Luxury real estate trends in Switzerland in 2024

According to recent reports, luxury property prices in Switzerland have continued to rise steadily, with high demand from both local and international buyers despite global economic uncertainties.

Potential purchasers are expanding their search to new Swiss destinations, taking advantage of the country's exceptional suburban infrastructure.

Home is the hub of the world

In recent years, the trend has been clear: more people are working from home and recognizing the value of a comfortable and spacious living space. Consequently, searches for owner-occupied accommodation in Switzerland have increased significantly, as renters look to move to the outskirts or leave the cities entirely to purchase their own properties.

According to recent data, buyer activity has remained strong, and most Swiss regions have registered higher property prices compared to previous years.

Property prices have grown faster than average, particularly in areas located away from major centers. This trend underscores that people are choosing properties in the countryside to have access to nature and a comfortable work-life environment.

In contrast to the middle class, many ultra-high-net-worth individuals have continued to increase their wealth in recent years. This is particularly true for owners of technology or e-commerce businesses and investors who have capitalized on market opportunities.

Alpine mid-market properties have faced challenges in some resorts due to limited availability for foreign buyers and decreased demand for second homes among Swiss residents. However, in prime resorts, demand has remained steady.

What can we expect in Switzerland's middle and luxury property market in 2025?

Looking ahead to 2025, we may see further polarization between prime and mid-market properties, as well as between top cities and other ski destinations.

Valais remains a bargain ski area and could see a significant bounce, but when it comes to luxury villas, the most sought-after locations are Gstaad, Verbier, Davos, Zermatt, and St. Moritz.

1. Switzerland remains at the forefront of responsible investment, according to recent studies by AXA Investment Managers.

2. Real estate prices are expected to remain stable, with a slight upward trend in prime locations.

3. The demand for single-family houses remains high, as confirmed by forecasts from Fahrländer Partner.

4. Lifestyle changes have led people to re-evaluate their residences, a trend supported by the Barnes survey report.

Now let's take a look at the locations luxury buyers are choosing, and why this segment remains very attractive in 2025.

Despite the trend of seeking larger out-of-town properties, there are still ultra-wealthy clients who love city life and want to own a piece of it.

According to the latest Julius Baer Global Wealth and Lifestyle Report, Zurich continues to receive high ratings. It is assessed as one of the most desirable cities for a luxury lifestyle, often ranking behind cities like Hong Kong, Shanghai, Tokyo, and New York, but offering a unique blend of quality of life and luxury. It's among the most expensive cities in the EMEA region, though interestingly, not solely due to real estate costs, which are higher in cities like London, Paris, and Monaco.

But in Zurich, people get what they pay for. Knight Frank's City Wellbeing Index reaffirms this, showing Zurich as one of the most livable cities in the world. Properties over EUR 6 million in areas like Zurichberg and lakeside locations are always keenly sought after.

Geneva is another excellent option for luxury city living. In Geneva, prime properties sell for around CHF 30,000 per square meter. Prices increase even further in the most prestigious areas like Cologny, just a ten-minute commute from the city center, where prices can top CHF 40,000 per square meter.

Demand for left bank properties — quieter than the right side of the lake, which is closer to the airport and motorway — is high, especially among those seeking properties with access to or views of Lake Geneva. Collonge-Bellerive is also fashionable and highly priced. Farther out, Hermance offers slightly lower prices but is still easily commutable to the city. A typical price for a four-bedroom lake-view house in Hermance is around EUR 5 million, whereas in the center of Geneva, a new one-bedroom apartment can cost about EUR 3 million.

One area that continues to gain attention as a luxury ski destination is Crans-Montana. Although it's upmarket, it's not as "jet set" as Verbier or Gstaad—and not quite as expensive yet. In recent years, the resort has undergone significant investment to modernize its building stock, shedding its outdated 1970s image. Crans-Montana benefits from holding a large share of new-build permits for properties that can be sold to foreigners in the canton of Valais. Experts believe that continued investment in the resort will push prices higher, making it attractive to both investors and residents.

Sport Club Residences has transformed a former hotel into luxury apartments, with prices starting from around EUR 2.5 million up to EUR 6.5 million for the penthouse featuring hanging gardens.

According to Savills, a leading global real estate services provider specializing in luxury properties across the French and Swiss Alps, many resorts are currently undersupplied with luxury properties. This is notably the case in Verbier and Andermatt, the latter of which continues to benefit from its exemption from foreign buyer restrictions until 2030. Andermatt has benefited significantly from luxury branding. The Chedi Andermatt, the first luxury-branded hotel and residence development in the area, opened in 2013 and remains a centerpiece of the resort. Additionally, Radisson Blu's Gotthard Residences have been attracting buyers, with units selling at premiums compared to other new developments in the area.

Switzerland remains a prime destination for luxury investment. Firstly, the Swiss franc continues to have a reputation as a safe-haven currency, which is a potent attraction during times of global uncertainty. Secondly, unlike some governments, the Swiss administration has maintained a stable tax environment, avoiding significant tax increases to fund recovery programs.

Additionally, there's the lump-sum taxation system, which benefits foreign residents. While many countries tax residents on their global income, Switzerland allows eligible foreigners to be taxed based on their living expenses in Switzerland rather than their worldwide income, which can result in a more modest tax sum. However, it's important to note that this tax regime has been subject to stricter regulations and is not available in all cantons.

Demand in the Swiss luxury market is becoming more diverse. Interest from the Middle East, Southeast Asia, and South America is strong. Even though Chinese buyers are not purchasing in great numbers, they are certainly heading to the Swiss slopes. Of course, there are plenty of Swiss buyers in the luxury segment as well. After all, Switzerland boasts over 40 billionaires — a significant number considering its small population — which contributes to a robust domestic luxury market.