From owners looking to offset costs to a growing US clientele and rising summer demand, the mountain rental market is evolving fast – and clients want more than just a chalet with a view.
Selective peak-season rentals can boost income while preserving quieter weeks for personal use.
“At the super-prime end of the market, people aren’t looking to make a yield,” says Duncan Robertson, owner of Knight Frank’s strategic partner in luxury holiday rentals, Koja D’Or. Owners, he says, are looking to generate enough rental income to cover costs, while limiting wear and tear and retaining flexibility.
This is also influencing how properties are managed. In Switzerland’s top resorts, owners typically make their homes available for three to 10 weeks a season, often choosing to use the quieter weeks themselves and rent during peak periods, when rates can be two or three times higher.
Interest in longer rentals is growing too, including families spending an entire winter in the Alps while children attend international schools in resorts such as Verbier, Crans-Montana or Villars-sur-Ollon.
Around 20% of Koja D’Or’s super-prime clientele is now American, up from around 8% five years ago. “A lift pass in Vail can cost around $300 a day,” Robertson says, “compared with around $430 for a week’s skiing in Verbier. Add to this the strong dollar, the appeal of Alpine resorts and good flight connections – all factors pushing affluent North American skiers towards Europe.”
The French Alps tell a different seasonal story.
Knight Frank’s partner in the region, Cimalpes, manages 1,300 properties here through its network of offices. According to Benjamin Berger, Cimalpes’ Deputy CEO, around 95% of buyers now choose to rent their property, while at least half have previously booked a rental through Cimalpes.
Chamonix is the exception. Around 60% of Cimalpes’ Chamonix occupancy occurs in summer, with Berger attributing this to its lower altitude, more comfortable summer climate and extensive events calendar.
It’s slightly different in St Moritz. Franco Giovanoli, Head of St Moritz Sales at Ginesta Collection | Knight Frank, is seeing demand strengthen, in part as soaring Mediterranean temperatures make the cooler mountains more attractive. “Here, temperatures in August typically sit in the 20s, rather than 30-plus,” he says.
The way people rent is changing too. In St Moritz, hotel residences allow owners to combine personal use with professionally managed rental. For owners who only use their property for a few weeks a year, it offers a hands-off way to generate income from the rest.
As interest in renting has grown, so have expectations. “Hospitality has become hyper-personalised,” says Robertson.
Koja D’Or’s tagline, “Happiness is yours to define,” sums up the approach. Services are tailored to the client, from discreet “ghost service” to full butler attention. Seclusion is another theme. In Queenstown, large estates are increasingly favoured. “The big theme in the luxury market in New Zealand is privacy,” says Chris Farhi of Bayleys.
The rental product is changing too. At Cimalpes, private spas, ski rooms and home cinemas are increasingly baseline expectations, with indoor pools, hammams and cold plunges now entering the brief.
Winter still dominates, but the rental market around it is changing: summer is growing, renters are coming from further afield, and expectations around privacy, level of service and the amenities within the property itself are rising.
Liam Bailey is Global Head of Knight Frank’s Research Department, leading the firm’s global research strategy and overseeing projects across the UK and international markets.
Our Alpine team provides access to the best properties in the Alps and ski regions across the globe. Fill in your details and we'll be in touch to discuss your needs.
Gain insider resort tips from our experts, explore our alpine fact file, and access our comprehensive mountain events calendar.
Sorry!
An unexpected error has occurred.
Please try again later.
