High Net Worth executives relocating to Switzerland for work or leisure should look carefully into the property markets.
Presently the Geneva and Vaud regions are considerably oversold and overbuilt, as are several regions of the Valais (Gstaad, Verbier, Crans Montana …) while Ticino remains both charmingly preserved and still full of good values.
Stretched between the Swiss Alps and the lake, the erst fishing village of Ascona, in the Canton Ticino, encapsulates the old European charm that makes Switzerland so attractive to property buyers from around the world. It is one of the Swiss towns where it is easiest for foreigners to buy a second home.
Many wealthy expatriates or executives in upper management choose to make their domicilie in the canton of Zug or Schwyz for tax reasons. But when they purchase another residence, it is often in Ticino.
The Swiss are currently worrying, understandably, about their country’s becoming a weekend-home destination full of empty houses. The population of Switzerland is barely 7.5 million. Both federal legislation and the laws of the individual cantons and villages limit the number of properties available for purchase to non-residents, though the limitations are now reduced for EU citizens.
Cantons such as Zurich or Zug in the northern German-speaking provinces tend to be the most restrictive. In Spring 2007, however, the canton of Valais—which has been a longtime favorite with foreign buyers—erected a moratorium on new building permits the most sought-after areas, including Verbier, to cope with the demand. (All properties that have a permit already and meet resale requirements can be sold to a foreigner, because the permit remains with the property –only a deed transfer is necessary.)
Other cantons have a more liberal attitude towards foreign property purchase, such as Ticino (Italian-speaking). Ticino has the same rules as the Valais or Vaud : foreigners can buy up to 250 m2 of living space, in a plot of land of up to 1,500 m2. The key difference is that there are no resale restrictions. Ticino is also said to be more liberal about granting residency permits to foreigners. Ticino has several trendy destinations, medieval legacies of fortified walls and crenellated towers, and the region has, increasingly, discreet, celebrity residents, such as George Clooney, who purchased a house on lake Como.
The area around Lake Maggiore probably has the best weather in Switzerland, with an average of 2,300 hours of sun per year and excellent cuisine. Ticino has very good restaurants, hotels, and cultural events. The green of the various golf courses between Ascona and Locarno is an attraction for the outdoor types. The region around the Centovalli attracts those seeking long summer walks by old stone churches, mountain huts and ancient Roman bridges. A century ago artists and philosophers from Germany and Russia immigrated to the region to adopt lifestyles based on self-sufficiency, heliotherapy, the arts and vegetarianism.
These days the Russians are back, vying with Italians for second homes along Lake Lugano. Lugano is wealthy – of the subtle, old-fashioned kind that the English adore. The wealth in Lugano shows in the elegant forms of the bronze statues lining the water, in the palazzos on the opposite side of the lakeside promenade, with its discreet banks, auctioneers, and posh boutiques selling jewelry and antique watches. Along with Lake Maggiore, Lugano is the luxury hotspot of Ticino. Unsurprisingly, property prices in Lugano are starting to reflect this.
One will rarely find a penthouse for less than CHF 3 million. Luxury villas with ample grounds and gardens cost (2,000-3,000 m2 grounds / 600 - 1,000 m2 living space) between CHF 8 million - 10 million. Houses can sell for CHF 15-20 million.
When you buy in Switzerland, you buy a piece of lifestyle. And Ticino is one of the ideal Swiss locales for sipping wine and enjoying life. That said, non-Swiss residents can only buy a home of up to 200 m2 net living space, set in up to 1,000 m2 of grounds. Without a residence permit, however, the buyer has a range of beautiful apartments available for sale, sometimes situated in period lakeside buildings.
