How much does real estate cost in Switzerland in 2019? What are the price dynamics and what do experts predict? You will learn about this from our article.
Demand for real estate in Switzerland
The popularity of real estate in Switzerland among wealthy people from all over the world is only growing every year: for example, according to the international consulting company Knight Frank, in 2018 the number of requests for the purchase of real estate in the “Alpine paradise” tripled, and the country itself, together with the UK and Monaco has become one of the three leading countries where Russians buy luxury real estate. Both residential and commercial real estate are in demand.
This increased interest in luxury real estate in Switzerland is explained by the prospects for investment in a stable European country, the possibility of preserving capital and long-term ownership of a liquid asset. Also, the one-time taxation system plays an important role in this issue (more about this in our article “Real Estate Taxes in Switzerland”).
Among the Russian business elite who have chosen Switzerland for themselves, according to the international law firm Caputo & Partners, one can find such names from the Forbes list as Gennady Timchenko (canton of Geneva), Vasily Anisimov, Viktor Vekselberg and Dmitry Rybolovlev (canton of Zug).
Price dynamics and trends in the Swiss real estate market
The Credit Suisse report on the state of the Swiss real estate market in 2018 clearly shows several noteworthy trends, including influencing the pricing of the sector.
Thus, according to analysts, GDP growth, a slight decrease in unemployment and an increase in household incomes lead to an increase in demand for the purchase of real estate in Switzerland, and at the same time there is a decrease in construction activity. The combination of these factors – increased demand and housing shortages – continues to lead to a further increase in real estate prices.
How much does real estate cost in Switzerland in 2018?
ETH Zurich and the price and tariff comparison site comparis.ch recently published the results of a study of real estate prices in Switzerland. The analysis was carried out on the basis of 1.5 million offers for the sale of houses and apartments in 166 locations across the country from 2005 to 2017.
As a result of this analysis, it turned out that over 11 years, residential real estate prices have increased by 97% in almost all regions of the country. Based on the data, an interactive map was compiled with prices per square meter of housing.
Real estate prices in the Zurich suburb of Bülach have practically not increased, and this is good news, but there is also bad news – prices here are initially very high, and remain so.
So, according to the rating, the most expensive residential real estate is located in Zurich, and the largest increase in prices was also recorded here. For one square meter of housing, a potential investor will have to pay about 13 thousand Swiss francs.
The situation is similar with the purchase of housing in the communes of Horgen and Meilen (canton of Zurich), where they ask for 11,750 and 11,250 francs per square meter, respectively. In the cantons of Nidwalden and Zug, property prices rose by 82 and 69 percent respectively over 11 years.
If we look at prices directly for houses, the maximum average prices for a house with 5-6 rooms were recorded in the Zurich district and the Geneva district – more than one and a half million francs, for example:
- Meilen (canton of Zurich) median price is 2.5 million;
- Nyon – 1.75 million;
- Horgen and Lucerne – 1.65 million. Moreover, in the Valle Maggia region in the canton of Ticino, such a house will cost only 350 thousand francs.
According to the Numbeo portal, Geneva and Zurich are among the ten most expensive cities in the world in terms of property prices.
As for the reverse side of the rating, the cheapest square meter is in the canton of Neuchâtel (which is also called the “tax hell of Switzerland” due to unfavorable conditions for doing business) – for example, for a square meter of housing in its commune of Le Locle they ask for only 3,250 francs.
In the canton of Bern, in Goms and Courtelary, prices per square meter are 3,500 and 3,750 francs, respectively. There are also places where such an intensive increase in real estate prices was not observed: for example, in the commune of Hinterrhein (canton of Graubünden) the cost per square meter increased by only 9 percent, in the commune of Leuk (canton of Valais) – by 23, and in the commune of Goms by the same in the canton, property prices even fell by 2 percent. In general, in the canton of Valais, as many as five municipalities were included in the top ten areas with the lowest prices for apartments in Switzerland.