City A.M.: Legal changes that may make Swiss property purchases more costly in future24 Feb, 2017 by Investors In Property
According to Swiss property specialist Simon Malster, of Investors in Property, there is currently a window in which buyers might make a good deal in a number of Swiss locations. “Developers that had building permits when the 2012 law was introduced are keen to sell those properties before their permission runs out,” he says. “I’ve seen discounts of 10 to 20 per cent.”
In time, though, the lack of supply in some resorts could have two effects: to push up prices where second home stock is limited and to send buyers to resorts that are still developing. Malster points to Crans-Montana, which fell out of fashion but is now staging a comeback.
Future plans include new lifts and infrastructure, an increase in residential projects, and the arrival of international brands, such as the Six Senses hotels. Property prices in the resort average CHF15,000 to CHF20,000psqm, but Malster says he’s now seeing prime development reaching CHF30,000psqm.
Other good bets are Andermatt, where a huge residential and leisure development offers apartments and chalets, priced from around CHF309,000, with all permits for second and foreign ownership already in place.
Malster also recommends the high-altitude resort of Wengen, which he says is “always popular” and where prices hover around CHF10,000psqm.
But he cautions that such places have limited space. “As stock dries up and the amount of land is exhausted, it’s going to be more difficult to find good new projects in prime positions in the most sought-after resorts.”
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