Alpine properties with rental potential

If the current ski season has you thinking about making a more permanent investment in the Alps, picking a property with rental potential can bring both lifestyle and financial benefits. For those looking to add some additional income (handy for offsetting expenses) Knight Frank’s Alpine Property Report 2025 crunches the numbers in detail on the potential yields you can expect. Here it gives two real-life case studies - a €895,000 2-bedroom apartment and a €2,575,000 4-bedroom chalet, giving a return on investment of 2.8% and 1.9% respectively. The longer-term view is crucial, however, with Knight Frank’s Alpine Property Price Index showing that the average chalet has appreciated by 33% since 2008 and by 19% since the pandemic began.

When thinking about what, and where, to purchase, Roddy Aris, a Partner within the International Residential Department, recommends putting yourself in holidaymakers’ shoes. “Everybody wants to be close to the piste, and to the centre. You want to be able to get to the restaurants, bars, shops, and cafes, and then gently walk back home without having to take public transport or going in your own car.” And when it comes to location, choice of resort is all important.

“If you’re thinking about the longer term, then it’s all about altitude. Focus on tried-and-tested and in-demand destinations.” If maximising rental returns is a priority, bigger isn’t necessarily better. “Your yields are going to be much higher on a smaller unit,” he says. “They’re very much in demand, and you know you’re going to get a solid ski season - and depending on the ski resort, a summer season too.” With changing rules for Airbnbs across Europe and beyond, operating through tour operators is recommended, and understanding all the rules and regulations governing the rental of your ski home is critical.

Ultimately the key is deciding your motivation behind the purchase. Is it the yield, or to also have a holiday home for your family and friends? As Aris describes, “It’s a way and quality of life that you can't find anywhere else. You can't put a price on it.”