Where to buy property in Switzerland?
Elizabeth Bagwell, Saturday, 16 November 2013
This article is part of a series of 10 articles about buying property in Switzerland. The other articles in the series cover the following topics:
Switzerland is a beautiful country with a high standard of living and a strong economy, so it's no wonder that investors from all over the world are interested in buying Swiss properties. Choosing where to buy a property in Switzerland is largely a matter of finding the right location for the type of property you want to buy, and establishing whether you can get a permit for this. There are no particularly cheap areas in Switzerland, with prices for an apartment typically starting at CHF 3,000 (EUR 2,500) per square meter. In the centre of major cities like Geneva and Zurich, prices are typically around CHF 15,000 (EUR 12,000) per square meter.
The country can be roughly divided by the three main languages spoken in Switzerland, but this is not a neat divide as many cantons use more than one language. The Swiss-French speaking region occupies the western end of the country. It stretches from Geneva to Bern and into the Valais. The Swiss- Italian region is in the south east, focused on the canton of Ticino and surrounding areas. The Swiss-German speaking region occupies the rest of the country. Each region has a great diversity of properties and investment opportunities, from modern offices to castles to ski chalets.
Why buy property in Switzerland?
Swiss property has proved a stable investment, continuing to rise throughout the financial crisis. Property prices have continued to rise, even as they've collapsed in other countries. Swiss mortgage rates are usually low, and occupancy rates are high, making Swiss property a reliable, although unexciting, investment. Holiday properties have the potential for a higher return, but are typically less reliable than long-term rentals.
Choosing a canton – why it matters
Switzerland is divided into 26 cantons. Each canton has a regional government, equivalent to that of states or provinces in other countries. Although the cantons are small, they have a significant amount of independence, and are able to manage their own affairs in a number of key areas, from property taxes to building permits. As cantons are small, it's easy to cross from one to another while property hunting without fully appreciating the variations in costs and taxes. Each canton is made up of hundreds of communes (local village or town councils) which also have a degree of independence and can set tax rates and building permits.
A result of this devolved system is that even if it's hard to buy in one village it may be easy in the next. If you're hiring a local estate agent or lawyer, they should be able to give you specific advice.
Major cities
Even the largest Swiss cities are small by global standards. The major cities are Zurich, Geneva, Basel, Lausanne and the capital, Bern. They are all popular destinations for major businesses and as a result are facing increasing housing pressure due to immigration. It's difficult to get a permit to buy a property [LINK] in these cities without being a resident. However, if you can acquire property in these areas, they are often excellent long term investments. Each of the cities mentioned has a charming old town, lake or river views, mountain views and larger office buildings and industry at the edges.
Lake Geneva region
From the borders of Lake Geneva to the Jura mountains stretches a gentle incline housing some of the most expensive property in Switzerland. Beautiful views, a mild climate and easy access to the UN, embassies and big businesses in Geneva and Lausanne make this a popular spot. Despite rising property prices, much of the area between the two cities remains agricultural. Non-residents may struggle to get a permit to buy here, but there are some truly unique properties available, including stately homes which have housed notables such as Churchill, Lord Byron and Charlie Chaplin. The area is still popular with celebrities and the very rich. Neighbouring France provides more affordable properties and simpler buying regulations, still within a 30 minute commute from Geneva's city centre.
Italian speaking region
Nestled in the Alps between Italy and Austria, the Italian speaking region of Switzerland is known for its beautiful weather and relaxed culture. The area combines some of the great charms of both countries, and is a popular tourist destination in both summer and winter. Camping, hiking and skiing are popular, as well as more luxurious gourmet vacations. The area is generally less resistant to international investment than the bigger cities, although some communes will place strict limits on the number of second homes allowed.
High mountains and ski resorts
Properties in ski resorts remain the most attractive investment option for many international buyers. Switzerland has hundreds of ski resorts suitable for all levels of skier and almost every bank balance. Properties in famous ski resorts, such as Zermatt (established over 100 years ago), Davos (home to the World Economic Forum) and Klosters (favourite of the British Royal Family) tend to start at CHF 1 million. However, smaller ski resorts have more reasonable prices, and as dedicated tourist towns tend to welcome foreign investment.
This article is part of a series of 10 articles about buying property in Switzerland. The other articles in the series cover the following topics:
Switzerland is a beautiful country with a high standard of living and a strong economy, so it's no wonder that investors from all over the world are interested in buying Swiss properties. Choosing where to buy a property in Switzerland is largely a matter of finding the right location for the type of property you want to buy, and establishing whether you can get a permit for this. There are no particularly cheap areas in Switzerland, with prices for an apartment typically starting at CHF 3,000 (EUR 2,500) per square meter. In the centre of major cities like Geneva and Zurich, prices are typically around CHF 15,000 (EUR 12,000) per square meter.
The country can be roughly divided by the three main languages spoken in Switzerland, but this is not a neat divide as many cantons use more than one language. The Swiss-French speaking region occupies the western end of the country. It stretches from Geneva to Bern and into the Valais. The Swiss- Italian region is in the south east, focused on the canton of Ticino and surrounding areas. The Swiss-German speaking region occupies the rest of the country. Each region has a great diversity of properties and investment opportunities, from modern offices to castles to ski chalets.
Why buy property in Switzerland?
Swiss property has proved a stable investment, continuing to rise throughout the financial crisis. Property prices have continued to rise, even as they've collapsed in other countries. Swiss mortgage rates are usually low, and occupancy rates are high, making Swiss property a reliable, although unexciting, investment. Holiday properties have the potential for a higher return, but are typically less reliable than long-term rentals.
Choosing a canton – why it matters
Switzerland is divided into 26 cantons. Each canton has a regional government, equivalent to that of states or provinces in other countries. Although the cantons are small, they have a significant amount of independence, and are able to manage their own affairs in a number of key areas, from property taxes to building permits. As cantons are small, it's easy to cross from one to another while property hunting without fully appreciating the variations in costs and taxes. Each canton is made up of hundreds of communes (local village or town councils) which also have a degree of independence and can set tax rates and building permits.
A result of this devolved system is that even if it's hard to buy in one village it may be easy in the next. If you're hiring a local estate agent or lawyer, they should be able to give you specific advice.
Major cities
Even the largest Swiss cities are small by global standards. The major cities are Zurich, Geneva, Basel, Lausanne and the capital, Bern. They are all popular destinations for major businesses and as a result are facing increasing housing pressure due to immigration. It's difficult to get a permit to buy a property [LINK] in these cities without being a resident. However, if you can acquire property in these areas, they are often excellent long term investments. Each of the cities mentioned has a charming old town, lake or river views, mountain views and larger office buildings and industry at the edges.
Lake Geneva region
From the borders of Lake Geneva to the Jura mountains stretches a gentle incline housing some of the most expensive property in Switzerland. Beautiful views, a mild climate and easy access to the UN, embassies and big businesses in Geneva and Lausanne make this a popular spot. Despite rising property prices, much of the area between the two cities remains agricultural. Non-residents may struggle to get a permit to buy here, but there are some truly unique properties available, including stately homes which have housed notables such as Churchill, Lord Byron and Charlie Chaplin. The area is still popular with celebrities and the very rich. Neighbouring France provides more affordable properties and simpler buying regulations, still within a 30 minute commute from Geneva's city centre.
Italian speaking region
Nestled in the Alps between Italy and Austria, the Italian speaking region of Switzerland is known for its beautiful weather and relaxed culture. The area combines some of the great charms of both countries, and is a popular tourist destination in both summer and winter. Camping, hiking and skiing are popular, as well as more luxurious gourmet vacations. The area is generally less resistant to international investment than the bigger cities, although some communes will place strict limits on the number of second homes allowed.
High mountains and ski resorts
Properties in ski resorts remain the most attractive investment option for many international buyers. Switzerland has hundreds of ski resorts suitable for all levels of skier and almost every bank balance. Properties in famous ski resorts, such as Zermatt (established over 100 years ago), Davos (home to the World Economic Forum) and Klosters (favourite of the British Royal Family) tend to start at CHF 1 million. However, smaller ski resorts have more reasonable prices, and as dedicated tourist towns tend to welcome foreign investment.
All types of property for sale in Switzerland by private sellers and estate agents. Find a your house or apartment near Zermatt, Davos, Ticino or near Geneva, Bern or the Valais.
Funding a property purchase effectively is key to a successful investment. Whether you're buying a family home or an investment vehicle, taking
advantage of Switzerland's low mortgage rates can improve the return. Find out how to find a Swiss mortgage and learn about the application process so
you'll be prepared for this big step.
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