What are the most important factors for you?
Use our checklist as a basis for searching for your dream property.
You should consider the following points in your personal checklist:
- Accessibility by public and private transport
- Distance to your workplace, proximity to after-school care, kindergartens and schools
- Infrastructure such as shopping facilities, doctors, sports and cultural facilities
- View, sun exposure, noise and emissions
- Development of prices and population, construction activity
- Economic strength, job opportunities
- Tax burden
Prices: almost only rising
As a result of the extremely low mortgage interest rates, owning your own four walls can be significantly cheaper than renting a comparable apartment. In contrast to the low interest rates, the price level for single-family homes and flats has risen in Switzerland in recent years – and the rate in cities and conurbations is above average. “Around three quarters of the total population live in municipalities that experienced price increases in 2019,” says Matthias Holzhey, economist and Head of Swiss Real Estate Investments at UBS.
Stagnating or even falling prices have so far been the exception rather than the rule. Nevertheless, it should be noted that in 2019, individual municipalities in peripheral regions were affected by falling market prices. This applies to certain municipalities in Valais, the Bernese Jura, Ticino, Toggenburg in Eastern Switzerland or some locations in Glarus. This is often due to a combination of several factors, such as below-average job opportunities and a decline in population. “Population development naturally always has consequences for longer-term price development,” says economist Holzhey.
There is much to suggest that the interest of home buyers and investors will continue to focus on cities and large agglomerations in future. This is shown by the population forecasts of the Federal Statistical Office, which stretch into 2045: the conurbations of Zurich and Geneva will continue to grow in the medium term, while other cantons such as Jura, Neuchâtel, Uri, Appenzell Innerrhoden and Nidwalden will record weaker growth.
Benefit from our know-how
You should contact your client advisor before you decide on a property. Our advisors have sound specialist knowledge and will be happy to assist you – for example in assessing the market value of the property or answering questions on indirect amortization with pension funds and the resulting tax savings, the tax burden in general and, of course, financing. Client advisors have access to a range of tools that allow them to conduct a detailed location assessment. The Regio tool provides solid data from 2,000 Swiss municipalities, such as price trends, taxes or population development. In addition, a market price valuation answers questions about specific properties such as whether the purchase price demanded is in line with market conditions, how the property rates in terms of location quality, accessibility and infrastructure, and what are the estimated renovation costs of existing properties.
Contact your client advisor
Our advisors have sound specialist knowledge. Call them, they look forward to hearing from you.