Buying real estate in Zurich

Homeownership in Switzerland

Most people in Switzerland are renting their current residence. To give you a clear idea, with only 37.4% in 2016, Switzerland has one of the lowest homeownership rates in the world. A large number of people who own their residence live in the countryside instead of in cities. Moreover, older people (retirees) also have a higher homeownership rate than younger people (people of working age). A number of explanations contribute to the low homeownership rate, with real estate prices and cultural perception of owning a home being the top reasons.

Can foreigners buy real estate in Zurich?

Just as Swiss rules in the labour market, buying real estate as a foreigner is almost as restricting. In fact, foreigners can only buy real estate in Switzerland if they possess a C permit, or they are an EU or EFTA national who resides in Switzerland with a valid residence permit. If you are a B permit holder, you may still buy a property, but only for you to live in. All other people falling out of these categories, such as diplomatic staff holding a special permit, may only purchase real estate if they apply for a license.

Purchasing real estate in Zurich

If you would like to purchase real estate in Zurich, the first thing is, of course, to look for offers. Basically, all property search websites allow you to also search for properties for sale. You may refer to the other article about finding accommodation in Zurich for useful resources.

In July 2019, the median price to purchase a property in the city of Zurich was 1,428,750 CHF. If you are looking for a 3 to 3.5 room apartment in Zurich, you could be paying 1,340,000 CHF on average. Of course, the actual price varies depending on the district you wish to purchase the property, the size of the house or apartment and the year of construction. However, do expect to pay above-average prices to buy real estate in Zurich in comparison to the rest of Switzerland.

Some popular areas to purchase family homes and real estate include Zollikon-Meilen, Männedorf, Stäfa, Pfäffikon and Oerlikon. A lot of people who don't mind commuting would also look at properties a bit farther away from Zurich city, for example in the canton of Zug, where taxes are lower.

Pricing trend of real estate in Zurich

Despite the high price of houses and apartments in the city, from an investor's point of view, you will be glad to hear that the housing prices have been rising in general. In fact, properties in Zurich have almost doubled their prices since 2007 according to a report.

How to proceed?

If you have locked your eyes on a property in Zurich and would like to purchase it, you could start the long process of becoming a homeowner. Regarding making an offer, you may wish to ask for a professional survey to be done to examine potential problems in the property. This is not often seen positively but could help you avoid big troubles once you have purchased the property. Once you are sure of your choice, you could then proceed to ask for a mortgage from your bank.

In general, you would need to make a 20% minimum down payment, with at least 10% in cash. When this is taken care of, and you know of the amount of mortgage that you can get for your property, you can then make an offer. Usually, if you find a property through an agency, you will have to negotiate with the agent, who acts as a middleman between you and the seller. Such service will, of course, incur costs.

Once you agree on the price, you will need to confirm the amount with your bank and complete the remaining paperwork for your mortgage. The purchase process will be handled by a notary, who will manage the contract drafting, register the change of ownership and ensure that all necessary legal requirements are fulfilled. Fees to be paid to notary vary, but generally, it costs around 5% of the purchasing price of your property. Your notary will help you complete the purchase and become a homeowner.