Switzerland: A Strategic Safe Haven for the Super Rich

Given growing geopolitical uncertainties, private buyers and real estate investors are more cautious than ever about how and where they deploy their capital in Europe. For many centi-millionaires, this means targeting locations that offer liquidity, security, and stability even in turbulent times. A strong and forward-looking economy is driven by entrepreneurial personalities who develop existing business models with innovation and a willingness to invest. According to the Global Innovation Index 2023, Switzerland has been the country with the highest innovation power worldwide for six consecutive years. The high quality of life, excellent infrastructure, political stability, competitive tax policies, and the Swiss Residence Program for financially independent individuals have made Swiss cities highly attractive to national and international ultra-high-net-worth individuals for decades.

In recent years, Switzerland has also emerged as a pioneer in the Lifestyle of Health and Sustainability (LOHAS) movement, setting global standards for sustainability with its commitment to eco-friendly living, innovative green technologies, and a culture deeply rooted in environmental stewardship. As a result, more and more centi-millionaires are choosing Switzerland for their primary residences across generations. Primary residence markets such as Zurich, Geneva, and Zug, and secondary residence markets such as Gstaad and St. Moritz are particularly in demand. But what developments are currently taking place in these locations, and what opportunities are emerging in the real estate market?

Swiss estates as a stability factor in the portfolio

Whether it’s a modern penthouse in the city or exclusive apartments on a hillside with lake and mountain views, individual priorities and life circumstances influence the choice of residence and the type of property that best fits the desired lifestyle. The decision to rent or buy largely depends on financing options and the amount of equity available. Due to the strict lending practices of Swiss banks since the interest rate turnaround, acquiring property has become increasingly challenging for many prospective buyers. As a result, many potential buyers are currently turning to the rental market. This market development plays into the hands of capital investors. Those looking to ensure a continuous cash flow from rental income benefit from the value stability of real estate. A new tenant segment has emerged, which is particularly appealing to premium landlords: those who would like to buy property but opt for a rental due to financing costs. These so-called premium tenants generally have a higher budget for rent.

For investors, rental properties become more attractive due to the achievable returns. Besides new construction properties in high-quality locations, renovated existing properties with relatively low purchase prices in potential areas are of particular interest. In Zurich, the Zimmerberg region offers many opportunities in municipalities such as Kilchberg, Rüschlikon, Thalwil, and Horgen. As a hub with many international organizations and due to its proximity to France, Geneva boasts a high new construction rate with achievable top rents. Due to favorable tax conditions for the financial and technology sectors, Zug continues to attract many rental-friendly expats with discerning housing standards. Those with business acumen and intuition for emerging locations can seize market opportunities here. The real skill lies in discovering such potential and getting in early with off-plan properties.

Prime properties at connoisseur prices

While singles or couples without children usually choose their residence in urban centers, families with children often move to the suburbs due to space requirements. Many centi-millionaires find their happiness in secluded properties that combine architectural finesse with privacy in a serene natural setting. Prestigious resorts such as Gstaad and St. Moritz, which attract international society with a year-round sports and leisure offering and high-caliber cultural and sports events, impress with an extremely limited high-end real estate market. Luxury properties with alpine allure are typically owned by multiple generations and rarely come on the market. The marketing period is only a few days, and properties are marketed discreetly.

Among ultra-high-net-worth from Europe, the Middle East, Asia, and the USA, traditional chalets are at the top of the favorites list. Strict building regulations of the cantons and the increasing sensitivity to environmental issues influence the architecture of such properties. New constructions increasingly use sustainable building materials, energy-efficient technologies, and environmentally friendly concepts. Accompanying the societal trend towards the LOHAS and rapidly advancing initiatives in the longevity sector, alpine chalets in idyllic mountain settings will maintain their status as eternal investment favorites and continue to rise in value.

Stable development outlook for forward-looking investments

With its open economic policy and numerous free trade agreements with international partner countries, Switzerland offers competitive conditions for established industries such as medicine and pharmaceuticals, as well as for innovative research centers and start-ups leading in areas such as artificial intelligence, blockchain, and biotechnology. Supported by an excellent education system with elite universities, a leading financial system with a strong currency, and a stable real estate market, Switzerland provides ideal living and investment opportunities for centi-millionaires.