Hello and welcome to Knight Frank Ski property webinar. I'm Kate ever Allen, head of global residential research here at Knight Frank and author of our annual Ski Property report, which we published last November and is now in its 14th year. Today we're keen to share the reports, findings but also. Update you on what we've seen across our ski markets since the season began. We'll be speaking to our property experts working in both the French and the Swiss Alps to gauge their thoughts on the outlook for the market and what they're seeing in each of their respective resorts. The session will last no more than 30 minutes. We'll start with a brief overview of the key findings of the report and then we'll turn to our panel discussion where we'll be joined by Roddy Airis, partner in the International Department who overseas sales in the French Alps and Max Raines, our colleague out in Shamani. And for Switzerland, we've got Alex Koch, degree end partner in the International Department and his eyes and ears on the ground, Annabelle Common who is based in Verbier but covers resorts throughout the Canton of Valley. In terms of logistics, if you have any questions for our team at any point throughout the webinar, please send them in using the Q&A box on the bottom right of your screen. And for those questions that we don't manage to answer today, we will follow up after the webinar by e-mail. Our goal today is to provide you with the information that you need as either existing homeowners or potential buyers to make an informed decision on your property investment and to help you navigate what can be a daunting task for those unfamiliar with overseas property markets. But rest assured, our team are on hand to assist, so do please get in contact with them if you want to know anything that could be from the technicalities of the buying process to what to budget. Of tax costs, or even simply the best nursery slopes for your children to learn to ski. So where are we at? We've had three years of stop start ski seasons due to the pandemic each year we started the season with really great optimism only for travel bans or restrictions to curtail our and also our clients plans. So now, with the pandemic hopefully in the rearview mirror, property markets are facing new challenges. Uncertainty is rising, recessionary fears are mounting, mortgage costs are on the up. So what does this all mean for a niche property market such as ski homes? Well, whilst the economic landscape is shifting, there are several factors which are still supporting demand and pricing. First off, we've got hybrid working, so that's allowing employees to work remotely for longer periods. We've seen more coprimary living, so people are spending longer in their second homes and that's been one of the key trends that we've identified in 2022. There's also a lack of new supply, so strict planning rules in the French Alps and also restrictions on 2nd homes in Switzerland mean that market fundamentals, so the demand and supply balance remains robust, plus people are. Priority time prioritizing time with family and friends. The pandemic took away holidays and shared adventures with loved ones, and people are reevaluating their lifestyles. And for those that can afford to, a second home provides them with an opportunity to make up for that lost time. And finally, the pandemic has also sparked a rekindled love for the great outdoors and also heightened interest in fitness and well-being, all things that the mountains deliver in spades. So with this in mind, it's perhaps no perhaps no surprise that this year's Ski Property Index registered its strongest rate of growth for eight years. The index, which tracks 23 top ski destinations across the French and Swiss and Austrian, Austrian Alps, reveals that prime prices increased 5.8% in 2022, up from 4.6% the previous year. The Swiss resorts of Crown Montana and San Moritz lead the annual Price growth rankings. Up 14% in the year to June 2022, a lack of supply and the increasing pull of year round resorts which offer a broad range of activities in the summer months explains both resorts outperformance. But the mood is shifting and whilst the high proportion of cash buyers in the Alps will be less exposed to the rising mortgage costs, the sector will face headwinds and the rate of price growth is expected to moderate after the exuberant pandemic years. For the French Alps, Legeay and Morzine lead the rankings this year, with prices climbing 11% and 9% respectively. Overall, although the Swiss resorts outperformed their French counterparts for the second year running in 2022, this follows 8 years when the French resorts were on top. So that is a whistle stop run through the reports main findings. Now let's add some colour to the stats and find out from our team of local experts what's changed since the report and how they see their markets shaping up. So as I've touched on. In our research summary, we've seen an exceptional period of strong price growth during the pandemic. And I wonder, Roddie, do you now think that prices are inevitably going to fall or do you think they're gonna display some resilience? Well, excellent question, Kate, and it's the one that's on everyone's mind. I think we need to look back at 2008 when there was a last crash and the reasons for that crash obviously were predominantly as a result of unregulated lending and uncontrolled lending and and people being overleveraged. I'm pleased to say that that hasn't been the case for a long time now. It's far more regulated. And as a result, it's a, it's a much more stable market. Our price is gonna soften. You talked about the headwinds. Yes, of course, rising in mortgage costs, interest rates, cost of living, the war, all of these things are putting stress on the market. However, I feel a softening of prices rather than a lowering of prices and indeed in certain markets still potential for price growth. And these are the markets with. There, I say. More meat on the bone. So the likes of Lazarus, Marzine, Kornblau lager. These are markets which are are comfortably priced and I feel have further to go. Alex, are you equally optimistic in terms of the Swiss markets? Yeah and I think I agree completely with Roddy. You know, yes of course we've got headwinds ahead but in reality in the Swiss market you know we have the advantages of of fairly low interest rates in Switzerland compared to other jurisdictions and there is a huge lack of stock across the major resorts in Switzerland which I think will keep prices to a certain level. I do suspect that there will be some kind of. Toughening in the future, but the one thing that the Swiss have done predominantly is really focused on helping those resorts and trying to make them attractive as a year round destination. So the point you made earlier really of the of how people want to use their property much more as that sort of Co primary, I think that will really come into play with the some of the Swiss resorts. Great. Thank you. Now the question that we're asked a lot by our press contacts is what impact has Brexit really had on the market? Has demand, for example, from UK residents dwindled in the Alps? And I guess it's probably more a question for the French Alps given Switzerland's not part of the EU. So Roddy, can I come to you first? What impact have you seen as a result of Brexit? Well I think straight off the bat I'm I'm happy to report that demand hasn't dwindled. It's remained as strong as ever if not if not stronger. So yes the the way you use a property and the way you own a property of course has changed now with the the 90 days and 180 day rule. But realistically does that affect our clients on a on a on a day-to-day or yearly basis? Not really it's still their holiday home it affected. Those that moved to France maybe to retire and we're still holding a British passport, they're the ones that probably felt the pain a little bit more. Where it did have an impact however is on financing it's become it's become very very stodgy and and the likes of being Paribas that was the number one lender in France has pulled out altogether because they no longer have have the the regulations and the controls that they had during during what pre Brexit. So that is that is putting a certain amount of stress on the market but what but what it means is we're now seeing a record number of cash buyers. So, so the impacts mainly on the finance side, not on the demand side. Yes, absolutely. Right. And in terms of Switzerland, yeah, I think as you as you quite rightly point out, they're not part of the EU. So it wasn't ever going to be as much of a big deal as it was potentially in France. The only thing that probably we would say is that the Swiss, if you were considering a relocation to Switzerland, the Swiss do regard somebody with an EU passport arriving in the country in one way, which obviously allowed the the the British passport holder at the beginning to to have. That same consideration and now we're treated like anybody else in the world. So that process just takes a little bit longer, few more hoops to run through, but otherwise very little. Great. Now we've had some questions come in already. One is in relation to climate change. So one probably for you Annabelle and Max. I think given you're on the ground, how big a concern is climate change in the Alps and and what are resorts doing to future proof their markets. Max, perhaps I can come to you first. So yes the climate change is is absolutely a concern across the Alps as it is all around the world at the moment and we see it most starkly here with with over the last few seasons and and colder winters. And but that said because we we as in in the Alps and individual resource benefits so much from from that summer and winter tourism there the resorts are being very proactive actually. And and and have have some rather interesting, interesting steps and measures that they put in place. And take shamani here for example, the Mary or the town hall has just pedestrianised the whole of the centre of the town, so although there are still fully electric shuttle buses to to transport transport people around and after 10:00 AM every morning it's pedestrians. Really. And which actually makes for a for a really nice atmosphere as well as a as well as a greener and town centre and and then elsewhere across the Alps. And if you take Sasha Valley in the Southern Alps for example, they have installed solar panels on all of their lift apparatus. So the gondolas, the bubbles and the and and the ski chairlifts they have all now covered in in solar panels to with a view to them achieving carbon neutral. Systems and in the coming years and then another quite interesting and exciting initiative that that took place in Courchevel Meribel was something called snow farming. So throughout the winter they gathered snow and moved it to a N facing piece and covered it all through the summer with a view to keeping it through to the following winter. And that was all actually part of preparation for them hosting the 2023. Downhill World Cup and so yeah, this there's lots going on all over the apps. Fascinating. Thanks, Max. Annabelle, what's happening in Verbier and the Swiss Alps? Anything similar? Yeah, I mean it's, it's very similar to be honest. Switzerland is equally as committed to minimizing its impact on the on the environment like Max mentioned here too. Actually one of the initiatives they put in place is covering the the glaciers. They've done that here at the moonfall in Verbier and also in the the Gershen Glacier in Andermatt. Equally a lot of the big main lift stations have also been completely covered and equipped with voltaic solar panels. Also, a few years ago they actually replaced all of the snow groomers in lots of the bigger Swiss resorts. Certainly here in Verbia and in Chrome Montana, they've been updated and are equipped to measure the depth of the snow beneath them, which actually enables them to calculate precisely how much snow needs to be produced and distributed appropriately on the slopes. So means that nothing's done in excess. They're actually very similarly with the lifts. They've actually can be operated at varying speeds. So this means that they can tell how many people are on them and therefore economise the amount that they actually the energy that they need to use them so and that all of that as well. Again similar to to France, there you know there's a lot of marketing and not a lot of initiatives to take people out of their cars and get them on public transport. So since 2019 there's now a direct train from. Geneva airports directly to to the shadow, which is just at the bottom of Verbier. And now the the Lisab left actually is being bought by the Swiss federal train company. So that runs from 5:00 AM in the morning to midnight. So all of the train connections work. So essentially you can get a train from the centre of London straight up to Verbier. So I don't even need to get on a plane. So super efficient, brilliant. Thank you. Just thinking about sort of the practicalities of somebody. Wants to to purchase in the Alps and I'm conscious some of our clients will probably be new to buying abroad and it might be their sort of first venture into that that world. And with that in mind, I just wonder maybe Roddy and Max if you can sort of give us your thoughts as to what a prospective buyer should put in place before they actually get on a plane. What are the the key logistical things that they should action right now? Body shall I stop, please? Well, first of all, there are no restrictions for buying in France. For for a, for Britain, indeed for anyone else. I think key. Factor to consider at the moment is the speed of the market. It is undoubtedly, and I think Alex will back me up on this. The tightest market that I have ever seen in terms of stock there is very, very, very tight stock. And so anything that's that's good or that's even half good is getting snapped up very, very quickly. Just to give you an idea of what that looks like, the last four deals that we've done in London, the Alpine team have been done virtually. So these are people who have gone on iPads, on iPhones. Or teams meetings and they've done a viewing with the team on the ground and have bought off the back of a of a virtual tour. So that's that's the first consideration but that's not for everybody. You do need to be quite brave and and very sure of of what it is that you want. So someone who's just beginning to to look into the market and dipping a toe, they wouldn't do that. This is for someone who understands the market I think the key. Factor is I think financing. We touched on it earlier. It is, it's cumbersome, it's long winded, but I would say so before we were doing maybe 70% of our deals were subject to finance. Now I think that's gone down to about 30 or 40%, but there are still people that want financing for whatever reason that may be have that conversation first. That's absolutely paramount before getting on a plane. Why? Because when you come to presenting your offer, we need to be able to. Present to you in the best light. So financing in place, ready to move as fast as possible. Great. Thank you. And Max, what do you see from your side once people arrive on the ground over in chamani? What are the things that you would recommend they need to put in place? And certainly just just to echo what what Ronnie has said, it's just it's all about having your ducks in a row and so the finance and having an idea of of where and what you're looking for. And that in terms of the prep pre visit is you know can involve going through the the virtual virtual visits that we have on the on all the property listings and speaking to us on the ground and using that time to to do FaceTime viewings, to do WhatsApp viewings, you know. Off the back of the pandemic, we've become super equipped to um. To take take clients on virtually so do as much of that as possible in advance and and then and then when you are on the ground and be prepared to AC as much as possible and and make sure that your time is is is best used and and then yeah finally again as as Roddy said the market is so hot that you want to be coming to the resort in a position to be able to say yes please let's go and because ultimately if it. If it's a, if it's a, you know, a nice property then there will be a queue and it's just it's first come, first serve. Yeah, I'd love to jump in there. OK, if I may. I think that's really, really a key, a key element and certainly a message that's worth conveying is that I'd say a lot to my clients and here is that it's important to be extremely patient because there is a lack of stop. But when the, you know, but you have to be ready to react fast and certainly in in Switzerland. A Swiss buyer can buy a lot quicker than a foreign buyer, so it's really, really important for our clients to do as much as their prep as they can before they get on their planes. Certainly, as as Roddy said, come with your financing sorted and a proof of financing. Come with all of your personal information ready to give to a notary, basic things like passport copies, things like that because. Again, as Rudy's, I mentioned earlier, the last three sales that we've done, we've actually had foreigners with higher offers and it's a Swiss buyer at a lower offer that's won just because they're ready to move forward quicker. So if you've got all of that ready to go then you can, you know, you give yourself a huge head start. Great. Thank you. That's really useful information. Um, so while we're on Switzerland, I'll come to you Alex. First. We hear a lot about the rules and regs about buying in Switzerland. I just wonder how complex is it really for a purchaser, whether you're British or European or wherever, how difficult is it? Well, everyone always gets very worried about what this might mean in theory the the rules fairly simple, um, a foreigner or a non Swiss passport. Older non resident of Switzerland can buy their restricted to buying in designated holiday zones, which effectively as every ski resort within those holiday zones a foreigner can buy one property per named individual with a maximum of 200 square meters of official living space. Sometimes that gets increased a little bit if you've got a larger family and can justify that extra spacer, maybe 202, fifty, something like that, but essentially that's the rule. That's as simple as it gets. And this one. Opportunity to a named individual does sometimes allow for larger properties. Maybe Annabelle you can give me a bit more of an example of some of the things where you can get maybe a slightly larger properties than the 200 square metres. Absolutely. So the two hundred 250 square metre is limited to each individual. So that means if you want to buy a 500 square metre chalet you can you just have to purchase in two names. The caveat on that is is that the two people buying it has to be Direct Line inheritance. So unfortunately they don't. Trust marriage couples. You have to be the you know, brothers and sisters, children or you can be a you know, a finance partner. Children have to be adults so they have to be older than 18. But what's also key is that that 202 hundred 250 square metres. The way that that's calculated is purely on the internal habitable area. So you know an actual salary. It's it's full surface area, could be around 400 square metres but what the foreign authority. Authorities are looking at the FIU is purely the internal habitable area. So you could have a 400 square metre shallow which is actually 200 and 250 square metres internal habitable and according to the foreign authorities. Yeah, which is, which is quite often while you'll see on sets of details there's official living space, usable space and you know so it's it's divided up that way so don't be confused you know ask the question we can help. Brilliant. Thank you. Right. We've had a fun question come in. So I'm going to direct this at Roddy and Alex for Roddy, you first I think assuming your luck was in and you had a £5 million budget. Where would you purchase in the Alps right now, which was obviously it's gonna be a French Alps resort I'm sure, but thinking of it purely from a lifestyle point of view, so in terms of the ski offer, maybe the spas, the restaurants, etcetera, what where would you go easy? Easy. Well, I was born in the foothills of of the apps in the genre, and I learned skiing in shamani. So I would, I think, undoubtedly come back to Chebani. Why? Because for me, shamani is. The only Alpine resort that is the complete package and by that I mean year round. So there are some that'll be dual branded, so dual branded, dual season, a little bit in summer and mainly winter ceremony just doesn't sleep. It's active all year round, £5 million, gastro generous, thank you. I'll have a shallow, I'll have a nice chalet just outside Shamani in Lino facing the more blah panorama. And how many bedrooms would that have, what would that would give me 5. Beds, 5 baths. Maybe even a spy if if I wanted. Nice. Yeah. Now I noticed your esteemed colleague shaking his head then. I mean, I don't know why he wouldn't think about Switzerland to be fair, but you know I'll give him his dues. That's fair enough. That's a family history behind it. Look, from my side, look 5,000,000 fantastic. Thanks very much. I think. Mean you can't ignore things like the story that we've been hearing about places like Cornwall, Danner and Vilar where they are proper year round resorts and amazing for opportunities that are there. But without sort of sounding so slightly similar to Roddy, and especially with my colleague on the on the the call as well from the resort, it's probably hard to step away from Verbier. It. It is the accessibility. If you looked at the report, the accessibility is such a key ingredient. I just think it'd be amazing for my kids when they grow up, it's gonna jump on a flight and come and get on the train in Geneva airport. I don't have to worry about them. They're getting straight to the resort without me having to worry. The resort has all access of different types of skiing, great restaurants moving in and the now the summer season is really kicking off. Appreciate that I probably can't afford the big chalet that that Roddy is going for and I might have to go for a really cool penthouse with a lovely view. But you know what, that's pretty good for that location. I'm happy with that. Nice, very good right. So turning to well keeping that lifestyle theme, Annabelle and Max, you guys both live in the Alps year round. Be interested to get your. Think really on what day-to-day life is like being there as as permanent residents. And you know what? What, for example, is your favorite time of year? Have you taken up new hobbies since you moved there? Just give us a flavour of of what it's like to actually live there. Max, can we come to you first? Yes, certainly. So I've been over here for just under 10 years and I moved out initially for the love of skiing and and as shamani, the Mecca of of of skiing, it was seen, seen the, the logical decision and what I didn't realise is that come the end of this key season, my first winter here and as the sort of the springtime hits and the snow melts and the mountain bikes come out that's when the playground. Really opens up. And for me it was that, that, that that was what kept me here. And the the biking, hiking, climbing, driving down to Annecy Lake. Spending spending weekends down there down in Provence which is only four hours away or through the Mont Blanc tunnel to the Italian lakes again just over an hour away and it's that's the kind of the diversity of of the summer is just is just incredible and and because for example we have the lift here the the eguide MIDI which is a lift that takes us here from 1000 meters up to. 3980 meters and that's the lift that runs year round. So you there's just, there's always, there's always something to do and and and that's, that's definitely what's kept me here and then in surrounding resorts there are, there are. Music concerts, food festivals, and in the Port du Soleil, for example, every summer they host the Harley-Davidson Festival, which is just a whole load of fun. Lot of. Big bikes and and and free free concerts. I think this year we're status quo we're playing and so that sort of thing is just it's just it's just awesome and and that's a that's that's that's what that's what keeps me here for sure. Brilliant. You sold it. Sounds idyllic. Annabelle what about over in Verbier? Yeah, sure. Well, I came here about 20 years ago now. Nearly. Gosh. And I've always been a fan of the outdoors. So when you come to the apps, it's like an adult playground. There's a huge abundance of sports to do on in the mountains and in the water. Sports on the lake. I think Max is absolutely right. Someone said to me once when I moved here, it's the winters that will bring you here and it's the summers that will keep you here. And I think that's that's really true. I used to. I used to live. Down by the lake and I remember going weight boarding before I went to work, which was heaven, but life has changed quite a lot since then as since I've have children so. My recent purchase was an E bike, and that's been a game changer for me. It's it's such an incredible way to get around the mountains to cover huge distance. It's described quite a lot as you sort of the summer skiing because you can do it at all sorts of different levels. You know, you just put this the the effort at different different levels so everyone can do it together. It gets me to the lift in the winter with my skis on the back, on my back. I take the kids to school and the trailer. And and even done the old property viewing I think going on on my bike. So and just from a personal point of view since having children it really is such an amazing place for kids. It's you know it's free entertainment on your doorstep you can it's incredibly safe certainly here in Switzerland. So you know you often see you know young children running around you don't have to worry about them. It's definitely small village but it's such a great sense of community here so. So yeah. Won't be leaving anytime soon. I'm liking the idea of the bike. Sounds great. Thank you. Thanks so much. OK. So I think that's probably all the questions that we've got time for. So we'll draw the panel discussion to a close and thank you all for your invaluable opinions and your input. I'm going to pass over to Roddy now, who's going to wrap up today's session. Thank you, Kate. We touched on where the market is heading this year. The impact of Brexit on the apps, the impact of climate change, the quirks of buying in Switzerland, the teams personal insight on what makes the apps a special place to own a home. For any questions we haven't answered today, one of the team will follow up with you after the webinar. So that concludes our ski property webinar. A huge thank you for joining us today. We hope you found it informative and have been able to take away some key insights. If you'd like to find out more, be sure to download and read our latest ski property report. If you haven't done so already, you can view and download the 2023 ski property report by clicking on the report on the dashboard. And if we can help with your Alpine property needs, whether you're looking to buy or sell your property or simply want to talk through any of the points we've discussed today in further detail, all of our speakers details can be found on the left hand side of the screen. Please do reach out to them to discuss your specific needs. We'd love to hear from you. We're going to leave you now with the selection of amazing homes that we currently have for sale in the franchise first apps. Thank you. _1732456115666