Is the housing crisis reaching the mountains too? Especially in tourist resorts, where high demand for second homes is transforming the real estate market

Over the past twelve months, real estate demand has increased in several well-known and popular mountain municipalities. Greater pressure on the market has reduced the availability of housing, contributing to a consequent rise in home prices. Those looking for a mountain home also appear to favour villages, traditional dwellings, or stone buildings over the more common apartment — a dynamic that makes the market even more competitive.

For these reasons, the recent rise in housing prices in mountain areas has also affected lesser-known localities that have historically been more affordable; however, the most significant increases are being recorded above all in destinations that are accessible year-round, both in summer and winter, and those easily reachable from major urban centres.

How much can a home in a mountain tourist resort cost

The phenomenon is also confirmed by data compiled for Il Sole 24 Ore by Immobiliare.it Insights, the analytics arm of Immobiliare.it specialising in monitoring the residential property market in Italy. The analysis measures how demand for homes in the main mountain resorts has changed compared to a year ago. Among these, Madonna di Campiglio, in Trentino, is one of the most striking examples: over the course of a year, purchase enquiries rose by nearly 70 percentage points.

In the resort — one of the most sought-after and expensive in the Alps — the average price has reached 10,000 euros per square metre, an increase of 10 per cent compared to last year. These are figures comparable to those found in the most expensive European capitals, such as Paris, London, or Stockholm; within Italy, prices this high are found only in the most exclusive areas of Rome and Milan, such as Brera or the Quadrilatero della Moda, and in a handful of other luxury tourism destinations — including Cortina d'Ampezzo, Portofino, Capri, and Forte dei Marmi.

Why the mountains are being rediscovered

Increasingly frequent summer heatwaves have helped make the mountains more attractive not only as a tourist destination, but also as a place to invest in property — by purchasing a second home. In these contexts, properties are generally used both as holiday homes during the summer months, to be rented out when needed, and as places to stay for the rest of the year — thanks to the wider spread of remote working.

When you think about it, the mountains are increasingly becoming part of Italians' habits when it comes to choosing their summer holidays: in recent years, even those who traditionally spent their holidays by the sea have begun choosing high-altitude resorts to escape extreme heat and enjoy milder temperatures. The result is growing pressure on the most well-known destinations, with overcrowding particularly evident in the Dolomites. This is a dynamic that until a few years ago seemed to affect almost exclusively art cities and seaside resorts, but which today also involves a number of mountain locations — with direct repercussions, at least in the most in-demand destinations, on demand and on property market prices.

The fact remains that the mountain property market displays very different dynamics from one location to another. While some destinations are recording high demand for housing, many others continue to grapple with progressive depopulation: in numerous cases, mountain resorts have lost some of their appeal, partly due to global warming, which is making it increasingly difficult to practise winter sports at lower altitudes. In essence, the resorts that still offer favourable conditions in both winter and summer are relatively few and, for precisely this reason, tend to be more sought-after and expensive.