Engadine - A Solid Market Where Value Grows Over Time

PARLI | This Home is Yours
Nov 11
2 min read

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