Investing in real estate

Swiss real estate market is considered as the most stable market in the world. Its stability is due to high, long-term and effective demand, a stable and sustainable national currency, and a government regulation which prevents serious price fluctuations.

Access to low-cost and flexible financing, excellent tourism infrastructure, a currency which is escalating steadily are the major drivers of Swiss real estate market.

Despite global economic turbulence, Swiss real estate market has resisted very well to the crisis and demonstrated great stability over time. The continuous inflow of capital, the sustainable development of tourism, and the presence of many MNCs and international organizations ensure its sustainable and steady growth.

Today, commercial real estate, especially office buildings and shopping centres in Switzerland, are in a high demand driven by demographic factors and a relatively low rate new construction. Gradually growing real estate renting market is supported by strong purchasing power of the local tenants.

A steady stream of international companies transferring their headquarters to Switzerland guarantees that the commercial spaces will remain vacant only during a very short time.

The financial conditions are also very attractive, especially the interest rates of 1,8-2,8% p.a.
Why to invest in Swiss real estate?

Continuous increase of values – The prices for real estate in Switzerland have steadily grown by an average of 3-4% per year in the last twenty years, and according to the experts’ opinions they will continue to rise in the next decade.
Stable currency – The Swiss franc is one of the most secure and stable currencies in the world, and it has always been a safe haven for other currencies, especially during times of financial turmoil.

Favorable financing – Mortgages with 20 – 30 % of personal contribution, 65-80% LTV with repayment terms of more than 25-30 years at a rate of 1,5-2,5% are available from Swiss banks.

Low interest rates – Switzerland is one of the few countries where the financial sector has not been significantly destabilized by the global financial turmoil. Lending options have remained almost unchanged, and the interest rates have even gradually decreased.

Low risks – A political and economic stability, inflation lower than 1%, highly developed banking and legal systems, the stable currency considerably minimize the investment risks.

Predictable rental income – Swiss real estate benefits from high occupancy rates and rising rents, and as a result will generate a predictable and stable income for the investors.

Flexible taxation – Switzerland offers certain tax advantages depending on how the acquisition of property is structured. For instance, buying a property through the local holding company allows the investors benefit from a lower tax rate.

All these advantages attract the investors from all around the world who successfully receive a long-term stable income in Swiss francs.