Real Estate Profile
REAL ESTATE INVESTMENTS
Real estate purchase in Switzerland is a long-term and guaranteed investment but not a short term high return prospect. This statement is made due to such factors as average increase of real estate in Switzerland which is 1-2% annually, and stability of the Swiss frank currency with annual inflation of 1%.
The level of yield in Switzerland is 5-8% annually (gross yield = rent payment). The most interesting from the rent revenue point are separate buildings, and so called "aparoteli".
Factors that influence the profitability are: location, level of expenses for property maintenance (20-30% from gross yield), year of construction, and designation of the object.
We suggest if you do not have to buy property in the specific area, it is worth considering buying property out of the central part of Switzerland or big cities and preferably older buildings. Such investment will bring you a better return.
Prices for properties in cantons range greatly; from 1500-2000 Euro/sq.m for a budget apartment not in central part of Switzerland to 10000-12000 Euro/sq.m in the prestigious regions of Lake Geneva and Lake Zurich. Prices are reliant on such factors as building conditions, infrastructure and window views. Prices for residential properties in such tourist regions as Montre, Lozanna and around Lake Geneva are more costly than in other neighbouring regions.
Experts believe that in the near future capital growth will be noticed among the following types of properties:
- Luxurious apartments in pictorial regions between Geneva and Lozanna, Lake Geneva region;
- Apartments and villas in the Romanic Rivera, located between Lozanna and Montrei; this region is included into UNESCO's cultural heritage;
- Villas and apartments in the prestigious ski stations.
These types of real estate will bring especially high yield during winter ski season.
The real estate purchase procedure for non-residents in Switzerland is one of the most difficult in Europe, but still possible. According to the Lex Friedrich Law, foreigners who want to buy real estate in Switzerland need to get a special permission for such a purchase.
A certain number of quotas for buying real estate by foreigners are given out annually, and further divided among 26 cantons.
A foreigner can buy and own only one real estate object for their personal use. Moreover, foreigners must register the real estate on a company name, not a private person's name.
There are no restrictions regarding purchasing commercial property - hotels, offices, warehouses, shops - they can be bought in any cantons.
Our company along with our foreign partners will accompany you during the whole process of purchase.
We will be delighted to provide you with detailed information on real estate purchase procedure in Switzerland.