The property markets in both countries have benefited from an influx of tourists and from stable economic conditions in the face of the global credit crunch, with Swiss property prices, in particular, expected to grow at a steady rate.

"The Swiss residential property market is in the middle of a soft landing," says Martin Neff, Head of Swiss Economy Research at Credit Suisse. "There is no prospect of Switzerland suffering the kind of upheaveal experienced by property markets in other countries. This is the conclusion reached by Credit Suisse's economists in their latest Real Estate Study."

According to Neff, the Swiss property market has been kept buoyant by demand from EU migrants. "Switzerland is in the middle of a wave of immigration, particularly from EU and EFTA countries, which is adding a considerable amount of extra demand for housing," he says.

But some migrants – like Brit Amanda Sutter – find that property investment in Switzerland comes at a price. "Buying a house here is very expensive, and not like in the UK as you have to put down a big deposit – I think it's 20 per cent of the value of the house," she says.

According to a recent study by the global Property Guide, Switzerland also imposes the world's highest taxes on rental income of non-resident landlords – an uncomfortable prospect for those looking to buy to let. On the other hand, rental income in some areas of the country, particularly in the ski resorts, can be high enough to balance out the taxes. 

One area where rental returns are excellent year-round is Champery. Situated within one of the largest ski resorts in the world, Portes du Soleil, it is a 'picture postcard' village famous for its quaint charm. David Stanley Redfern is currently marketing a selection of chalets in the village – built across three floors and covering 210 square metres, the apartments are predicted to achieve rental yields of up to 6 per cent.

For a cheaper option on Alpine property, investors should look towards Austria. "The Austrian Alps is a perfect location for an investment property," says Jessica Delaney of Investors in Property. "Not only can you enjoy skiing, sleigh rides and mulled wine in the winter, you can also enjoy swimming in the lakes, horse riding, cycling and hiking in the summer. The Alps offers the chalet owner two very different types of holiday depending on the time of year they visit, and also gives the investor two high season for rental in just one year."

Investors in Property are currently offering a selection of apartments located in the Alpine village of Bad Hofgastein, approximately one hour from Saltzburg Airport. Prices start from 260,000 euros for a two-bedroom property, including all furniture and underground parking. Luxury chalets are also on offer from £335,000.

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For more information visit:
www.investorsinproperty.com
www.davidstanleyredfern.com
www.credit-suisse.com

Article first published 30 June 2008