The Central Bank of Switzerland recently ended its 3-year plan to cap exchange rate gains of the Swiss Franc versus the Euro resulting in an almost instant switch of customer demand from Swiss property and Swiss ski resorts in favour of Austrian destinations, for both Austrian property buyers and holidaymakers.
In the run-up to 15 January 2015, the SNB had pegged the Swiss currency to adhere to patterns in Euro behaviour but after several falls in the Euro, the Bank lifted the enforced exchange rate and allowed investors to pile in sending the currency up by as much as 30%.
The move has created a sizeable impact on the Swiss ski industry and overseas ski property investors looking for their dream alpine ski property.
Many buyers have been put off by the dramatic rise in property prices and are finding much better deals in markets like Austria which has always offered better value for money than the French or Swiss Alp resorts (grounds costs are lower and rental yields higher).
Moreover, the traditional Austrian atmosphere is another factor cited even by French and Swiss visitors to Austria thanks to many of the original local families still running their hotels and Gasthofs offering a level of personal service and hospitality seldom found in other European resorts.
Snowy view in Galtür today – the Türtschers will manage the Silva Peak Residences on behalf of owners.
A few other reasons for UK customers to choose Austria over France:
- 73% of Austrians speak English versus 39% of French;
- Average restaurant price in Austria – 40€ versus 50€ in France;
- The average price of a beer in Austria – 4€ versus 8€ in France;
- 1 minute of mobile phone usage costs 0.07€ in Austria versus 0.24€ in France.
