immo!nvest – Die Plattform für Standorte und Immobilien

Tag: Luxusimmobilien

  • Prices for luxury properties reach their zenith

    Prices for luxury properties reach their zenith

    Luxury properties in Switzerland were on average 2 per cent more expensive in 2023 than in the previous year. This means that the rapid rise in prices in the luxury segment is coming to an end after peaking at 10 per cent in 2022, writes UBS in a press release. The experts at the major bank attribute the slowdown in the market to the weak economy and the strong Swiss franc.

    “Advertised properties are attracting fewer potential buyers, who are increasingly questioning the price,” UBS property economist Katharina Hofer is quoted as saying in the press release. “If sellers are under time pressure, they may have to accept discounts.” For the current year, Hofer expects prices for luxury properties to fall by a low single-digit percentage year-on-year.

    In terms of location, St. Moritz GR leads the rankings with prices per square metre of over CHF 42,000. In municipalities with a high proportion of luxury properties in Geneva or on Lake Zurich, prices per square metre start at CHF 25,000. Established luxury locations such as St. Moritz, Gstaad BE and Verbier VS have formed the top group of the most expensive Swiss municipalities for a good ten years.

    In the canton of Zug, on the other hand, UBS experts have identified a remarkable increase in prices in the municipalities analysed over the past ten years. According to UBS, this shows “how attractive the low-tax strategy has made the location for some time now, particularly for people with high incomes and assets”. In Andermatt, the availability of numerous high-priced properties has led to the municipality in Uri being increasingly perceived as a luxury destination.

  • No easy task: marketing Swiss luxury properties

    No easy task: marketing Swiss luxury properties

    The price increase in the luxury segment in Switzerland, which reached almost 10 per cent in 2022, is coming to an end. Last year, prices for luxury homes rose by an average of around 2 per cent. Single-family homes in particular slowed down, with an increase of just over 1 per cent in 2023 compared to 8 per cent in the previous year. Growth in condominiums fell from 9 to 3 per cent. Overall, the luxury property market performed slightly weaker than the market as a whole, with prices currently 25 per cent higher than pre-coronavirus levels.

    Little support
    In the current geopolitical situation, Switzerland is considered a safe haven due to its stable institutions and high standard of living, which is a strong attraction. However, luxury property has become more expensive due to the strong franc and price trends, which has dampened international demand. The average wealth of Swiss households (excluding property) has remained unchanged in recent years. Economic growth is not particularly strong, which is affecting demand for high-priced property. According to UBS property economist Katharina Hofer, a slight decline in luxury property prices is expected for the current year.

    Three out of four of the most expensive locations are in the mountains. St. Moritz tops the list with prices per square metre of over CHF 42,000. Gstaad is close behind in the luxury segment (39,000 francs per square metre). Cologny on Lake Geneva records prices of over 35,000 francs per square metre, similar to Verbier. In other municipalities with a high proportion of luxury properties in the Geneva region and on Lake Zurich, luxury properties are priced from CHF 25,000 per square metre. For a property in good condition on 1,500 square metres of land, a purchase price of eight to ten million francs can be expected there. In Ticino, luxury prices start at just under 20,000 francs per square metre.

    Lower-cost locations are gaining ground
    A decade ago, the renowned luxury resorts of St. Moritz, Gstaad and Verbier already held their place at the top of the most expensive Swiss municipalities and were able to defend this position unchallenged. Katharina Hofer explains: “In general, luxury markets, especially traditional ones, show remarkable stability over a longer period of time. Short-term price corrections have been largely offset over the last decade.” In the Lake Zurich and Geneva regions, there have been few changes on average in the ranking of the 100 most expensive Swiss municipalities. The situation is quite different in Central Switzerland, where the municipalities analysed in the canton of Zug have moved up an average of more than 30 places within a decade. This illustrates how attractive the low-tax strategy has long made the location, particularly for people with high incomes and assets. However, the biggest winner of the last ten years is the up-and-coming municipality of Andermatt in the canton of Uri, which is increasingly being perceived as a luxury destination thanks to the construction of numerous high-priced properties. In Ticino, on the other hand, price levels have not been able to keep pace with the other municipalities due to an oversupply of luxury flats.

  • DHG launches sale of its first residential project in Dubai

    DHG launches sale of its first residential project in Dubai

    DHG Properties, the real estate development division of DHG Holding based near Zurich, is realising its first project in Dubai, the Helvetia Residences. It is being built in Jumeirah Village Circle in the centre of Dubai. It has now been officially unveiled. According to a press release, the company intends to participate in the boom in the property sector in the capital of the Emirate of Dubai. The investment is expected to amount to the equivalent of over 144 million Swiss francs.

    According to the information, property prices there rose by 19 per cent in 2023. DHG expects Dubai’s real estate market to grow by around 15 per cent in 2024. In addition, the United Arab Emirates expects the population to increase from 3.5 million people in 2023 to 5.5 million in 2030. As a result, more living space will be needed. “In response to the evolving market needs, DHG Properties will be at the forefront of this change and committed to developing premium and affordable housing options that cater to a key demographic in Dubai.”

    As Miloš Antić, Vice Chairman and member of the Board of Directors, says, DHG recognises “the importance of aligning with market dynamics”. He considers Dubai to be “one of the hottest markets, if not the hottest for property at the moment”. Accordingly, this property project will offer its buyers a high return.

    The luxuriously appointed Helvetia Residences will comprise 430 flats of varying sizes. They will also offer urban amenities such as a rooftop pool, a fitness centre, a restaurant and a pharmacy.

  • Luxury real estate is on the rise

    Luxury real estate is on the rise

    According to UBS , the pandemic has sparked a sharp surge in demand for luxury real estate. As their recently published study “ UBS Luxury Property Focus 2021 ” shows, demand rose by more than half compared to the previous year. This is about three times as high as the five-year mean. As a result, prices also rose above average: "The excess demand caused prices in the luxury segment to skyrocket by 9 percent in 2020 – significantly more than the 4.4 percent in the average Swiss home market," said UBS real estate expert Katharina Hofer in a press release quoted.

    UBS is making a “gold rush” on Lake Geneva. The municipality of Cologny remains the most expensive luxury real estate market in Switzerland. In the luxury communities near Geneva, prices rose by an average of around 16 percent over the course of a year. The highest-priced properties in Gstaad can be found on the second home market. In the Upper Engadin, the luxury segment begins just below the purchase prices there. Luxury properties in mountain communities were also 10 percent more expensive. In contrast, the price increases in the Lake Zurich region and in Central Switzerland were more moderate with an average of 6 percent.

    The UBS report cites the positive development of the financial markets as the reasons for the high demand. In addition, the long-term intrinsic value was particularly attractive in view of the uncertain economic development. In addition, the study notes an increased interest from abroad. "Because the local measures to contain the pandemic were far less restrictive than, for example, in France, Italy or Great Britain." A large part of the foreign demand comes from these countries. UBS also cites the low risk of higher taxes in this country for top earners and the good health system as motives.

    UBS expects that current demand drivers will also remain in effect in the second half of the year. Accordingly, an above-average number of transactions and local price increases can still be expected. And the trend should continue beyond the year, so Hofer: "Anyone looking for a place with stable institutions and established luxury locations in global luxury markets should increasingly focus on Switzerland."