Cut in the segment of elite real estate in Switzerland

Cut in the segment of elite real estate in Switzerland

In recent years, it was fashionable to buy luxurious apartments in Switzerland in high rise apartment complexes with concierge service and Alps view. However, at present, with wide range of excellent elite real estate objects on the market, demand becomes more constraining.

During the construction number of developers has changed their plans about building most expensive and luxurious apartments on the top floor of the apartment complex, after predicting a decline in demand for elite real estate. "We clearly understand that segment of luxury real estate decreases," - said Christoph Caviezel, head of the construction company "Mobimo".

Matthias Meier, representative of "Allreal" company added: "We can’t speak about sharp decrease in demand, but the market promotion of expensive apartments became much more difficult".

Jean-Marc Schneider from the consulting company "Swiss Finance & Property" confirms that promotion of luxury apartments on the market takes now much more time than ever before. Developers that offer apartments in high-price segment should be ready for declining in profit margins.

According to Jean-Marc Schneider, the greatest demand is for elite objects costing 12 000 francs per sq.m., but for apartments from 2 500 000 francs, to find buyers become much harder than before. According to the analyst of real estate department in the "UBS" bank Claudio Saputelli, high demand for elite real estate grew in recent years with growing incomes. But sooner or later the demand in this price range comes to its end.