In the last 10 years Andermatt has been transformed from a sleepy backwater to a first-rate dual-season resort with a hot property market. We examine the latest property trends and look back at its remarkable story.

Andermatt property for sale – unique exemptions from Swiss property laws.

Unique in Switzerland, there are no restrictions to buying a property in the Andermatt Swiss Alps development. The project’s promoters secured an exemption from the Koller law on home ownership for foreigners until 2040, meaning no permits are necessary to purchase a property. Also the development is exempt from the Lex Weber act restricting the building of new second homes to 20% of the total housing stock. Thus, new properties here can be either primary or secondary residences. Furthermore, foreigners may buy as many properties as they like for investment purposes (even under a corporate structure) and resell them without a minimum holding period. Foreigners are usually restricted to owning one second home in their personal names, not for pure investment and the holding period is usually 5 years. Mortgages are available from Swiss banks with LTVs of 65% of the LIST price of the property.

Copyright Andermatt Swiss Alps – Valentin Luthiger.

A flexible rental management offer for owners.

The properties can be rented out through the resort’s rental management operation, though there is no obligation to do so. This provides owners with additional peace of mind that their investments will be looked after and work for them – perfect for “lock and leave”. Yields are between 1-3% net, based on 30 days of personal use per year and conservatively assuming 30% occupancy rates. For reference, occupancy at the Chedi Andermatt hotel averages 70%.

Copyright Andermatt Swiss Alps – Montamont.

A favourable tax regime for buyers.

Since the canton of Uri has no property transfer tax, the purchase costs are very low – around 0.3%. In addition, Uri has the second lowest income tax rate in Switzerland and there is no inheritance or gift tax. Foreigners seeking to move their primary residence to Andermatt can take advantage of one of the most fiscally advantageous lump sum tax deals in Switzerland, with no requirement to declare global income and assets.

Copyright Andermatt Swiss Alps – Valentin Luthiger.

The highest capital appreciation in the Alps over the last 10 years.

The net effect of all of the above is that the Andermatt property market has grown significantly since 2012 and prices have risen on average by 7.3% per year for 10 years. This level of capital appreciation is really unusual in Alpine ski resorts, and property sales are breaking records with a 22% rise in 2022 from 2021. Average prices per sqm of the latest releases of property are now around CHF 18,000.

You may be thinking, with all of the exemptions designed to attract foreigners that they are the largest marginal buyers of Andermatt properties. Not quite. Actually 50% of buyers are Swiss residents.

Source: UBS.

An alpine crossroads in the heart of Switzerland. 

Since the 13^th century the village of Andermatt has occupied an important strategic position at the nexus of trade routes through the Alps. To the north lies Lake Lucerne, east is the Oberalp Pass and the canton of Grisons. The Gotthard Pass to the south is the gateway to the canton of Ticino and Italy. And to the southwest is the Furkka Pass over to the canton of Valais and the Rhône Valley beyond. From 1885 it was the headquarters of the Swiss army and the garrisons remained until the mid-1990s. The resort enjoyed an enviable ski mountain, the Gemsstock, and an attractive old village on a flat valley floor, interspersed with barrack buildings. But with the gradual decommissioning of the army base the region was in need of economic rejuvenation.

In 1999 the army released large land parcels that were suitable for development. The town’s fortunes took a turn for the better in 2005 when the Egyptian company Orascom Development foresaw the town’s potential as a leading holiday destination. In 2007 96% of the village’s population approved its redevelopment plans and by 2009 all permissions were granted to start construction of the new village, Andermatt Reuss. The transformation of Andermatt could begin.

Copyright Andermatt Swiss Alps – Valentin Luthiger.

A CHF 2 billion investment programme to create a prime year-round alpine destination.

By any standards the development project is ambitious in its scale, comprising:

• Six 4* & 5* hotels including the award-winning Chedi Andermatt in 2013
• 42 residential buildings with spa & gym facilities and 500 apartment units
• 25 stand-alone chalets
• A championship golf course – opened in 2016
• A 663 seat concert hall – opened in 2019
• 9800m2 of retail and restaurant floor area
• Expansion of the ski area with gondolas to Nätschen and then Gütsch started in 2016
• Connection of the ski area to Sedrun in the neighbouring canton of Grisons in 2018

By 2021 Andermatt could boast 3 Michelin starred restaurants and another opening from a Michelin starred chef is on its way. Of the 42 apartment buildings, 22 have already been delivered, 10 are under construction and a further 10 are in planning stages. 30 new shops will open by the end of 2024; the resort is only 1.5 hours from Zurich and 2 hours from Milan and attracts as many visitors in August as in January. The goal is to create a year-round lifestyle and a community of owners and visitors in the new resort which complements the old village next door.

Of the CHF 2 billion investment programme, 1.5 billion had been spent by the end of 2022 with a further 500 million earmarked in the next 3-5 years. This will include a CHF 170 million investment in the Dieni Resort extension with 13 buildings and 1800 beds on the Sedrun side by 2027, which is currently in planning.

Copyright Andermatt Swiss Alps – Valentin Luthiger.

Skiing in Andermatt – 21st century infrastructure & sensational off-piste.

In 2012 the ski lifts were taken over by the new company and a CHF 127 million investment programme was started to improve and expand the ski areas. By 2018 Andermatt could offer 180km of ski pistes and 22 of some of Switzerland’s most modern ski lifts.

The famous Gemsstock mountain offers 30km of ski pistes up to 2961 metres. The piste designed by champion Swiss skier and Andermatt local Bernhard Russi is a thigh burning 4.3km black run with a 65% gradient and 950 metre elevation drop. And with 100 freeriding descents Gemsstock is considered one of the best off-piste areas in the World with up to 1500 metre elevation drops. The Gütsch mountain is perfect for a more leisurely and family friendly ski; its famous restaurant has fantastic views. The connection to Sedrun provides long cruising runs for beginners and intermediates. And the long and flat Ursern Valley floor is ideal terrain for its 28km of cross-country trails.

Copyright Andermatt Swiss Alps – Roman Tyulyakov.

Andermatt becomes part of Vail Resorts’ Epic Pass.

In 2022 Vail Resorts, the leading global mountain resort owner and operator, took a 55% equity stake in Andermatt-Sedrun Sport AG, the owner of Andermatt’s ski infrastructure. Of its CHF 149 million investment, 110 million will be used for capital investments in the mountain operations including ski lifts and gastronomy. The remaining CHF 39 million will be added to the CHF 350 million investment programme by Andermatt Swiss Alps AG which already planned for further development of the core hotel and residential offering in the next three to five years. Thus, Andermatt became the first European Alpine resort to offer access to Vail’s 42 resorts owned and operated in the USA, Australia and Europe as well as its partner resorts in Europe (5 days in Verbier 4 Vallées, 7 days in Les 3 Vallées, 7 days in Skirama Dolomiti, 3 days in Ski Arlberg) and Japan. (n.b. on November 30^th 2023 Vail announced the acquisition of a majority shareholding in Crans Montana Mountain Resort in Switzerland, its second European resort acquisition after Andermatt).

Copyright Mike Niederhauser.

Sustainability at the forefront of the project.

Any development of this size will naturally involve an increase in emissions as it is built out. However, the development is well on its way to achieving the following goals by 2030:

• 100% carbon neutral electricity in all buildings and facilities – achieved
• 20% less waste in the incineration plant – achieved
• 100% climate neutral heating in all buildings – 75% achieved
• 100% climate neutral passenger vehicles and expansion of the charging infrastructure -10% achieved

Andermatt Reuss is car-free, all of the ski infrastructure is powered by hydroelectricity, the piste groomers are hybrid and all the buildings are Minergie-standard certified. The resort operates a zero PET policy.

If you would like to discuss opportunities in the latest properties for sale at the remarkable Andermatt Swiss Alps project, contact us at david@alpinepropertysearch.com or via the Contact Form.

All images courtesy of Andermatt Swiss Alps.