Luxury real estate in Switzerland demonstrates the increase in prices and surge in demand
Luxury real estate in Switzerland enjoys a consistently high demand, which has not been affected by the pandemic and its consequences. A surge of interest in such properties was recorded in the second half of 2020, and since then it has not faded. It was due in part to lenient quarantine restrictions, unlike in most other European states.
Bank UBS Luxury Property has published a report on the state of the luxury real estate market in Switzerland. According to it, the country has significantly increased sales of luxury properties, and with them the price per square meter. And according to the analysts’ forecast demand is not going to decrease over the next year.
Over the past year the cost of luxury apartments and houses has risen by 9%, which is 2 times higher than the dynamics of the rest of the housing market in the country. The number of transactions in the sector of prestigious properties rose by more than 50% over the past year and 3 times over the past 5 years.
Bank experts say that there is significant interest from foreign investors. Among foreign buyers, most are the citizens of France, Britain and Italy. The main advantages of investing in Switzerland are the reliability of the franc, as well as the high level of medical care and flexible tax system. In addition, investors are trying to quickly acquire housing, given the limited supply in the segment of luxury housing. This is especially felt in popular regions.
Leader in the growth of prices for luxury real estate was Geneva and its suburbs. Here the rise in price was about 16%. In the Alps area housing was at 10%. Most expensive objects are sold in the town of Colonie, which is located on the shores of Lake Geneva. Prices for housing here start from 39,270 dollars per square meter.
Experts believe that such a dynamic will last at least until the beginning of next year. However, the rate of price growth will gradually slow down, although the demand and volume of sales will remain at a high level.
As for conventional housing, its price is also increasing. The rise in price is due primarily to high demand and a shortage of supply.
The price of detached single-family homes has risen by 2.1% and apartments by 2.4%.
Traditionally, the most expensive houses are located near Lake Geneva, where the cost increased by more than 11%. The central and eastern region of the country showed an increase of about 9.3%.
Apartments were most expensive in the southern part of Switzerland, during the year their price rose by 7.9%, followed by Bern and Zurich.