A guide to investing in real estate in Verbier …

A charming ski resort in Switzerland with a view of the Mont Blanc range, Verbier sits on a south-facing plateau which gives it plenty of sun all year round while offering wonderful mountain views.

Located at the entrance to the Quatre Vallées ski area, this resort is one of the favorite destinations for skiers around the world, and its high-end reputation is certainly also known worldwide.

While some people are content to rent a property in Verbier, others see the potential to invest in real estate in Verbier. If you are one of those people, this article will help you make a good investment.

Why Verbier?

If you want to know why Verbier should be your first choice for investing in a ski chalet, there are several reasons for this.

This luxury ski resort has an undeniable charm and most of the properties here have been built in an Alpine style that combines tradition, luxury and modernity.

Not only is it a luxury resort, but it is also a high-performance resort. Sitting at an elevation of 5,000 feet with over 250 miles of ski slopes in the surrounding area, it’s easy to see why this place is every skier’s paradise. The infrastructure here is modernized every year, so you can be sure that the resort will always keep its dynamic character.

If you like the culture of good living, Verbier is certainly the place for you. Not only does it provide opportunities for skiers and boarders of all skill levels, but there is also an array of winter and summer sports that you can choose from and lead a healthy, active lifestyle.

And finally, the main reason for choosing Verbier is undoubtedly its incredible wild nature. Snow-capped peaks, mountain lakes and the overall lack of pollution are every nature lover’s dream.

The real estate market in Verbier

Due to the local laws of Switzerland, anyone who has ever tried to buy a property there will tell you that it is no easy task. However, this is not impossible as international buyers from all over the world buy properties here every year. They just see it as a great investment opportunity.

Since Verbier is one of the most expensive ski resorts in the world, owning your own property can pay off in the long run if you decide to rent it out during the winter seasons.

Average property prices in Verbier are around £ 16,000 per square meter and property prices are only up 2.9% in 2020. But don’t be scared off by the high prices of the property. market, because the tax system in Switzerland is very favorable.

The market itself is very stable, mortgage rates are low, and there is no inheritance tax. A local bank will offer you attractive mortgage rates even if you are a foreigner, so buy real estate in Switzerland doesn’t have to be a big strain on your finances.

However, the expansion of the real estate market has been limited due to the relatively recent Law on Second Homes, which regulates the construction and ownership of second homes.

What are the best areas for investing?

Since Verbier is the largest resort in the Four Valleys, there are many areas where you can find a great property to invest in:

  • Sonalon: The largest residential area in Verbier, Sonalon is located northwest of the city center and enjoys excellent snow conditions. However, it is difficult to reach the area on foot, so all residents usually drive cars. Here you can find the best views of the whole resort.

  • Les Esserts: Located in the “golden triangle” of Verbier, this district is more accessible and also offers a breathtaking view. It is between two ski lifts and a short walk to town. Les Esserts is one of the oldest residential areas and has more traditional chalets than apartment complexes.

  • Moulins: This area is popular with young families because it houses the Swiss Ski School’s children’s club and is generally very quiet. It has a flatter gradient, which means the outdoor space is more usable than in other areas.

  • Place Centrale: This is the city’s main hub, connecting all of Verbier’s main roads. The area is full of high-end retail stores and is generally favored by wealthy visitors and owners.

What to know before investing in real estate in Verbier

Finally, let’s go over a few other things you should be aware of before you can invest in your ideal property.

Who can buy a property?

A foreigner can buy a property from a Swiss citizen or other foreigner if the sold property has been in the possession of the current owner for at least 5 years. You will need to sign a declaration of intent which will be sent to the land register for approval.

What are the fees?

The costs associated with the purchase of real estate include purchase costs which are approximately 2.3% of the price which include notary fees and registration fees. There are also some common expenses you should be aware of, like insurance premiums, snow removal, electric and heating bills, and sewer charges, to name a few.

What are the taxes?

For a new property, taxes range from £ 5.5 to £ 7 per square foot, and for an older property you can expect £ 4 to £ 5 per square foot. Other taxes you should be aware of include insurance, which can be £ 150-300 per year, management, electricity, and insurance, all of which are calculated based on your consumption.

Can you get a mortgage?

Banks offer mortgages to foreigners which typically cover up to 66% of the purchase price.

Whether you are looking to buy a property to live in one of the best ski resorts in the world or rent it out to tourists, real estate in Verbier is a great investment. Although it may seem complicated at first, refer to this guide, do more research on the subject and you will be the owner in no time.

* Agence ABC is a real estate agency based in Verbier, Switzerland

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