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Zurich property prices have almost doubled since 2007

A new report shows the increase in the cost of buying apartments in Switzerland over the last 11 years, with the country’s largest city affected by the largest increases.

Published: 16 October 2018 10:50 CEST
Zurich property prices have almost doubled since 2007
Zurich's old town at night. Photo credit: FABRICE COFFRINI / AFP

The price comparison firm Comparis and ETH Zurich have released a report showing the difference in Swiss property prices compared to 2007. In Zurich, it now costs almost double (a 97% increase) to buy an apartment, with the price per square metre now setting property owners back an average of 13,000 Swiss francs.

The analysis shows that there has been a lot of variation between different parts of Switzerland, but the areas with the biggest spikes tended to be near to lakes. Nine of the ten largest increases were seen in lake regions.

After Zurich, the biggest changes were experienced by Horgen district (+89%), the canton of Nidwalden (+82%) and the city of Neuchatel (+80%). The only place where prices fell was the district of Goms in Canton Valais, southern Switzerland (-2%).

The report also shows the difference in overall prices between different parts of Switzerland. At the other end of the spectrum from Zurich is Le Locle in Canton Neuchatel, where one square metre costs an average of 3,250 francs.

Over the last 12 months, the rate of increase has slowed, with several districts and municipalities recording lower prices than one year ago. It is unclear whether this deceleration will represent a long-term trend.

 

ZURICH

Zurich homeowners to pay significantly higher property taxes

Properties are more expensive in Zurich than almost anywhere else in Switzerland, but a planned new charge will place further financial burdens on the canton’s homeowners.

Published: 18 September 2024 10:50 CEST
Zurich homeowners to pay significantly higher property taxes

Because Zurich is re-evaluating all properties, homeowners will have to brace themselves for significantly higher tax bills from 2027, cantonal authorities announced onTuesday. 

This step was triggered by two court rulings, according to which many properties in the canton were undervalued. The last estimate took place in 2009, but real estate prices have soared by an estimated 50 percent since then.

Therefore, property tax values are to increase by an average of 48 percent, while  imputed rental values for single-family homes will rise by an average of 11 percent and for apartments by 10 percent.

With this measure, the canton and municipalities can expect additional income of 85 million each.

What is the imputed rental value?

It is a tax term used to describe the theoretical rental value that you would have to pay if you were renting your own property.

In Switzerland, this value is used to calculate taxes, even if you live in your own apartment or house and do not pay rent.

For owner-occupied apartments in the canton of Zurich, the imputed rental value is 4.25 percent of the tax value. For single-family homes, it is 3.5 percent.

Authorities get ready for more ‘hardship’ cases

As a result of this tax hike, a larger number of hardship cases — that is, people who won’t be able to afford higher property taxes — the cantonal government is calling for the introduction of a ‘hardship regulation.’

Under this measure, a tax charge on the imputed rental value should be anchored in the law if it leads to an excessive tax burden in relation to the household income and assets.

The current cantonal hardship regulation serves as a transitional solution, which is in effect until legal basis is enacted at a federal level.

READ ALSO: How fast are property prices rising in Zurich in 2024? 

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