One square meter of luxury here costs more than 50,000 francs.

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There’s no stopping them: Buyers of luxury apartments are handing over larger and larger sums. 7.5 million francs can be easily paid for an apartment of 150 square meters. st. Moritz GR, Cologny GE, Verbier VS, Küsnacht ZH or Zurich for more than 50,000 francs per square meter of luxury apartments. UBS examined the current price evolution for luxury real estate in a study.

Central Switzerland is the leader. Prices there rose 14 percent last year, according to the big bank. And the best spots on Lake Zurich also became 9 percent more expensive. This made the region the only region with a higher price increase compared to the previous year. According to UBS, the price rally may now end.

St Moritz on top

Luxury real estate grew more than 8 percent in each of the two pandemic years, 2020 and 2021. Last year, that growth has halved and even fallen below overall market growth. This trend continues. Price increases have slowed further in recent months. Prices are falling again in the Upper Engadin.

However, St. Moritz is still in the first place: on average, a one-square-meter luxury apartment costs more than 42,000 francs. Cologny and Verbier VS are second and third with prices exceeding 35,000 francs per square metre.

More and more multimillionaires

There is a simple reason for the huge price increases for luxury apartments in recent years: millionaires in Switzerland are making more and more money. In recent years, their income has grown significantly faster than that of the average citizen. According to UBS estimates, the number of people with assets of more than 10 million francs increased by eight percent per year between 2011 and 2021.

The wealthy are less reliant on low interest rates when making purchases, as they, on average, use less loans for their properties. However, further price corrections are likely, according to UBS. Also, in the turbulent stock market year of 2022, many rich have lost their fortunes and the demand for luxury real estate is falling accordingly. In addition, potential buyers will increasingly question price increases in recent years. Therefore, UBS expects prices in the upper segment to fall in the low single-digit percentage range across Switzerland in 2023.

Source :Blick