_Switzerland - Back under the spotlight

The world’s wealthy are no longer drawn to Switzerland purely as a result of its benign tax regime, instead personal security, privacy and education are emerging as key motivations behind new residency applications.

Kate Everett-Allen May 30, 2017

The results of our 2017 Attitudes Survey, contained in The Wealth Report 2017, shows that ultra high net worth individuals (UHNWIs) deem lifestyle and personal security to be the most important factors when considering where to reside. At a time of heightened geopolitical tension this finding may come as no surprise but it helps explain Switzerland’s widening appeal.

Switzerland ranks as one of the safest places to reside in the world according to Mercer. Three Swiss cities – Geneva, Zürich and Basel – sit within the top ten in Mercer’s 2017 Quality of Living rankings. No other country is as well-represented.

While the lifestyle and education on offer within Switzerland continues to attract buyers, favourable tax rules are a further boost for the world’s wealthy.

Swiss policymakers have introduced their fair share of measures restricting who can buy what, and where, but these have remained largely static since Lex Weber’s introduction in 2013.

Since then, residential property in some of the world’s other top cities has been the subject of a range of new measures, from foreign buyer taxes and stamp duty hikes, to new administration fees and restrictions on multiple property purchases.

This has put Switzerland back in the spotlight. Figures from our 2017 Attitudes Survey show 26% of UHNWIs say protecting their wealth from political interference is one of the most important factors when managing their wealth.

Pricing

Geneva and Zürich saw prime residential prices dip in the year to March 2017, slipping 2% and 7% respectively. However, wealth preservation, not appreciation, remains the focus for most buyers in Switzerland.

Permanent residents are undeterred by softening prices and the Franc’s strength given their long-term outlook. The CHF 4m-20m market in Geneva has been notably strong with 96 sales recorded in 2016, up 17% year-on-year.

For those buying as a non-resident in one of the few holiday zones (amongst them Vaud, Valais and Lausanne) the combination of low interest rates, quality stock and limited supply is helping to support prices with sales activity focused below CHF 5m at the current time.

For the full analysis read our Switzerland Insight Report, extracted from our Switzerland Inside View which also features a market update and buyer’s guide

For more information on the Swiss property market or to discuss any property requirement you might have please contact Alexander Koch de Gooreynd.