Swiss luxury real estate: sharp price increases despite the corona pandemic

The beginning of the corona crisis in early 2020 did not bode well for the luxury real estate market, according to a study by UBS published on Wednesday. After a strong 2019, the uncertainty surrounding the pandemic initially also slowed price increases for top Swiss real estate.

But it did not stay that way. On the contrary, the pandemic triggered a boom in demand for luxury real estate. The number of transactions rose last year by more than half compared to the previous year. It was about three times as high as the five-year average. The talk is of price increases in “unimagined heights”.

UBS real estate expert Katharina Hofer: “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.”

Price explosion in Geneva and the surrounding area

Prices rose most in the luxury communities near Geneva. There they climbed an average of around 16 percent within a year. Luxury properties in the mountain communities also rose in the double-digit percentage range by 10 percent. In the Lake Zurich region and central Switzerland, however, the price increases were more moderate, averaging 6 percent.

The most expensive luxury real estate market remains the municipality of Cologny GE. In the top price segment, homes are advertised from CHF 36,000 per square meter of living space.

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