Engadine - A Solid Market Where Value Grows Over Time

The restrictions imposed by the Lex Weber Law, in effect since 2016, have halted the construction of new holiday homes - making the market more stable and valuable. Today, St. Moritz and the Upper Engadine remain among the most secure and desirable areas for investment in Switzerland.

The Context

The Upper Engadine real estate market is experiencing a phase of steady stability and growth.At the heart of this balance lies the Law on Secondary Residences (Lex Weber), which for years has significantly limited the construction of new holiday properties.

What It Means for Investors

Anyone buying property in the Engadine today must be aware that, with few exceptions, new buildings for use as holiday homes can no longer be developed.New constructions must be primary residences or part of regulated tourism-related projects - such as serviced apartments, hotel structures, or specific redevelopment projects.

Main exceptions include:

• Existing buildings with acquired secondary residence rights

• Renovations or refurbishments that do not increase usable floor space

• Areas governed by pre–Lex Weber zoning plans still partially in effect

A Protected and Growing Market

The result is a market defined by limited supply and sustained demand.This balance makes the Engadine one of the most solid and sought-after regions in Switzerland, with property values that remain stable or continue to rise, and strong interest from both Swiss and international buyers.

A Market That Appreciates Over Time

The numbers speak for themselves: in recent years, property values in the Engadine have increased by over 40% since 2020. Looking further back, prices have risen by more than 250% for houses and 160% for apartments over the past 25 years — growth driven not by trends, but by a well-regulated, high-quality market with scarce supply.

Case Study: Parli Project in Madulain

A tangible example is the project designed by Arch. Federico Parli and his team in Madulain, where the property benefits from secondary residence rights.

This exclusive three-floor residence of around 360 m² combines Engadine architecture with modern comfort: four bedrooms, five bathrooms, private spa, wine cellar, two balconies, garden, and three garage spaces.

It represents one of the rare opportunities still available in the Engadine for those wishing to own a true holiday home with flexible use - ideal as a private residence or as an income property for seasonal or long-term rentals.

Engadine Remains a Guarantee of Value

In a market where the construction of new second homes is nearly impossible, investing in existing properties with acquired rights remains the smartest and most sustainable strategy. St. Moritz and the Upper Engadine continue to offer a unique mix of exclusivity, long-term value, and capital security - making every investment a solid step into the future.

🔗 Learn more about this project and our properties in the Engadine at https://www.parli.swiss/madulain-project-362

Arch. Federico Parli

Engadine - A Solid Market Where Value Grows Over Time

Abolition of Imputed Rental Value in Switzerland: A New Era for the Engadin Market

A Turning Point for Owners and Buyers

On September 28, 2025, Swiss voters approved a historic tax reform: the abolition of imputed rental value. By 2027/28, this outdated system will be replaced by a transparent and simplified proportional property tax. For the Engadin - especially St. Moritz - this is not just a fiscal change, but a shift that redefines real estate investment value.

What is the imputed Rental Value?

Previously, homeowners were taxed as if they were earning rental income from their own home - a fictional income with real tax consequences. This disproportionately affected debt-free property owners, leading to criticism and calls for reform.

Example: A CHF 2 Million Home in St. Moritz

Currently, the owner pays about CHF 16,250 per year in imputed rental tax. Under the new flat tax system (0.3%), the owner will pay approximately CHF 6,000 – saving over CHF 10,000 annually.

Impact of the Reform: With and Without a Mortgage

Currently, mortgage holders benefit from tax deductions, while those who own their property outright pay more. Under the new reform, this discrepancy will disappear, everyone will be treated equally. Here’s the impact for a CHF 2 million property:

What This Means for the Market

• All owners taxed equally - no more advantage through mortgages

• Renovated homes increase in value (no more renovation deductions)

• Foreign buyers with capital will benefit the most

• Luxury demand will rise, especially in key destinations

• Municipalities like St. Moritz remain financially stable

Timeline of the Reform

1. 2025 – Nationwide vote passed

2. 2026 – Last year for renovation tax deductions

3. 2027/28 – New tax model goes into effect

FAQ – What You Should Know

• Can I still deduct renovations?

  Yes, but only until 2026/27

  
  

• What if I have a mortgage?

  Mortgage deductions will be eliminated, but total taxes will drop

  
  

• Is this a good time to buy?

  Yes - especially for capital-strong buyers

Conclusion – Why Now is the Time to Act

This reform levels the playing field and simplifies the process. The Engadin becomes even more attractive for second-home buyers and investors - with lower taxes and more transparency.

If you're a buyer with equity, now is the time to enter the market.If you're a homeowner, now is your last chance to benefit from renovation deductions and add value to your property.

The market rewards those who act early - turnkey properties will lead the trend.St. Moritz and similar destinations will continue offering the highest standards of living, infrastructure, and quality.

Whether buying or selling – Parli is your trusted partner in the Engadin.Contact us today for tailored advice.

Arch. Federico Parli

Abolition of Imputed Rental Value in Switzerland: A New Era for the Engadin Market

Renting & Renting Out in the Engadin: Your Summer 2025 Guide

With summer in full swing, the Engadin region presents fresh alpine opportunities—whether you're planning to rent out your property or find your perfect mountain retreat.

Market Snapshot: Engadin / St. Moritz

• Ultra-low availability: Only approximately 2 - 2.3 % of owner-occupied apartments are currently on the market in St. Moritz, confirming the market’s tightness

  
  

• High price per square meter:

  • Luxury apartments start around CHF 21,200 - 25,000/m², with prime locations reaching up to CHF 32,000 - 40,000/m², and exceptional listings even exceeding CHF 100,000/m².

  • The broader Alpine average is around CHF 22,300/m² - with Engadin / St. Moritz topping the rankings.

For Property Owners: Seize the Summer Surge

• Enhance seasonal appeal with outdoor spaces, light-filled rooms, and local amenities like lakes or hiking trails.

  
  

• Stay compliant: Short‑term rentals are regulated - Parli Swiss can guide you through the details.

  
  

• Stamp your property’s character in listings: highlight Engadin charm, views, and craftsmanship.

  
  

• Maximise returns: Combine short-term summer lets with year-round rental potential.

For Renters: Secure Your Summer Sanctuary

• Define your ideal stay: Chalet comfort or village proximity? Lakeside serenity or hiking access?

  
  

• Act early: Desirable summer rentals fill fast - start your search now.

  
  

• Live the season: Enjoy summer in Engadin - hiking, lake swimming, alpine charm.

Why Engadin Stands Out

This region offers more than beauty - it’s a lifestyle anchored in nature, culture, and enduring value. With supply remaining limited and demand strong, 2025 is shaping up to be a season of great possibilities.

Ready to explore?

Parli Swiss is here to guide you - whether you're renting, letting, or investing.

📩 Contact us for personalised support in the Engadin market.

Here’s to a vibrant summer filled with alpine opportunity!

Arch. Federico Parli

Quellen: UBS Alpine Property Focus 2025 | Ginesta Marktbericht St. Moritz 2024 | OAKS Immobilienkommentar 2025

Renting & Renting Out in the Engadin: Your Summer 2025 Guide