Several high-end apartment projects across the Zurich region are either significantly undersubscribed, or have not had enough take-up to warrant the start of construction, real estate figures show. 

 

"/> Several high-end apartment projects across the Zurich region are either significantly undersubscribed, or have not had enough take-up to warrant the start of construction, real estate figures show. 

 

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PROPERTY

Buyers back away from luxury apartments

Several high-end apartment projects across the Zurich region are either significantly undersubscribed, or have not had enough take-up to warrant the start of construction, real estate figures show. 

 

Buyers back away from luxury apartments
Löwenbräu Black

The trend for exclusive high-rise accommodation, complete with 24-hour concierge, seems to be in decline. Only 45 of the 58 apartments at Löwenbräu Black have been sold, newspaper Tages Anzeiger reported Monday.

The most expensive luxury apartments at the top of the Löwenbräu Black tower have taken so long to be snapped up that developer PSP Swiss Property has been prompted to re-think the space, splitting the penthouse into two smaller apartments instead.

The developers of the Mobimo Tower have adopted a similar strategy. They have increased their initial proposal for 33 large apartments to a greater number of smaller spaces, hoping that these will be easier to sell.

Despite the space reduction, the price of a single apartment in the Mobimo Tower is still estimated at between three and six million francs ($3.3-$6.6 million), according to Tages Anzeiger. In August, Mobimo reported that only two thirds of its properties had been purchased.

Peach Property, another major property developer which owns a prize section of real estate on Lake Zurich, has had to postpone construction several times because the take-up of the proposed apartments has been so low that the company simply could not justify launching the construction phase. 

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PROPERTY

Where to find property in Switzerland for under CHF 500k

Switzerland is not known for being a cheap country and property prices are higher than in other European countries, but it's still possible to find property bargains, some for even under CHF 100k.

Where to find property in Switzerland for under CHF 500k

Property prices are rising in much of Europe and Switzerland is no exception. As the average salary is high in Switzerland, finding homes for under CHF 1 million in some parts of the country becomes almost impossible.

Even when you do find cheap properties, they are sometimes quite literally too good to be true. For example, Switzerland’s famous one-franc home scheme had to be scrapped after nobody signed up. The cheap homes were, actually, too expensive when considering the costs for renovation or even how remote they were.

READ ALSO: Six no-gimmick websites that help you save money in Switzerland

Some of the properties in the scheme weren’t connected to the electricity grid, sewer system or even roads.

So, where can we find cheap(er) homes in Switzerland – that are still liveable or could be excellent investments for those who enjoy fixer-uppers (or huge DIY projects)?

Not an easy search

To find these gems, we used a property website that allowed us to search for real estate in the whole of Switzerland (instead of just a few main cities) and showed us homes with at least three rooms.

The price limit was set at CHF 500,000 (while our colleagues in Germany had theirs set at €100k, but, hey, this is Switzerland).

As of August 2022, we found 203 houses and 80 apartments following these criteria on sale.

Most of these definitely need some fixing up, but you can still snatch a home for under CHF 500,000 with lovely views of lakes and mountains or big terraces and gardens.

Going through the addresses with some of the properties, some things stand out:

Head for the border – most of the most affordable places are in Italian-speaking Switzerland. However, you can also find some of them in the French regions. In both cases, they are located very near the border with France or Italy.

Forget about cities – All the properties we found are quite far from the major cities of Zürich, Bern, and Geneva, which makes sense as the cost of living tends to rise in those regions. If you’re looking for a cheap home, you’re highly unlikely to find one in city centres.

READ ALSO: EXPLAINED: Why is Switzerland so expensive?

Consider property type – It is also worth mentioning that there seemed to be a distinction between the homes in the west and those in the south. In the French region, there are more apartments and newer properties, with some outstanding options.

While in the Italian south, most of the properties are houses – and you need to inspect well because some will need a lot of work.

Research services – You should definitely check carefully the property’s location – some are not connected to basic services or even roads.

Renovation costs – Almost all of the properties we found were ‘renovation projects’. Some can turn out to be very good investments, but it takes time and work to renovate. Before buying, get an estimate of the likely works so you can see whether the property really will save you money in the long term, and be honest about your level of DIY/building skills and how much work you are willing or able to do.

Extra costs – Besides renovating costs, you must be mindful of property taxes and other living costs and how much they are in the region where you are buying property. Prices can vary quite widely depending on the canton, so research well.

You can check all our Property in Switzerland stories here.

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