The Swiss Alps, a new Eldorado for real estate developers

Andermatt has become a symbol of transformation. Keystone / Urs Flueeler

The Swiss Alps are attracting a growing number of Swiss as well as international investors, prepared to pump hundreds of millions of francs into the development of vast tourist complexes. These pharaonic projects are reshaping the landscapes of peaceful regions, sparking both fascination and controversy.

In the heart of the Goms valley in Valais, a real estate developer has high ambitions. “The buildings will be over here. There, a canal, and over there, an artificial lake,” Jean-Claude Bregy from the project “Resort Obergoms” told Swiss public television, RTS.

The project involves the construction of a holiday complex featuring 130 rental flats, restaurants and a wellness centre. The investment is estimated at CHF100 million ($110 million). “Such investments are only viable if you invest a lot. If you don’t have the supply and the warm beds, you can’t finance such a project. Hence its size,” Bregy said.

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But in a region accustomed to gentle tourism, the project has not always been met with unanimous approval. “It’s a bit like Andermatt, I don’t like it at all. The new village of Andermatt is rather strange, and it’s not at all Swiss,” a passer-by commented.

Andermatt, a symbol of transformation

Located on the other side of the Goms valley, Andermatt has become a symbol of transformation. Over the past 20 years, Egyptian billionaire Samih Sawiris has invested more than CHF1.5 billion in the area, transforming the village into a luxury destination. The Andermatt resort includes 650 top-of-the-range flats, five-star hotels as well as high-end boutiques. And it’s not finished yet.

“Oh, there’s still a lot to come. A hotel, a small street, a connection with the village,’ says Sawiris, who is also chairman of the board of directors of Andermatt Swiss Alps.

The revival of San Bernardino

Meanwhile, further east, in canton Graubünden, San Bernardino is experiencing a revival thanks to a major project. Under the impetus of Ticino developer Stefano Artioli, a large-scale holiday complex is currently under construction.

Two years ago the ski slopes re-opened after being closed for a decade, and old buildings were converted into hotels and flats. “We initially calculated the project at CHF300 million, but we’ll be closer to half a billion,” says Artioli, chairman of the board of directors of San Bernardino Swiss Alps.

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The developer has big plans for San Bernardino, which he hopes to transform into the “little Zermatt” of southern Switzerland. “Switzerland is a safe country, with a stable property system. Many things work very well here. And as far as our tourism is concerned, the people who come to stay in Switzerland already have a quality profile,” he says.

Impact on local communities

While these holiday resorts boost the local economy and reveal the potential of the Alpine regions, they also have an impact on the residents.

The arrival of these massive investments is pushing up property prices, sometimes making it difficult for residents to afford their own homes. In Graubünden, Valais and central Switzerland, the average annual growth rates in property prices have been 4.3%, 2.7% and 5.9% respectively over the past ten years, according to figures from property consultant Wüest Partner.

This trend is even more apparent in specific municipalities such as Mesocco, where San Bernardino is located, with the price per square metre for a second-home flat having risen from CHF6,960 in 2020 to CHF9,080 in 2024, or Andermatt, where it has risen from CHF8,130 in 2014 to CHF22,050 in 2024.

Adapted from French by Claire Micallef/ts