Fall is in full swing with winter quickly approaching. While many flock to the beautiful beaches of South Florida to escape the cold and snow, there’s another popular destination that appeals to the masses this time of year. With temperatures dropping and precipitation increasing in the mountainous regions of the Northern Hemisphere, recreation enthusiasts and adrenaline junkies are hitting the slopes, and the luxury real estate market is directly benefiting.
According to a recent Realty Today article, demand for luxury properties in areas with popular ski attractions is on the rise, with some of the highest price increases in any real estate market. Knight Frank, one of the world’s leading independent global property consultants, recently released their latest ski property report, after monitoring property prices in ski resort areas in 20 countries. They found that prices overall went up 5.9% globally, with North American increases over 13% for the period ending June 2014. Topping the American charts was the city of Aspen, Colorado, experiencing a year-on-year average rate hike of 20.7%. This rate was second only to Queenstown in New Zealand, with a 24.8% increase. “The rise of the ‘super-chalet’ as a rental option is a recent phenomenon,” said CNBC of the Knight Frank report. “Some are 800 square meters or larger and located in unrivaled positions in the top resorts such as Courchevel (in France).”But the European and Russian markets aren’t experiencing the same boost as others, with prices increasing one and four percent, respectively.
The astonishing rate increases are somewhat attributed to owners placing their properties in the rental pool and thus benefiting from the 20% (VAT) rebate on the sold price. Industry experts agree that prices should continue to rise as the winter season kicks off. Demand for property with good access to ski resorts is expected to increase, causing the average prices to head upward along with it. Whether you’re looking to purchase a luxury home in Colorado or Italy, New Zealand or Argentina, investing in a property in, or around, a popular ski resort appears to be a fairly safe bet. And a pretty fun one too.