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It’s still only midseason, and the sun is shining in the tiny Swiss ski resort of Andermatt, but few tourists are making the most of the perfect conditions. The ski-lift car park is half empty, as are many of the hotels. A few hardcore skiers wind their way down the difficult slopes of the Gemsstock, the high peak that overshadows the town, while, at the end of Gotthardstrasse, cross-country skiers take advantage of the deep snow that still covers the golf course.
There is little sign of the huge changes that are about to hit this tiny town — because also hidden until the thaw is the early construction of a large concrete platform that will form the base for a huge resort development unprecedented in Switzerland.
Andermatt Swiss Alps, built by Orascom, an Egyptian developer, will be a purpose-built mixed-use complex with more than 500 residences, hotels, shops and leisure facilities. Though adjacent to the original village, it will have the structure and facilities to become a standalone town, transforming this part of the Alps beyond recognition.
Properties have been drip-fed to the market over the past two years, but interest may be about to surge. Last Sunday, the Swiss voted in a referendum to restrict the construction of holiday homes. From January 1 next year, building such properties will be prohibited in places where they already account for 20% of the housing stock.
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From next January, Swiss law will ban the building of holiday homes in some of the most popular resorts. This project has special status The law won’t apply retrospectively, so any existing development can continue.
In some areas, however, the number of holiday properties available or sold to both Swiss and foreign buyers already exceeds the limit, so no more will be allowed. These are likely to include all the most popular resorts in the cantons of Vaud and Valais.
The referendum was pushed for by several environmental organisations, including the Swiss Green party, which wants to curtail what it sees as an endless programme of building in environmentally sensitive landscapes.
The likely impact on both buyers and vendors is still being digested, but it’s clear that not everyone is happy.
“This is not an issue of keeping foreigners out,” says Simon Malster, director of Investors in Property, a British-based company that specialises in Swiss homes. “It affects local buyers, too, and the government was against it, as there is a firm belief that planning laws should be managed by local authorities. Many resorts had already put restrictions on further development, so it’s unnecessary.
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“The short-term implication is that prices will increase. In the long term, developers, many of whom are local, will suffer, along with anyone who works in the construction industry.”
Since it partially relaxed its laws on foreign ownership in 2005, Switzerland has become increasingly popular with high-end British buyers. Resorts such as Verbier and Saas-Fee have grown and become more glamorous without losing their charm. Now the rules are being tightened again.
The timing couldn’t be better for developers with a lot of new-build properties to sell — including Samih Sawiris, 55, the billionaire owner of Orascom. He is the driving force behind plans to double the size and scale of Andermatt, in Uri canton, turning it into a rival to the established favourites. Thanks to the conservative-minded Swiss voters, he is among the lucky few who will be able to offer new homes for some time to come.
In 2005, he was given permission by the Swiss government to create the £1.23 billion mixed-use resort on a site that was once an army barracks and farmland. Plans for the resort include six four- and five-star hotels, 490 flats, 25 luxury chalets, an upgraded golf course, a spa, a sports centre and shops.
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Sawiris was brought in as a consultant by Swiss investors, impressed by what he had done in his native Egypt. They asked him to help regenerate the town once the army moved out, and he immediately saw the town’s potential. “Andermatt is at the crossroads of several main roads, including the Gotthard Pass,” he says. “It’s two hours from Milan and Zurich, yet has remained undeveloped. I’d never seen a site like it.”
Ten years ago, Andermatt was a tiny, forgotten village with ageing infrastructure and a diminishing population. The Swiss army, the town’s golden goose since the second world war, has been reducing its presence over the past two decades, and with it any need to employ local staff. Little was done to develop its touristic potential, however, and as the jobs disappeared, so did young residents, in search of work elsewhere.
Known for its challenging skiing and snowboarding, Andermatt has only about 60km of pistes, though they go up to just under 3,000 metres. The lifts and ski network haven’t been upgraded in years, and with a population of only 1,400 to cater for, the hotels and restaurants are dated. It’s all in sharp contrast to other resorts, where boutique hotels, chic chalet complexes and designer shops have sprung up and ski areas have been significantly expanded.
Orascom benefits from a special status, granted by the Swiss government, that means it is not bound by the Lex Koller law. This stipulates that non-resident foreigners must obtain a permit before buying a property, can own only one at a time — with a maximum 200 sq metres of living space — and may do so only in designated developments or locations.
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The more expensive flats in the development are larger than this, as are the 25 chalets, which are at least double that size; these start at £5.5m. For those who want something more modest, six blocks offer flats from 36 sq metres (from £344,000) to 265 sq metres (£2.67m). They will be built on the platform, known as the podium, just outside town, under which utilities and parking will be hidden.
Hotels already signed up include a Radisson Blu, which will have a conference venue and buy-to-let units available for sale. The Swiss hotel firm Steigenberger has also expressed interest. “There are already several two- and three-star hotels in Andermatt — we don’t want to compete with those,” says Sara Collins, the development’s head of sales. “We are targeting four- and five-star brands.”
The resort will have a shopping mall, with a mix of international and local retailers, and an 18-hole golf course with an additional six-hole training course and a clubhouse. It will be linked to the town, about 10-15 minutes away, by walkways and a plaza surrounding the new public-access sports centre and spa facilities.
The design has an Alpine feel, with chalet-style exteriors in wood and stone. “We have several architectural firms creating different aspects of the project, but the overall aim is to fit in as much as possible with the local style,” Collins says.
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For those with more money to spend, Orascom is developing the Chedi Andermatt hotel in the centre of town. Built on the site of a hotel that went out of business, it will offer all the trappings you’d expect in a first-class boutique residence, with a cigar lounge, restaurants and stylish public areas.
Within the hotel, 119 units are for sale. These range from one- and two-bedroom fully furnished flats, which start at £1.18m, to vast loft-style properties and penthouses, priced from £2.4m to £10m. These are being sold as shells and will be fitted out for purchasers at extra cost.
Sawaris’s aim is to create a resort with a strong multinational mix and a range of permanent residents and second-homers. He wants a “full residential community, not just somewhere for tourism. It should be always alive and welcoming”.
In addition to the new develop-ment, the local rail service and station facilities are to be upgraded. There are also plans for a huge extension of the ski area to 130 kilometres, with new lifts linking Andermatt with the neighbouring resort of Sedrun.
Despite the grandiose nature of the scheme, sales so far appear to have been sluggish. The developers admit that only one in five of the properties released so far has actually sold; several agents have reined back on promoting the resort or dropped it from their websites.
One problem may be price: Simon Malster, of Investors in Property, says several clients decided against buying because it was too pricey, compared with established resorts such as Verbier. He is expecting interest to pick up again following Sunday’s vote.
“I’m already getting emails from prospective buyers asking what they should be looking at if they want to beat the change in the law,” he says. “Andermatt was conceived as a long-term project, so they will be building and selling there for some time to come.”
Alternatively, those hoping to benefit from the buzz surrounding the new development could buy in the centre of Andermatt, where existing properties go for £4,000 a sq metre, less than half the minimum £9,550 in the Orascom development. Re/Max Switzerland has a 48 sq metre flat for £197,000 and a 75 sq metre property for £334,000, both in the town centre (00 41 41 429 8181, remax.ch). And Naturblick, a new residential site 10 minutes outside town, has 111 sq metre flats for £330,000 (00 41 41 817 4747, homegate.ch).
Wherever you buy, Malster expects the new curbs to boost prices: “If you already own or buy before next January, then your property will have appreciated in value immediately, as there will be no new second homes built in future.”
Andermatt Swiss Alps (00 41 41 888 7800, www.andermatt-swissalps.ch)
Reach higher
Three more ski properties to give you a foothold in the Swiss Alps
Engelberg from £169,550
The Titlis Resort is a development of one- to three-bedroom flats in Engelberg, near Zurich. The complex, which has a spa, is 200 metres from the ski lift in one of the region’s largest snow-sure areas. Prices range from £169,550 for a 42 sq metre studio to £760,000 for a three-bedroom, 137 sq metre flat.
020 8905 5511, investorsinproperty.com
Villars £354,000
This one-bedroom, 60 sq metre flat is on the second floor of a traditional-style chalet in the centre of the resort, which is near Lausanne. The property needs updating, but is handy for the ski lift, shuttle bus and shops. The living room has french windows leading to a south-facing balcony with picturesque valley views.
020 7629 8171, knightfrank.com
Verbier £7.6m
In the heart of this chic resort, the imposing Chalet Kernow has five bedrooms, a billiards room, a wine cellar and a self-contained guest flat. There’s also a spa with a hot tub on the terrace, ideal for soaking up the mountain views.
020 7016 3740, alpinehomesintl.com