Luxury Resort On The Horizon? Sawiris Opens Shopping Mall In Andermatt

(MENAFN- Swissinfo) Investor Samih Sawiris has unveiled a new shopping mall in Andermatt, a the mountain village in canton Uri, offering an array of luxury goods.

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Like a winter wonderland: Amid falling snowflakes, Egyptian investor Samih Sawiris inaugurated a new shopping mall in Andermatt on Saturday.“This is a dream come true for me,” he said with a beaming smile as the audience, including many locals, applauded. Yet, like all good fairy tales, Andermatt's story has its darker side.

Over the past 20 years, Sawiris has invested more than CHF1.5 billion ($1.68 billion) in Andermatt. With this, he has built a completely new part of the village: the Reuss district. Situated at the entrance to the village, slightly away from the centre, it is easily identifiable by its modern, expansive buildings.

The latest addition to the district is Furkagasse, a shopping street that Sawiris opened last weekend. It features luxury stores, gourmet restaurants, and even an Audi showroom.“This is the most important part of the project,” Sawiris stated. The development clearly targets affluent tourists. Sawiris emphasises the importance of diversity:“Not everything can be cheap, and not everything can be luxury. It's the mix that enriches a place.”

Sawiris enjoys strong support from the people of Andermatt, who appreciate his substantial investment in their village. Once reliant on the army as a major employer, the community faced economic challenges as the military presence diminished. During the Furkagasse opening, Sawiris was met with frequent applause.

However, not everyone is convinced. As each hotel, restaurant, and apartment complex rises, Andermatt increasingly resembles a luxury resort. This transformation has led to a steep rise in property and rental prices. In the Reuss district, Sawiris has built five apartment blocks comprising around 60 flats. The price per square metre has doubled in 10 years, now reaching CHF20,000. A 4.5-room flat is listed on a real estate portal for over CHF2 million.

Concerns about affordable housing

The surge in property prices has also affected rental accommodation.“When I see a 2.5-room flat costing CHF1,800 per month, I think that's a bit much,” one local resident told Swiss public television, SRF. Another man remarked that finding an affordable flat now requires connections. A woman added that home ownership is similarly out of reach:“Older people selling their homes naturally go for the highest bidder. Locals have virtually no chance of buying anything anymore.”

Andermatt's mayor, Peter Baumann, acknowledges the concerns of local residents.“As development progresses, prices inevitably rise. We are trying to counteract this by having the municipality purchase buildings for families and locals,” he explained. Nonetheless, he remains optimistic, describing the opening of Furkagasse as a“highlight” for the village.

The issue of affordability is likely to worsen in the coming years, as Sawiris is far from finished with his plans for Andermatt. Future developments include another hotel, an additional shopping street, a sports centre, and yet another hotel.

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