Andermatt is a small mountain village in the Swiss Alps. It's a few hours from Zurich, it's known for its skiing and snowboarding, and it's surely really beautiful. But right now it has two other important things going for it: one, it does not restrict property purchases by foreign nationals and, two, it does not limit the construction of second homes to 20% of the village's housing stock, which is a rule in other places. This is expected to come into force in Andermatt in 2040.
Because of these features, Andermatt is being viewed as a barometer for foreign demand and, over the last six weeks in particular, local developers and agencies are reporting "hockey stick growth" in terms of sales volume and inquiries (according to FT). As of April 10, new development projects in the village reported selling SFr14.2mn worth of apartments, which is nearly 2x the amount of transactions for all of 2024. And nearly a third of these deals were signed by "nervous Americans" following April 2.
Here's one buyer testimonial:
One Andermatt buyer, a New York-based tech entrepreneur in his early fifties who asked to remain anonymous, said Trump was one of the “main factors” in his decision to buy. He and his partner purchased a two-bedroom unit for SFr2.2mn in November. Switzerland, he said, was stable and secure at a time when the US was less so under Trump. “It is not only financial uncertainty — it is not liking what [the US] is turning into and what it has become,” he said.
It is not uncommon for people to say, "if X happens, then I'm going to leave and move to Y." That doesn't always, or even oftentimes, materialize. But wealthy people have the means to make it happen, if they want, and we're seeing signs of it all across Europe. In some cases, putting down a deposit on a new Swiss apartment might just be an option, should things get worse. And in other cases it may be a firm commitment to relocate.
But either way, it's a strong indicator and a demonstration of people voting with their feet.
We spent the last few days in Scuol, Switzerland. Scuol is a small mountain town with under 5,000 people (2018 figure) near the eastern border of the country. The town first achieved notoriety in the 1860s because of the various naturally-occurring mineral waters that can be found in the area. They were / are thought to have healing properties, and so a spa tourism destination was created. Skiing and snowboarding were later added to the town’s repertoire.
We tried the water from this fountain — the Lischana source:
The best way I can describe the taste is to say, imagine water that has had pennies soaking in it for the last 100 years. That’s what it tastes like, which is not good. But it is rich in magnesium and other things, which is why people (especially athletes) seek it out. It comes out clear from the source but if you let it sit in a bottle it will naturally become carbonated and turn brown. That’s why the embankment above has the color that it does.
I had a handful of respectable sips. Hopefully that’s enough to make me strong. A big thank you to Klaus, Peter, and Jaimie for the invite to Scuol!