A typical Ticino street.

 

The Knight Frank Global House Price Index established in 2006 is the definitive means for investors and developers to monitor and compare the performance of mainstream residential markets across the world. The index is compiled on a quarterly basis using official government statistics or central bank data where available.

 

 

Helicopters transport building materials on a rope to places that cannot be reached by truck.

Step 1 - Allocate Budget

An interesting fact is that the majority of Swiss residents are actually tenants and do not own their own home. The high cost of residential property is mainly causing this.

In comparison with other countries it becomes clear how expensive real estate is in Switzerland. A detached house typically costs in excess of 8 times the average household income. The investment is however secure even in times of economic uncertainty:

In order to buy real estate in Switzerland you will need a substantial amount of cash (between 30 and 50%) of the value of the property. It is also no secret that buying a property typically always costs more than you thought it was going to cost. As a result it will be a very worthwhile exercise to calculate the amount of cash you have available and at the same time predict which monthly costs you can afford.

Finally some words of wisdom from Cor van Zadelhoff, a Dutchman who founded the Zadelhoff Makelaars real-estate company back in 1968. Real estate is ultimately bricks and mortar, the key questions one has to ask oneself when buying are always the same: are the quality and location of the building sound? is it worth the money?

For those interested: there are also technical reasons why construction in Switzerland and particularly in a montainous environment is more costly than elsewhere:

  1. The building site preparations are typically very costly and involve removing parts of the mountain to create a flat building site (see underneath picture for details).
  2. Because of the narrow roads in the mountains, transportation of building materials with big trucks is not possible. Therefore smaller trucks as well as helicopters are used for this purpose.
  3. Construction occurs in a very environmental friendly way which obviously adds cost.