Davos Rental Prices Soar as Global Elite Flocks to World Economic Forum
Davos, Switzerland, renowned for hosting the World Economic Forum (WEF), is witnessing astronomical rental prices as the global elite descends on the picturesque town for the prestigious event. Local landlords are capitalising on the limited accommodation, turning the annual gathering into a lucrative business opportunity.
Limited Accommodation Capacity
With approximately 50 fully booked hotels and a limited number of vacation homes providing around 25,000 beds, Davos is pushing its capacity limits during the WEF. Even neighbouring towns like Klosters and Bad Ragaz contribute to the demand, creating a revenue boom akin to the summer months.
Exorbitant Rental Rates
Individual property owners are leveraging the WEF to charge exorbitant rental rates. Some shop owners rent their establishments for jaw-dropping prices, ranging from $200,000 to $300,000 weekly. Accommodations, typically fully booked months in advance, are listed on platforms like Airbnb for as much as $1,614 per night, even for a room with a shared bathroom in a residential apartment.
Unprecedented Rental Costs
For those looking to book an entire place for the week, costs can soar to at least $2,386 per night. Individual property owners are taking advantage of the demand, with rentals reaching up to $18,387 per week and, in some cases, surpassing this figure. One landlord asks an astonishing $86,197 for a 4.5-room apartment during the WEF week, equivalent to $14,366 daily.
Summit-Driven Luxury Property Surge
Due to the fundamental laws of supply and demand, luxury property prices in Davos have significantly increased over time. During the week, prices have skyrocketed due to the unique demand the WEF event has generated. The trend is not passing; prices have steadily climbed for years as providers seek to capitalise on the annual gathering.
An Unusual Trend: Year-Round Rentals
The demand during the WEF week has reached such extremes that some individuals rent houses in Davos for an entire year, finding it more cost-effective than booking for just the WEF week. The same applies to retail spaces, highlighting the unprecedented impact of the summit on the local real estate market.
As attendees at the WEF face mounting expenses, including steep ticket prices and high costs for food and events, Davos has become a spectacle of luxury and excess during the annual gathering of global elites. The situation underscores the unique economic dynamics created by the demand for accommodations during the prestigious event.