Strong demand for upmarket homes in Switzerland, partly driven by the limited supply, has pushed up prices in the past year, according to Savills, with chalets prices in the traditional Alpine ski resorts rising by as much as +20% in the past year alone.

Buyers are showing particular favor for the cantons of Vaud and Valais in the southwest, predominantly French-speaking part of the country, made popular by its well-known ski resorts, including Villars in Vaud and the Verbier and Four Valleys resorts in Valais.

In addition to restricting the number of homes available to foreign buyers, the market is tightly regulated, forbidding a foreign buyer to resell a home for five to 10 years, depending on the region and development. As such, it is not possible for investors to “flip” properties for quick profits, which brings great stability to the market.

Recent sales suggest that the market has yet to be affected by the global recession.

According to the Swiss firm Wüest & Partner, which tracks national house prices in conjunction with the country’s Federal Statistics Office (FSO), average house prices in Switzerland rose by almost +4% from 2007 to 2008, against a backdrop of falling prices elsewhere in Europe.