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In the swiss property market, demand for residential property has risen considerably in the wake of the pandemic. The introduction of remote working - not a previous trend in Switzerland - has meant that more Swiss residents are seeking to upsize to facilitate working from home and create more space for families. Homeworking has also encouraged buyers to consider properties further away from their place of work, commuting a little further into the office when required. Mountain locations saw a real estate market boom with values more than doubling in certain sought after locations.
In Switzerland’s largest towns and cities, the prime property will range in price significantly. City-centre flats can be luxurious, especially in renovated apartments in old buildings that retain historical features. In many cases, properties will have completely modernised interiors but retain their original external facades.
Average apartment prices in Switzerland for three-room apartments cost around CHF 600,000. You should note that the Swiss system counts "rooms" differently than in other countries, and a three-room apartment will usually only have two bedrooms (the third room is typically the kitchen/living space). While the average apartment price seems relatively accessible, in populous towns and commuter regions, apartments will cost significantly more on average. Even relatively small apartments in larger cities can easily cost a million francs, and high-end flats will command higher price tags.
Average house prices in Switzerland sat at around CHF 800,000 in 2021, but houses in Switzerland’s main cities are generally more expensive. At the top of the market, properties will be considerably more costly, and there is ample choice in the CHF 2 million to CHF 10 million range. Homes in the outskirts of larger towns with outside space can easily reach several million francs. Lakefront properties within easy commuting distance of Switzerland’s larger cities (predominantly Geneva and Zurich, but also canton Zug and the Lugano region) can command the highest prices. Overall, the price of real estate anywhere in the country means that most people will opt for a mortgage to buy Swiss property.
Following the trends in other countries, prices in the Swiss property market prices have risen partly due to the COVID-19 pandemic. With more flexibility around home working and the desire to spend more quality time with family and in open space, both residents and non-residents have been considering holiday property in Switzerland. Swiss mountain resorts have excellent internet and connectivity, with most resorts having 5G coverage, making remote working both easy and reliable. Many wealthy Swiss residents have weekend properties in the mountains, and there is additional demand for mountain property from non-resident buyers. Property prices depend largely on the popularity and desirability of the resort in question - and increasingly - its record for good snow in the winter season.
For residents, the restrictions on international travel spurred more exploration of Switzerland, and many of those who vacationed "locally" during the pandemic saw the allure of holiday property. In this respect, Switzerland has much to offer. Owners can use the property for ski vacations (including the New Year and the two-week ski break in February), hiking, and nature holidays in the summer.
The same trends that have influenced the uptake in holiday property purchases for Swiss residents have also influenced non-resident holiday home purchases. More people can work remotely more regularly, and many families also want to buy a property to enjoy holidays, skiing and nature.