Tag Archives: austria
Property market recovery in the Alps spreads out from top resorts
The recovery in the Alpine residential real estate market, led by the ultra-prime resorts, has spread to the rest of the region with infrastructure investment spurring new development, according to a new report. British buyers are returning as a weak euro poses buying opportunities in France, Austria and Italy but a strong Swiss franc has made property in Switzerland more expensive for foreign buyers, says the report from Savills World Research and Alpine Homes. Courchevel 1850 tops the Savills ultra-prime ski resorts index with typical prices of €31,340 per square meter for the best properties. The French resort is followed by the Swiss resorts of Gstaad, St Moritz, Zermatt and Verbier at between €26,450 and €31,220 per square meter. In spite of limited price growth, a strong Swiss franc has pushed these markets up the rankings in currency terms, the report explains. In North America, only Vail is on par with the top European competition at €25,200 per square meter. ‘A home in a top tier Alpine resort is a key component of global property portfolios for the world’s wealthy. A property in Courchevel 1850, Gstaad or St Moritz complements a city residence in London, Paris or Moscow,’ said Paul Tostevin, associate director of Savills World Research. According to Jeremy Rollason, managing director, Alpine Homes, 2015 has been a tale of two currencies for UK buyers in the Alps. ‘The de-peg of the Swiss franc caught markets off guard, but sterling has since recovered and now trades within a 5% range of the pre-January 2015 exchange rate,’ he said. ‘The weakening euro has helped buyers in euro denominated countries. Currency swings have the effect of either suppressing or stimulating markets through affordability, but the net effect has little influence on property values per se,’ he added. The report shows that buying activity in the Swiss resorts cooled in 2015 with foreign buyers, particularly important to the top end of the market, impacted by the strong Swiss franc. However, despite limited supply of second homes, investment in infrastructure continues and the cache of Swiss resorts remains. Grimentz gained a new lift in the 2014/2015 season linking to neighbouring Zinal and new apartment schemes have followed. La Tzoumaz is also set for revival thanks to a planned lift upgrade, improving connectivity with neighbouring Verbier. Villars, a year round resort with high quality international schools, has seen high levels of new supply in recent years and has suffered from poor snowfall. This has had some impact on pricing and, for those who shop around, there are deals to be done. Prime apartments here trade at between CHF10,000 and CHF12,000 per square meter. The Austrian Alpine resort market has remained strong on the back of a vibrant local economy, which has generated house price growth nationally of 41% since 2008 and the report says that Austria continues to offer excellent value for money compared to the more established French and Swiss resorts. Committed investment in resort… Continue reading
Sales up over 50% year on year in prime Alpine resorts
The prime ski property market in the Alps is continuing on its upward path with sales volumes up 52% year on year, according to the latest index from Savills. More alpine sales are taking place at lower price points as the resilience of the ultra-prime markets starts to ripple down the market ladder, according to the report. ‘A year ago we predicted prolonged periods of sunshine and blue skies for the Alpine property market. This may have been a somewhat easy prediction, given a recovering world economy, increased confidence and job security and in the case of UK buyers, a steady strengthening of sterling,’ said Jeremy Rollason, managing director, Alpine Homes. ‘The Alpine property market however continues its upwards trajectory in terms of increasing sales volumes, up 52% year on year, although this does not necessarily mean rising prices,’ he explained. ‘While buyers are more prolific for the above reasons, prices in the Alps have not generally kept pace with house price increases back in the UK, particularly in London,’ he added. The index report points out that Switzerland’s position outside the European Union cements is appeal as a safe haven for wealth and as such resorts carry a price premium. In the case of Verbier, values can reach €22,400 per square meter or 80% more than the average. It’s therefore no surprise that five Swiss resorts, Gstaad, St Moritz, Zermatt, Verbier and Crans Montana, appear in the Savills Top 10 Ultra-Prime Resorts Index. The family friendly resort of Saas Fee stands out as offering a long season with good quality snow but with comparatively lower priced property at averages of between €4,000 and €8,000 per square meter. ‘Verbier and The Four Valleys remains ever popular and is the destination of choice for many international buyers. Supply restrictions with the new Lex Weber law limiting the number of second homes to no more than 20% of the total will begin to bite in the next one to two years, once existing supply is absorbed. Upwards price pressure in the leading Swiss resorts is inevitable, although there are still deals in the resale market for those that shop around,’ he added. Austria’s comparative affordability, dual seasonality, diverse culture and attractive rental returns make it the country of choice for those chasing bang for their buck. Indeed, rental returns of ski property in Austria are roughly double those of either France or Switzerland, at circa 5% to 7% gross. Kitzbuhel is the only Austrian resort included in the Savills Top 10 Ultra Prime Resorts Index where prices range from €8,000 per square meter to €15,000 per square meter. For buyers seeking value, Bad Gastein and Zell am See offer lower priced property and average ski conditions, although the latter boasts a particularly strong summer season. The resort of Ischgl, the Ibiza of the Alps, is highlighted as one to watch. Prices here are under €4,000 per square meter. Stability is… Continue reading
European Energy Policy and the EU Road Map till 2050
Fabrizio Barbaso 03/11/2013 BRUSSELS – Today, energy security is more complex than ever before. Europe imports more than a half (54% in 2010) of its energy. It is very vulnerable to the global security situation. At the heart of European energy policy is the EU Energy 2020 strategy. This requires the EU to reduce its GHG emissions by 20% by 2020, compared to 1990; to increase the share of renewable energy sources in our energy use to 20% – almost double what it is now (currently 13% of its final energy consumption comes from renewables); and to increase energy efficiency by one fifth, over the same period. The 2020 agenda has been a broad success. Member States, local authorities and individuals have embraced it. Renewable energy has boomed, even at a period of economic slowdown, renewable energy investment is growing and the majority of new power plants in the EU are now renewables based. Energy Efficiency has taken a major step forward. More and more domestic items are subject to energy design and labelling requirements. The new Energy Efficiency Directive makes new obligations for local authorities, builders and energy suppliers to improve the use of energy both in homes and businesses. The European Strategic Energy Technology Plan has helped technology development. Offshore wind, fuel cells, second generation biomass, solar and PV, geothermal, smart grids, Carbon dioxide capture and storage – these are just some of technologies given priority in EU initiatives and funding. The challenge is to keep this up, despite the economic and financial crises. On renewables, we are working hard to push the network links to integrate new renewable resources into existing grids. We have also to prevent subsidy schemes from overcompensation at a high cost by society. On energy efficiency, which traditionally gets less attention, we will have to take care that new economic growth does not lead to a rise in energy use. On greenhouse gas emissions, there are additional difficulties as low coal prices and low carbon prices are making the task of reducing emissions more challenging. But the target of 2020 will be reached. The EU has already achieved GHG reduction by more than 18% below 1990 levels. Even so, the low-carbon, or “green”, economy will not be complete by 2020. Nor even by 2030. It will take us at least another three decades. That is the lesson of our 2050 Energy Roadmap. This Roadmap, which is based on a number of different scenarios, tells us that a low-carbon energy economy is possible. It is necessary. It is affordable, but it will take time and effort. And we need to get the rest of the world onto the same path. After all, Europe now accounts for only around one eighth of global emissions, and our share is diminishing. Low carbon investors are now waiting for the EU to agree the political direction for post-2020, leading up to 2030. Looking ahead, what are the trends in European energy policy? First, as I have already mentioned, market integration and reform are gaining in urgency, as we seek to complete the internal energy market for energy. Second, there is more and more EU collaboration in energy infrastructure. The European Recovery Programme for Energy was able to rescue a number of projects which were threatened by the economic crisis. The Hungary Croatia gas interconnector was just one which is now completed, thanks to EU support. The Austria – Hungary power interconnector will also help this region. The Commission’s new list of Projects of Common Interest will help us focus our efforts on specific projects which will help security of supply, sustainability and the integration of all parts of the European market. New money will be available under the Connecting Europe Facility. The Commission has adopted just a few days ago a list of priority projects for the EU and the Ministerial Council tomorrow will do the same for the Energy Community. Third, our external energy policy is becoming stronger and more cohesive. We have seen the EU taking a lead in negotiating with Turkmenistan and Azerbaijan over access to gas reserves. And this summer we had an important step forward on our proposal for a Southern Corridor to link that region with Southern Europe with the agreement on the Trans Adriatic Pipeline (TAP), which should also play an important role as a key part of South-East Europe’s “Gas Ring”. Continue reading
