Inside the Alps’ Toniest Towns

Few ski resorts are as well-known and prestigious as St. Moritz. Synonymous with the rich and famous, it has been visited by many well-known faces. In its heyday during the golden age of Hollywood, Alfred Hitchcock, Charlie Chaplin and Sophia Loren skied on its slopes. More recently, it has attracted the likes of George Clooney and Claudia Schiffer.

Located 1,800 feet above sea level in the Engadin valley, St. Moritz became an alpine resort in the mid-19th-century and claims to the birthplace of winter sports. It is home to the world’s oldest bob sleigh race track, the Olympic Bob Run St. Moritz-Celerina.

A combination of history, old school glamour, 300 days of sunshine a year and great snow records make St. Moritz one the most exclusive resort and ski areas in the Alps, with property prices typically ranging between €23,000 and €31,000 (US$27,241 and US$36,716) per square meter, according to Knight Frank.

Not only are prices prohibitively high, it is also very difficult to buy a home here if you are a non-Swiss resident. At present, the total number of homes that can be sold each year to non-residents in the whole of Switzerland is 1,440, according to Alex Koch de Gooreynd, partner at Knight Frank.

“Switzerland is largely closed to overseas purchasers due to the Lex Weber law, which restricts the percentage of second homes in any commune to 20%,” he said.

However, there is a new apartment scheme that is exempt from the restrictions and limitations that generally apply on the sale and purchase of Swiss real estate by non-Swiss nationals. Earlier this year the hotel group Grace Hotels launched a collection of 17 apartments, which will be serviced by the Grace St. Moritz Hotel, scheduled to open in 2019.

All of the homes will be put in the hotel’s rental scheme, but selling agent Knight Frank said it is too early to forecast return on investment at this stage. Prices start from CHF 740,000 (US$766,000) for a studio and CHF 9.9 million (US$10.2million) for a penthouse.

A high level of service, an unrivaled number of hotels with five stars or Palace ratings, and myriad glamorous shops make Courchevel 1850 a hit with the global super-rich.

It is not uncommon to see people arrive by helicopter or private jet. The resort has fur coat shops, and a beer often costs around €18 (US$21). Despite the prices, for some, it’s the only place they’ll consider, Mr. Aris said.

The highest and most expensive of the four Courchevel villages, is the Three Valleys, said to be the world’s largest (and arguably the best) ski area.

Overall, 1850 is among the world’s most expensive property markets, with buyers paying an average of €12 million to €16 million (US$14 million to $19 million) for a 600- to 800-square-meter chalet, or €20,000 to €25,000 (US$24,000 to US$30,000) per square meter for an apartment, according to Olivier Roche, CEO of Courchevel and Megève Sotheby’s International Realty.

Top-end mountain homes cost more than €20 million (US$24 million). It is possible to buy a chalet for between €8 million and €10 million (US$9.5 million and US$12 million), though it would probably require modernization and won’t be centrally located, Mr. Roche said.

So, who buys here? About 70% to 80% of buyers are not residents in France, Mr. Roche said. “The British are the top investors, the Russians come second, and Brazilians, Swiss and Spanish are prominent buyers,” he said. “There has been growing interest from buyers from Saudi Arabia and Gulf states.”

Around 10 years ago, Russian oligarchs were pouring money into mountain homes in 1850, Mr. Roche said.

“Five years on, the market became more difficult. Now it is seeing signs of recovery,” he said. “The number of people buying and renting properties in 1850 has increased over the past 12 months, compared to the same period last year, and the Russians have started buying large chalets again.”

Chalets are the most dominant type of property. Regulations that limit the size of new developments to a maximum of 1,000 square meters in the Courchevel area have led to a dearth of new apartment schemes.

Mr. Aris added: “It is continually investing in itself with the new Aquamotion water park between Moriond and Village, new ski lifts promised elsewhere and a continued desire to keep itself at the top of the game by replacing older, less attractive buildings with state of the art residences and hotels.”

According to the Knight Frank report, investment in both ski and non-ski infrastructure in Courchevel is causing an increase in interest in the market.

Zermatt, a ski and mountaineering resort, lies beneath the shark fin-like Matterhorn peak and is surrounded by the high mountains of Switzerland’s Pennines Alps. Along with picture-book mountain scenery and wild landscapes, it has world-class skiing and one of the longest winter seasons due to its altitude.

Located three hours from Geneva by the famous Glacier Express, it’s more remote and tranquil than other Swiss resorts, and is famously car-free; people either walk or cycle or use battery-driven golf carts. There are no wild party spots but it has gourmet restaurants and cozy bars.

Loved for its long ski runs, cross-country skiing, alpine scenery and hiking and biking trails, it attracts visitors year-round and has a strong following from the British, the local Swiss and Scandinavians. As a result, it has a strong rental market.

As a buyer you find there are few properties on the market as property rarely changes hands. Prices in Zermatt are at around the same level as Verbier but a local rule restricts buyers only to Swiss residents, according to Mr. Malster.

The only exception to the rule is for commercial properties. “Foreigners are permitted to buy a large, luxury fully staffed chalet if it is established as a business,” Mr. Malster said. “They could use it themselves but it must be rented out the rest of the time.”

He continued: “The 7 Heavens chalet development was set up on this basis, and despite prices starting at CHF 17 million (US$17.6 million), it sold out.”