 

In the less snowy months, you can walk or hike in the region or cycle on narrow cobbled lanes or go fishing in the lake, or simply have a leisurely ride on a historic horse carriage. The village also boasts of having a lush 6,340-metre-long 18-hole Swiss Alps Golf Course.

Looking for adventure? You can go mountain biking through rugged trails or rock climbing.

The village doesn’t disappoint anyone.

The inquisitive minds will fall in love with Andermatt instantly.

At the Ursern Valley Museum, you can spend hours turning the pages of history discovering some interesting facts about the region. How the Schollenen Gorge and Gotthard pass became a gateway for people, business, and the war in 1799. How the Gotthard railroad tunnel opened in the 19th century. How Hollywood spotted it as a location for their 1964 James Bond movie Goldfinger, and slowly Andermatt transformed into a commercial and holiday destination.

Ever since then, the village had been on the international tourism map. 

Every year, it draws hundreds of music lovers to the Lucerne Festival – one of the most famous international festivals for classical music, held at the Andermatt Concert Hall. There are round the year open-air theatre performances, art shows, and many other cultural activities that attract the literary world to the village.

Food is an essential part of any culture. Andermatt too is known for its dining culture – local specialties as well as international cuisine.

 

Quality of life

In fact, Andermatt is all about an enviable lifestyle – culturally rich, healthy due to zero pollution and carefree because of guaranteed safety. The crime rate is considerably low in the region.

Motorised vehicles aren’t allowed on the inner roads. But as everything is within walking distance, the air pure and the roads safe, you won’t mind stretching your legs. Cars remain parked in the underground car parking with direct access to apartments, hotels, resorts, and chalets.

The village has preserved its heritage even in its construction activities. And it reflects in its architecture that integrates modern designs with the traditional alpine style. Only locally available wood and stones are used in the construction.

As Swiss standards for sustainability are strict, all developers follow that ensuring reduced energy requirements and use only renewable sources for electricity and heat generation. The developers even rejuvenated the River Reuss during construction activities.

 

Your connection with the world

Considering the quality of life, Andermatt is your natural paradise. But you’ll never miss the glamour of the city life with pulsating Milan just two-hour drive away. The village is well connected with the rest of Europe. The nearest airport is Zurich only 90 minutes away by car. You can take a regular train or the Glacier Express through the gorgeous Swiss Alps, or drive through breathtakingly beautiful alpine passes on the way to your destination.

  • • Zurich – 1.5 hours
  • • Milan – 2 hours
  • • Stuttgart and Munich – 4 hours

 

 

Tourism as a driver of growth

Andermatt is growing increasingly popular as a holiday destination. Accordingly, the demand for holiday rentals is also increasing.

According to Andermatt Swiss Alps AG data, the number of Swiss tourists has increased over the years.

  • • 2015 – 55,000 domestic tourists
  • • 2016 – 62,000 domestic tourists
  • • 2017 – 70,000 domestic tourists
  • • 2018 – 73,000 domestic tourists

 

The stability of Switzerland’s currency is another attraction drawing people to invest in real estate in this region. Swiss Franc remains in global demand and provides security for capital invested.

Besides, the country has attractive tax policies and is known for high legal security and political stability. According to a KPMG report, the Canton of Uri offers lower corporation tax rates of 14.92% and offers the choice of lump-sum taxation for non-Swiss nationals.

 

Benefits galore

Normally, the safety of the property and its upkeep remain major concerns of any foreign buyer. But this is not the case, especially if you are buying from the developer Andermatt Swiss Alps AG. They’ll help and guide you in every step of the process or may go the extra mile.

You would be surprised when they encourage you to generate income through the property if you don’t live there. They offer financial incentives as well as a rental program to rent out the vacant apartment.

Also, if you neither want to stay there nor want to rent out your house, yet wonder who would look after it in your absence, you need not worry. The developer has tailor-made services to offer.

While staying there, you can enjoy the comforts of your home but the luxuries of a hotel.

  • • Concierge – they will arrange ski instructors, golf lessons or even take care of restaurant reservations
  • • Housekeeping including laundry service – you don’t need to waste time doing mundane chores
  • • Shopping assistance – in case you’re busy in outdoor activities, they will organise your basic needs

 

If you decide to lock your house and head back home, the developer will look after your property.

  • • Apartment maintenance – they ensure regular cleaning of your apartment in your absence

 

There is more:

  • • 20% discount on a full-day pass to SkiArena
  • • 20% discount on the green fee for the golf course
  • • 10% discount on spa treatments in the Chedi Andermatt

 

As a privileged resident, you also get a Guest Card from Andermatt Tourism Region that allows you to avail a variety of tourist offerings at special terms and rates.

For further information contact JLL International Residential directly at +65 6220 3888 or internationalresi@ap.jll.com.

 

24 Mar 2020