The luxury real estate market in Switzerland is still stable

They are on Lake Geneva, in Lugano or Lucerne: magnificent villas with palm trees and oleanders in the front gardens, with a view of the water and hundreds of square meters of living space. Rich people have been drawn to Switzerland for years – and despite the challenging environment, business is flourishing. The Swiss have made a name for themselves through solvent banks, self-evident discretion and attractive tax policies, and the demand for luxury real estate is correspondingly high.

While some European countries are currently groaning under inflation of more than ten percent, the country lives up to its reputation as a stable and secure state: in Switzerland, the inflation rate is comparatively low at 3.5 percent.

Nevertheless, the Swiss National Bank (SNB) raised the key interest rate surprisingly early, in June 2022 – and thus before the European Central Bank (ECB). The key interest rate is currently 0.75 percent after the first increase in seven years, and the SNB is not ruling out further increases.