Why is real estate in Switzerland so popular among foreigners?

Popularity of Swiss real estate

Real estate in Switzerland is in significant demand among citizens of Great Britain, Germany, Spain, Italy, the Netherlands, as well as people from East Asia and the Middle East. In recent years, buyers from CIS countries have become increasingly active in the Swiss market. Such investors include well-known personalities such as Vasily Anisimov, who owns Coalco Metals, Viktor Vekselberg, who runs the Skolkovo Foundation, and Dinara Kulibayeva, daughter of former Kazakh President Nursultan Nazarbayev.

Investments in lake real estate

Although Switzerland is landlocked, lakeside real estate has established itself as a solid investment destination.“Offers with panoramic lake views at the junction of several cantons can guarantee solid stability and sure income in the long term. Russian investors are particularly interested in the areas around Lake Geneva, as well as the surrounding areas of Zurich and Lugano. Demand in these regions has noticeably exceeded supply for a long time,” adds Irina Simonyan, who is marketing director of Henley Estates in Russia.

Popular regions for purchasing

According to information posted on a specialized website, among the most popular places to buyreal estate in Switzerland stand out such regions:

• Lake Geneva (including the cantons of Vaud and Geneva)
• Vale
• Ticino
• Zurich
• Ski resorts in the cantons of Bern, Graubünden and Uri

According to a Knight Frank report,the average budget that Russian citizens plan to spend on housing is approximately 6 million euroswhich in Swiss francs corresponds to a sum of about 7.4 million.

Investing in Geneva

Lake Geneva has become a real dream for those wishing to buyreal estate. According to Knight Frank specialists,Russians rank third among foreign buyers in the canton of GenevaIt should also be noted that Spanish investors have been active lately. It is also worth noting that Spanish investors have been active recently.

Statistics and market trends

Geneva statistics show that in 2000, the share of foreigners among buyers was 28%, while in 2008 it rose to 44%.At the moment, almost half of all real estate sales transactions are carried out by foreign citizens. However, in order to own a home in cities such as Geneva or Zurich, foreigners are required to obtain permanent resident status.

Demand for luxury housing

Interest in luxury real estate in this region is surprisingly high: according to statistics, when an object worth more than 10 million francs hits the market,60% of potential buyers turn out to be foreigners. On average, foreign buyers are willing to lay out 17% more than the Swiss: our citizens, as a rule, buy villas at a price of about 1.5 million francs, while foreigners - about 2.7 million francs.

Expensive deals in the vicinity of Geneva

Several expensive deals have been made in the vicinity of Geneva, among them acquisitions made by the daughters of the presidents of various Central Asian countries.

Thus, Gulnara Karimova, daughter of Islam Karimov, former president of Uzbekistan, owns a luxury estate worth 18.2 million Swiss francs, equivalent to about 14.7 million euros. Her sister Lola Karimova-Tillyaeva is also not far behind, owning a villa worth 43.4 million francs or 29 million euros. In turn, Dinara Kulibayeva, daughter of Kazakh President Nursultan Nazarbayev, has a property with a market value of an impressive 74.7 million francs (60.5 million euros).

Attractive neighborhoods in Geneva

Some of the most attractive neighborhoods in the Swiss canton of Geneva include the Old Town, Champelle, as well as several small towns such as Collonge, Bellerive, and the particularly notable one, Colon.

Nicolas Grange, manager of the real estateagency network Courtiers Partenaires, noted that locals prefer properties located by the lake, while Russian buyers are more likely to choose Colonie for residence. This place has become synonymous with luxury living, and for many people living here is like living in the famous Beverly Hills. According to his observations, nine out of ten Russian buyers dream of moving here - in this coastal suburb of Geneva with real estate prices approaching 4 thousand Swiss francs per square meter (about 3.3 thousand euros).

Canton of Valais and its attractiveness to foreigners

The canton of Valais in Switzerland has proven to be a welcoming place for foreign buyers, standing out among other regions, especially after 175 real estate permits were issued here in 2013. Irina Simonyan reports that 165 such permits were registered in this canton:

• 50 in the O-Valley neighborhood;
• 71 in the center section;
• 44 in Ba-Val.

This same indifferent atmosphere is home to one of Switzerland's most famous ski resorts, Verbier. This resort offers excellent recreational facilities including:

• sports complexes;
• fitness centers;
• rollers;
• tennis and squash courts;
• pools;
• saunas;
• many cafes and restaurants;
• nightclubs and discos;
• cultural institutions (five museums and four cinemas).

Foreigners often buy chalets both for their own vacation and for subsequent renting out. It is important to note that it is better for foreign investors to purchase through legal entities, because individual buyers can own housing only within special quotas. The minimum cost of apartments starts from one million francs, and in Verbier, according to Knight Frank, in the second quarter of 2013, housing prices increased by 6.2%.

Canton of Ticino and its uniqueness

Canton Ticino, known for its Italian flavor, pleases buyers with its Mediterranean climate and comfortable lifestyle, which attracts people from Russia and Scandinavian countries. Lugano, located in the north of the picturesque lake with the same name, is close to the Italian border and is famous for its high level of educational system and excellent ecology.

Popularity among foreign buyers of real estate in Lugano

Recent research conducted by Knight Frank has shown that Russians are becoming the main buyers of luxury real estate in the charming town of Lugano. Russian buyers are not the only ones interested in the area; residents of the UK, Germany, Italy, Scandinavian countries and Middle Eastern countries are also actively looking for housing.

Demand for real estate

According to the analysis, among those who wish to purchase housing for permanent residence, the most popular are objects with prices from3 to 6 million euros. And for those considering the purchase of a second home, more preferred options are cost options from800 thousand to 3 million euros.

The most popular locations

The most sought-after places to buyreal estate in this region are:

• Castagnola
• Morcote
• Paradiso

Notably, in 2012, home prices in Lugano fell by a3-5%and as of today the average cost per square meter ranges from4 to 6 thousand euros. However, the cost of luxury real estate is much higher and can reach up to .2-3 million eurosper square meter, which makes such investments very serious.

Zurich as an economic center

Zurich is undoubtedly considered one of the most prestigious cities on the planet. С2001 to 2011the number of foreigners living in Surich has increased by14.7%. Currently, foreign nationals account for about30%of the total number of city residents.

Share of Russians among foreign buyers

Knight Frank statistics show that Russians occupy the third position among foreign buyers in the canton, second only to citizens of Germany and Austria. The British are also active in real estate transactions.

Switzerland's financial capital

It is fair to say that Zurich is rightly called the economic and financial center of Switzerland. Many Swiss banks and insurance companies have their head offices in this city, such as:

• Credit Suisse
• UBS
• Zurich Financial Services
• Swiss Re

A study conducted by Private House Coopers has shown that Zurich is in sixth place among the most attractive European cities for real estate investment. At the same time, foreign buyers are particularly interested in high-quality and expensive properties.

Real estate prices in Zurich

Inin 2013real estate prices in Zurich have generally remained at the same level as in the previous year, with the average price of luxury apartments and houses at around18 thousand eurosper square meter. Mansions on theGold Coastwhich stretches from Zollikon to Stefa. Housing with panoramic views of Lake Zurich is also in high demand.

Popularity of ski resorts

Ski resorts such as Davos, Gstaad and St. Moritz are becoming increasingly popular with affluent foreign buyers, including Russians. According to Irina Simonyan, clients often ask for information about the availability of helipads and services provided by major hotel operators.

Prices for luxury ski facilities

Luxury properties in Swiss ski resorts are observed with prices of approx.27 thousand eurosper square meter. The maximum rates are fixed in Gstaad, where the cost per square meter can reach surprising levels45 thousand euros.

Results

Thus, the luxury real estate market in Switzerland continues to show high interest, especially from Russian-speaking buyers.

Introduction to the Swiss Real Estate Market

Real estate in Switzerland certainly remains in the spotlight for both foreign investors and those looking for the perfect place to live. In this article, I have taken a detailed look at why this country has become so attractive to buyers from the UK, Germany and other countries, including those from the CIS.

Popular regions for investment

The main emphases were on popular regions such asLake Genevaand cantonValewhere demand for housing has long outstripped supply.

Aspects of Switzerland's attractiveness

Special attention should be paid not only to the fact of buying real estate itself, but also to how it relates to cultural and economic aspects. Switzerland attracts not only with its safe and stable market, but also with its high quality of life, developed infrastructure and picturesque nature.

Facts about the real estate market

I pointed out that foreign buyers, especially those from Russia, can afford more expensive properties than locals, indicating that demand for luxury real estate in these regions continues to grow.

Summarizing the results

To summarize, I would like to emphasize that buying real estate in Switzerland is not only a good deal, but also a step towards a lifestyle that many wealthy individuals appreciate. It is not just an investment, it is an opportunity to become part of a unique and high quality community.

Final thoughts

Switzerland continues to be one of the most desirable places to live and invest, and it looks like this trend will only gain momentum in the future. Thus, for those considering purchasing a home in this country, it can be a great opportunity to not only preserve capital, but also enjoy a high quality of life.