Andermatt: a new rival to St Moritz?

In recent years, the Swiss town of Andermatt has received its fair share of column inches, almost all of them positioning it as the new St Moritz, Verbier or Gstaad. In the Savills Ski Prime Price League 2024/25, Andermatt came seventh in the list of top ski resorts, with an average asking price of €22,600 per square metre for prime residential properties. And it is one of the five Swiss ski towns that has enjoyed the fastest property price appreciation in the Alps over the past decade. 

Andermatt’s rise is remarkable when you consider that, until the turn of this century, it was a quiet Alpine garrison town where young Swiss soldiers came to do national service. “When I first visited 17 years ago, it was just this funny little town that had quite a serious reputation for backcountry skiing, but other than that had very little going for it,” says Sam Scott, head of Swiss Alps at Savills Ski.

Enter Egyptian billionaire Samih Sawiris, who spotted Andermatt’s potential while helicoptering over the town in 2005. Sawiris is the founder of Orascom Development Holding, a real estate company known for creating destinations in Egypt, Montenegro and the UK. Such was his belief in Andermatt that, by 2007, he had convinced 96% of the municipality to vote in favour of transforming it into an upmarket holiday destination.

By the end of 2023, Sawiris had invested CHF1.67 billion (€1.78 billion) into Andermatt via the conglomerate Andermatt Swiss Alps AG, establishing luxury hotels such as The Chedi, a world-class concert hall designed by Christina Seilern, a championship golf course and a modern architectural district with 42 new apartment buildings.

Sawiris also oversaw the expansion of the Andermatt-Sedrun-Disentis ski area – which he has since sold to Vail Resorts.

Key to the town’s success was a unique exemption from Switzerland’s stringent Lex Koller law, which prohibits foreigners from acquiring property in the country. Andermatt is the only large-scale location in Switzerland where non-Swiss individuals can buy and sell property with no restrictions – and no need to apply for a permit. This played a key role in attracting international buyers to Andermatt before building began in 2009, as it allowed them to circumvent long-standing Swiss rules. 

The focus now is on creating infrastructure that provides for a community all year round. “There are a number of additional ways in which astute stewardship of a resort can help to build a strong and cohesive community,” says Russell Collins, chief commercial officer at Andermatt Swiss Alps. “One starting point for us was having street life as a catalyst. In Andermatt Reuss [the newly developed part of town], our retail street is fully open, mixing boutiques, delicatessens, restaurants, bars and shops that cater to everyday needs. It’s a hub for the community.

“Then we organise regular events that bring people together – running clubs, ski groups and cycling expeditions for all levels. We make it easy and desirable for residents to join in.”

Collins points out that, unlike some Swiss resorts, Andermatt has no plans for shops that are “more about style than substance”. “I think it would be a disservice to our community,” he explains. “At this point, a pharmacy and a coffee shop are more useful than a jewellery store, for example.”

For Alpine homeowners, the summer season is becoming ever more important. At an altitude of 1,444 metres, the resort has a decent snow record, but provisions must be made for an economy that is not wholly reliant on winter sports.

Andermatt already has a year-round population (13% of units are primary residences), and most of its restaurants, bars, cafes and boutiques are open all year round. The town has spa and wellness centres, hiking trails, racket sports, a performing arts venue and two Michelin-starred restaurants on the mountain (with another at The Chedi). 

Andermatt can also claim to be the leading Swiss Alpine road cycling destination – the Swiss professional team Tudor Pro Cycling recently decided to use the town as its training base and official “home”.

Sam Scott sums up the town’s appeal nicely. “There’s the lovely, quaint old town or the slick and contemporary Andermatt Reuss,” he says. “We sell small units and four-bedroom penthouses. There’s a whole programme for winter and for summer, so Andermatt is changing what it means to be an Alpine town. There really is something for everyone here.”

SAM SCOTT, HEAD OF SWISS ALPS, SAVILLS SKI
sam.scott@savills.com