Recently, Ginesta Immobilien AG published the 2021 market reports for the Upper Engadin municipalities of St. Moritz, Pontresina, Celerina and Samedan. There are differences between the individual municipalities in terms of the sales prices achieved, but what they all have in common is that the supply of properties on the second-home market is scarce. This scarce supply is meeting with brisk demand, especially from Swiss buyers, which in turn is causing prices to rise. Prices that are already close are close to their pre-2012 highs. This is particularly pronounced in St. Moritz, where the highest prices are being paid cantonally and in some cases also nationwide. For upscale condominiums, up to 20,000 Swiss francs per square meter of gross floor area (GFA) are paid, luxurious properties fetch up to 26,000 Swiss francs, rarities sometimes even significantly more. However, the location must be right. Prices are already lower in the Bad district, and in the neighboring village of Champfèr and Silvaplana, prices are 20 percent lower, according to Ginesta.

Top prices on the Suvretta slope

Particularly sought-after in St. Moritz are the few single-family homes that come on the market. A good location combined with luxurious finishes sells for 30,000 francs and more per m2 of gross floor area; on the Suvretta slope, one of the most popular villa areas in Switzerland, prices can sometimes reach 65,000 francs. According to Ginesta Immobilien, the St. Moritz second-home market is in very good shape. After a correction phase until 2018, transaction prices for single-family homes would rise again, with an intensified upward trend in the last quarters. In the case of condominiums, prices would have stabilized from 
2018 and are currently showing a noticeable upward trend. In this segment, prices are now only five percent below the previous record levels.

Vacation apartments for rent in demand

In terms of sales prices, the two neighboring municipalities of Pontresina and Celerina are already unable to keep up with St. Moritz. For luxury condominiums, the average selling prices in Pontresina and Celerina are 18,000 francs, for luxury properties 25,000 francs. Even more is paid for single-family homes. In Celerina, however, these do not come onto the market at all. The supply ratio (number of properties offered in relation to the inventory) is zero, while in Pontresina it has risen slightly year-on-year to 4.5 percent. For condominiums, the offer rates are 4.1 percent (St. Moritz), 4.6 (Pontresina) and 3.1 (Celerina). For Ginesta Immobilien, markets are intact and efficient at an offer rate of six to eight percent. In all three communities, the real estate company observes a high demand for rental apartments as vacation homes. 

Strong correction in Samedan

This also applies to the municipality of Samedan. At 2.2 percent, the supply rate is even lower than in neighboring municipalities and lower than it has been for many years, which suggests a high demand for rental properties for vacation purposes. As a center town with a wide range of functions, Samedan has an above-average number of rental apartments for locals. This is also reflected in the sales prices for condominiums and single-family homes, which are up to a quarter lower than in neighboring municipalities with a stronger tourist focus. While prices for single-family homes in Samedan have been rising again since 2017 and are close to their highs, the market for condominiums experienced a correction from which it has not recovered to date. After 2012, prices fell by around a 
quarter and have now been trending sideways for several months. A slight upward trend is expected for the coming months

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