The market for prestige real estate, i.e. properties with a value of CHF 4 million or more, seems to be only slightly influenced by the climate of uncertainty (war in Ukraine, poor stock market performance, rising mortgage rates, etc.) that we are experiencing. On the contrary, the global situation is encouraging the ultra-rich to invest in property; this is the case throughout the Lake Geneva region, where demand for high-end properties and apartments remains strong. The year 2022 was marked by significant transactions, including some sales at exceptional levels (between CHF 30 and 50 million). Prices are stabilizing, although they are correcting after the increase posted between 2020 and 2021.
The most sought-after properties are waterfront properties, prestigious apartments and private mansions; the left bank of Geneva, Terre-Sainte and Western Lausanne are particularly well priced. The location, the view (lake), the quality of the finishings, the excellence of the construction, the surrounding amenities are key criteria; recently, energy efficiency has also become a priority.
Mountain real estate is also very attractive. Our analysis shows that the average price of prestige properties has increased by 5.8%, compared to 4.6% last year. A peak not seen since 2014. The Swiss ski resorts of Crans-Montana and St. Moritz are leading the way. Strong demand, coupled with a very limited supply of property in several resorts, explains this record level of prices. The shift to teleworking, the search for nature and the need to recharge one's batteries have stimulated the market. In addition to buyers who invest in a second home that they rent out for part of the year, a growing number of ultra-rich people are looking to buy a property to spend long periods of time there and reserve it exclusively for their private use. Easy access to the resorts is a decisive factor, as is the presence of quality infrastructures (international schools, in particular).
However, it is important to remember that the wealthy clientele is mainly driven by emotional aspects. Purchases are generally made on the basis of a whim; however, consideration of the quality/price ratio is a secondary consideration.
Le Journal de l'Immobilier
Edition du 7 décembre 2022 n°57
Rubrique - Les experts : L'Immobilier