Where? (Location)
Monday, April 10th, 2017

Ticino: the current state of its luxury real estate sector

Opening of AlpTransit

In this article Ueli Schnorf, CEO of Wetag Consulting, analyses the current state of Ticino’s luxury real estate market, a region with great pull and potential on a national and international level. He will also cover the consequences of opening the AlpTransit base tunnels.

The properties that one usually finds in Ticino’s luxury property sector, tend to be high end, those with a value of between 1-3 million Swiss francs spark the interest of local buyers that live and work in the canton itself, whereas more exclusive properties valuing at 3 million euros upwards are usually acquired by buyers from the German areas of Switzerland or abroad. Furthermore, there is an even more exclusive market if we take into account, the properties that are priced at 10 million Swiss francs, such as designer penthouses with lake views in excellent locations or large homes with modern facilities, luxury finishes and extras such as pools, spa areas, cinema rooms and wine cellars.

Philipp Peter (right) and Ueli Schnorf (left)

Philipp Peter (right) and Ueli Schnorf (left).

If we focus on the second-home market, we can see that it has stagnated in recent years, provoking a drop in luxury property sales and a significant decline in prices, specifically 10%. However, this is not a trend unique to the canton of Ticino, but one that extends throughout all of Switzerland’s exclusive real estate market, with the areas of Lake Zurich, Lake Geneva, Ascona and Lugano being the areas most affected.

Ticino's real-estate market

It is important to bear in mind that buyers of these types of properties are more shrewd and pay more attention to the value of the property, especially if they are a foreign buyer that has been affected by the crisis before. If offered an exorbitant price, they are more likely not to buy due to the possibility of losing the investment potential of the property if they decide to sell it in the future.

Luxury properties in Ticino

Saying this, forecasts for the Ticino real estate market are quite good. Like before, thanks to important connection improvements like the construction of the motorway between Zurich and Zug, the completion of AlpTransit and the railway network that will link the north to the south via the Swiss Alps, one expects that these will have a positive impact in this sector.

Luxury real estate market in Ticino

The opening of the Gothard Base Tunnel will notably reduce the time it takes to get to Ticino from the rest of the cantons, as well as Germany, minimising also the traffic jams that would occur en route to the Gothard Base Tunnel. Additionally the opening of the Monte Ceneri mountain pass will improve Ticino’s connections to Italy and will make trips around the canton much quicker.

It’s logical to think that thanks to this potential increase in footfall and Ticino’s improved accessibility, provided by the transport improvements, combined with the region’s traditional pulls such as its economic, legal and political stability, its excellent health and education systems, the climate and the gorgeous natural environment that more people will be interested in moving there, thus increasing the amount of properties sold.


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