The villa on the Suvretta slope, the condominium on the Via Tinus or the old Engadine house in the Dimlej area: even those who could afford such a property will hardly be able to buy it. The reason: such properties practically no longer come on the market. What was still available was sold in the last two years. And: "Anyone who owns a larger and more expensive property sees no reason to sell it. The market has completely dried up." Franco Giovanoli, head of the St. Moritz office of Ginesta Immobilien, said this at a recent event.

Normalisation of demand

However, a decline in real estate demand can also be seen in the Upper Engadine. "After Corona, it had to be expected in the medium term, what is happening now is a normalisation at a good level of demand." In his sales activity, Giovanoli notes that those who are now looking for a property are doing so in a targeted manner and that deals are being concluded quickly. "Overall, however, the real estate market in the region will remain good," Giovanoli summed up. In other words, the demand overhang will remain and transaction prices are likely to remain high in the coming months and continue to rise slightly. Since the outbreak of the Corona pandemic in 2020, property prices in the Upper Engadine have risen by between 20 and 40 per cent, depending on the municipality.

There are hardly any limits upwards

If the Upper Engadine remains the measure of all things in terms of real estate demand throughout the canton, then this is especially true for St. Moritz. The 2023 market report recently enclosed with this newspaper shows that the highest prices are paid here in the canton, indeed in the whole of German-speaking Switzerland. In concrete terms: upscale condominiums cost up to 25,000 Swiss francs per square metre of living space, luxurious properties cost more than 30,000 Swiss francs, and in the preferred residential areas, 55,000 Swiss francs are sometimes paid. One of the most popular villa areas in the whole of Switzerland is the Suvrettahang. If you want to buy a luxurious property here, you can expect to pay 75,000 Swiss francs per square metre - if you find one. Prices in St. Moritz Bad and Champfèr are somewhat more moderate, at around 20,000 Swiss francs for an upmarket property. The level is similar in the communities around St. Moritz, while in the Plaiv prices range between 12 000 and 17 000 Swiss francs.

More expensive financing

Guest speaker Andrea Ammann from Wüest Partner in Zurich spoke about the general environment for the Swiss real estate market. market. One topic that has preoccupied the year that is coming to an end is the turnaround in interest rates. This has been very clear. While the National Bank's key interest rates were minus 0.75 percent a year ago, they have since climbed to plus one percent. Because mortgage rates have also risen accordingly, buyers are now faced with a completely different financing environment. "With such a strong rise in interest rates, there should actually be a price collapse on the real estate market. Surprisingly, however, prices have remained stable with slightly lower demand," said Ammann.

Low construction activity

He sees several reasons for this. For one thing, the Swiss labour market is still dynamic. There are many vacancies that increasingly have to be filled by foreign workers, which increases the demand for housing. Secondly, although the economic outlook is somewhat subdued, the level of inflation in Switzerland is still low compared to other countries, which supports the real estate market. And finally, new construction activity has been declining for several years, which means that too few new flats are coming onto the market to meet the high demand for housing.

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Stable high demand meets a dried-up market: real estate in the Engadine remains expensive, with St. Moritz occupying the top position in the canton. This is unlikely to change in the near future.