St Barts, the Alps and the new shape of second-home living

The 2023 sale of a $136 million estate on the Caribbean island of St Barts cemented its status as one of the world’s premier second-home destinations for the ultra-wealthy.
The property near Colombier Beach was built and owned by David Rockefeller, and its history mirrors the island's transformation: he was arguably the first in a long line of globally recognised names to acquire property here, helping shape St Barts into a retreat for film stars, sports icons, and even royalty.

It’s an exclusive – and elusive – destination. Access is famously difficult, but that’s part of the appeal. And the island has come a long way since Rockefeller began building what would become a 130-acre estate. Iconic hotels, restaurants and beach clubs like Eden Rock, Nikki Beach and Cheval Blanc have given the island its reputation for hedonism, but it’s the privacy, security and low-key luxury that keep high-net-worth individuals coming back.

We took a deep dive into the island's property market and prospects with the help of Knight Frank's international property expert James Davies and our partners on the ground. The report, released this week, will be part of a series of Caribbean market spotlights that we'll be publishing over the coming weeks. 

Homes in St Barts don't come cheap – average villa sales range from €9 million to €14 million, depending on factors such as location, sea views, and land size – but for those who choose to rent, the economics can stack up nicely. Seasonal gross income can reach €1.2 million for high-specification homes. But of course, that's not why most people buy – see the report for more.

Year-round living

The pandemic reshaped the way we use real estate, though the changes were less radical than they first appeared. Demand for city living came surging back, with renewed interest across homes, offices, retail and hotels in vibrant urban centres.

But having recently completed The Residence Report, alongside our work in the Caribbean and our brand-new Alpine Property Report, it's clear that for the wealthy, the dream of living and working year-round from beautiful, often secluded locations is alive and well. 

Kate Everett-Allen and the team surveyed more than 570 high-net-worth individuals – those worth at least US$1 million – to gauge their views on everything from where they want to buy in the Alps, why, and how much they intend to spend. A remarkable three-quarters of respondents said they would consider making the Alps a permanent base.

This chimes with both data and anecdotal evidence across our reports on second-home locations, which explains the wave of new development we’re seeing in hotspots from Comporta to Fiji. Year-round homes need to be better equipped, more sustainable and designed with flexibility in mind – places where residents can live, work and entertain in comfort, whatever the season.

Influencing values

The coming years will be pivotal for the Alpine market. The Winter Olympics, evolving regulations and rising summer demand are set to reshape pricing and investment dynamics. Indeed, regulation is already influencing values – Andermatt leads our price rankings with 14.6% growth in the year through June 2025. The resort sits outside restrictions that limit the construction of second homes, and the acquisition of such properties by overseas buyers, which is attracting a lot of international interest, particularly from US buyers.

French resorts registered steadier gains: Méribel matched St Moritz at 7.1%, and Alpe d’Huez reached 5.7%. Overall, the Alpine Property Index rose 3.3% in the past year, with Swiss markets outperforming at 5% annual growth on average versus France’s 1.2%. The index now stands 23% higher than five years ago, underscoring a renewed era for Alpine living.

Prime price bands reinforce the established hierarchy. Gstaad remains the costliest Alpine destination, followed by St Moritz and France’s Courchevel 1850. Verbier and Zermatt complete the top tier of Swiss markets. Investor value varies sharply across resorts. Our “Where does €1 million go furthest in prime resorts?” analysis highlights some striking contrasts: in Morzine, €1 million buys 102 sq m of prime property, more than four times the 22 sq m it will fetch in Gstaad. Mid-tier markets such as Chamonix (70 sq m), Méribel (55 sq m) and Davos (44 sq m) combine prestige with relative space.

See the report for more.

A sluggish autumn

UK inflation held steady in September, undershooting economists' expectations. That prompted "a rush of bets" on Bank of England rate cuts by year-end, Bloomberg reports:

"Although traders still see a rate cut next month as unlikely, they added to bets of one before Christmas, putting the odds at around 70%. Before the data, the chance of a reduction by December was just over one-in-three."

Borrowers may get some relief via lower mortgage rates in the weeks ahead if the data continues to improve. It's been a pretty sluggish autumn in the property market so far – asking prices barely moved during what is typically a busy autumn sales period, according to Rightmove – adding to signs of buyer caution ahead of the budget in November.

In other news...

France’s wealthy shift funds to Luxembourg and Switzerland (FT), Burj Khalifa builder Mohamed Alabbar’s second act: beyond Dubai (FT), Debt Fund Defaults in UK Real Estate Soar Past 20%, Survey Shows (Bloomberg), David Rubenstein Joins Family Offices Betting on US Real Estate (Bloomberg), Crown Estate Unveils $6 Billion Oxford Science Project (Bloomberg), and finally, Tax raid on solicitors and GPs as Rachel Reeves targets wealthy (Times).