While Switzerland is known for its high real estate prices, it can still be a worthwhile investment, depending on your budget and goals. If you plan to rent out the property, you can expect a relatively stable market with increasing demand for rental homes. Here's what you need to know about Geneva's real estate market and the process of buying property as an expatriate.
Geneva's real estate market
Why are there so few property owners in Switzerland? It's an interesting phenomenon to begin with.
A study by the (FHO) shows that homeownership in Switzerland is relatively low, with only 36% of Swiss residents owning their homes, the lowest rate in Europe. The canton of Geneva is among the lowest in Switzerland for homeownership, with a rate of just 18.7%.
The Federal Housing Office explains the phenomenon as follows:
Relatively late introduction of condominium ownership: Before 1965, except in the canton of Valais, owning an apartment building was not allowed in Switzerland. Since apartment buildings are most common in cities, there were few owners in urban areas. Today, however, there is a noticeable increase in apartment building ownership.
Good-quality rental housing at affordable prices: According to the survey, rents are generally affordable, with the average gross rent stabilizing at around 20% of a household's gross income. Moreover, the quality of rental housing is comparable to that of owned properties.
High property values: High property prices and the difficulty of securing mortgages are major barriers to buying an apartment or house in Switzerland, especially in large cities like Zurich and Geneva.
Outlook for the Swiss real estate market
According to the study, there is a growing demand for housing in Switzerland, but supply is only increasing slightly due to rising construction costs and delays in increasing housing density. As a result, the number of vacant homes has decreased significantly since 2020, and this trend is expected to continue.
The FHO predicts that rents will keep rising while purchase prices may drop slightly. However, in Q4 2023, the Swiss residential property price index still increased by 1.1% compared to the previous quarter.
What about property in Geneva?
According to , the number of properties sold in Geneva during the first three months of 2024 decreased by 8% compared to the same period in 2023.
In the first quarter of 2024, the median price for a resale apartment in the canton of Geneva was CHF 1.215 million. For single-family homes, the median price was CHF 2.128 million.
By comparison, in 2019, the median prices for apartments were CHF 1.060 million and CHF 1.870 million for single-family homes.
Property prices in Geneva
According to , a real estate information and services aggregator, the median price per square meter for purchasing property in Geneva is CHF 15,826.
Where to buy affordable property in Geneva
The cheapest area to buy an apartment in Geneva is Jonction-Plainpalais. Other neighborhoods, such as Charmilles-Ch芒telaine and S茅cheron-Prieur茅, also offer slightly lower-than-average prices.
Jonction-Plainpalais: The median price of a property currently for sale is CHF 901,869. The median price per m虏 is CHF 6,258.
颁丑补谤尘颈濒濒别蝉-颁丑芒迟别濒补颈苍别: In this district, count CHF 1,507,500 and CHF 12,617, respectively (price per square meter).
厂茅肠丑别谤辞苍-笔谤颈别耻谤茅: The median price of a property currently for sale and the median price per square meter are very similar to the previous district.
The most popular neighborhoods in Geneva
The most popular neighborhoods in Geneva are the city center, Champel-Roseraie and Eaux-Vives-Lac. By popular, we mean the neighborhoods with the most properties for sale.
City center: The median price of a property currently on sale is CHF 1,890,000. The median price per m虏 is CHF 15,042.
Champel-Roseraie: In this district, count CHF 2,400,000 for the median price of a property for sale and CHF 16,764/m虏 (price per square meter).
Eaux-Vives-Lac: The median price of a property for sale is CHF 2,390,000. The median price is CHF 18,429/m虏.
You'll find other attractive districts in Geneva where the median price per m虏 is CHF 18,492. These include arrondissements 1207, 1208 and 1206 in particular.
The process of buying property in Geneva
Most property transactions in Switzerland are handled through real estate agencies. To reserve a property, the agency will require documents such as your ID, residence permit, and proof of financial capability. The agency will then guide you through the process of securing a bank loan (if needed) and arranging a meeting with a notary.
For most buyers in Switzerland, securing a loan is a crucial and challenging step. Swiss banks conduct a thorough review of your financial situation. They require a down payment of at least 20% of the property's purchase price and ensure that your total debt (including the mortgage and ongoing costs) does not exceed one-third of your gross income.
Mortgage interest rates can vary depending on the loan term. Currently, for loans between 2 and 10 years, the rate is about 2.5%.
On the other hand, finding a real estate agent and a notary is relatively straightforward.
The cost of buying a property in Geneva
In addition to the property's purchase price, you need to consider the following costs:
- Notary fees: generally between 0.02% and 1% of the total purchase price;
- Registration fees: these are the costs of registering the property in the land register. Depending on the canton, they represent between 1% and 1.5% of the total purchase price;
- Property transfer taxes: also depending on the canton, these amount to around 4% of the purchase price of the property;
- Value-added tax (VAT): which represents around 7.6% of the value of the property.
- Real estate agency fees, where applicable: for single-family homes and apartment buildings, these amount to 2-3% of the final sale price. For land, the fee is 5%. The exact commission may vary according to the agency's various services.
Good to know:
In Switzerland, real estate agency fees are typically the seller's responsibility.
As a homeowner, you'll need to remember to pay property tax. This tax, which is based on the property's value, is assessed annually.
Can foreigners buy property in Geneva?
The Federal Act on the Acquisition of Real Estate by Foreign Persons restricts the purchase of apartments and houses by non-Swiss individuals or companies based outside Switzerland, according to the (FOJ).
Important:
The law defines "foreign persons" as both non-Swiss nationals living abroad and non-Swiss nationals residing in Switzerland who are not citizens of an EU or EFTA member state and do not hold a settlement permit (C permit).
If you want to buy a home in Geneva as a "foreigner鈥�, you'll need to first obtain authorization from the relevant cantonal authority where the property is located. This authority will review your application, so it's a good idea to contact the canton directly. You can find the contact details on the .
Good to know:
Owning property in Switzerland does not automatically grant you the right to live in the country.
If you are a resident of Switzerland, a citizen of an EU or EFTA member state, or hold a C permit, you can purchase property in Switzerland without the aforementioned restrictions.
Non-EU/EFTA national living in Switzerland
To be eligible to buy property in Switzerland, you need to hold at least a residence permit and use the property as your main residence.
If you purchase land and plan to build on it, you must begin construction within one year of acquisition.
Cross-border worker
If you are an EU/EFTA national , you can buy a second home in the area where you work. However, you cannot rent it out while you remain a cross-border commuter in the region.
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
