Switzerland has always been a safe haven for international investors in times of economic turbulence. I think we might all agree that now is such a time across Europe.
Yet as the cost-of-living crisis bites across a number of countries, we are also seeing prime markets continue to flourish, whether London, Paris or Geneva. As we head into autumn this trend is continuing, and whilst the Swiss franc remains strong, those EU or UK based buyers with Swiss properties who are looking to sell find themselves in a strong position.
This is fortified by the lack of supply in prime locations after the surging market of the past two years, and as the effects of the Lex Koller restrictions on second homes is being felt. A long period of low interest rates has underlaid a sustained period of price rises.
Widespread demand for owner-occupied Swiss property has led to the supply to decline by fifth over 2021, with apartments prices up 7.3 percent year-on-year, while the price of an average single-family house increased by 7.5 per- cent, according to real estate analysts. Wüest Partner.
In the Swiss Alps it’s been a busy summer, with international buyers keen to embrace the cooling breezes and crystal-clear lakes in a bid to escape the scorching temperatures experienced across Europe. Whilst Middle Eastern visitors have long gravitated to the prime resorts in July and August for this reason, it seems that climate change is motivating buyers to do this. Requests for dual-season homes has never been stronger.
If you wish to purchase a second home, don’t miss out on opportunities to buy in new developments open to non-Swiss resident purchasers. In the Four Valleys, it’s incredibly difficult to find something in Verbier, yet in the smaller resort of Les Collons, it’s still possible to buy a new home. The quiet resort with views of the Dent Blanche is a great place from which to explore Switzerland’s largest linked ski area.
In the village’s Dixence Resort, thermal baths and spa take advantage of the panoramic views. Ski in-ski out apartments in its boutique hotel and spa complex, La Cervin, start from CHF1.15m, whilst there is just one chalet left – a high-spec seven-bedroom property with private sauna.
View from La Dixence Resort
Yet the appetite to make this move permanent is also strong. The security of being a Swiss resident combined with the lifestyle the country offers is motivating buyers to enquire about this – Alpine Homes can provide fiscal advice on this and information on schools and more. Schools in the Alps have been increasing their facilities to cater for increased demand – Verbier, Villars and Crans-Montana are popular locations.
Finding a primary residence is also much easier than a secondary one due to the lack of supply we have mentioned. Might it be a fortuitous time to make that transition? But as we head into choppier economic waters – even Switzerland too – if you are keen to sell your second home this autumn, beware of being overly bullish. Over-ambitious pricing might cost you valuable time in moving forward with new plans for your family; or you could fail to take full advantage of the current market conditions.
We can advise on how to price your property to sell. Now, more than ever, is a good time to be guided by an experienced estate agent. To get in touch, click here.
Living room in Le Cervin Resort