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JANUARY 2016

MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices.

SWITZERLAND PROPERTY

Current trends in the rental market, expatriate neighbourhoods and property legislation in .

This issue of Switzerland Market focuses on and , discussing current rental trends and popular expatriate neighbourhoods in both , as well as key legislative issues.

GENEVA RENTAL MARKET Geneva Céligny Geneva is located in the south-western most area of Switzerland. The rental market there has not seen any significant changes CANTON for several years. Rental rates remain high compared to world DE standards and demand continues to outstrip supply. At Cartus, La in the last six months especially, we have experienced a

Versoix relatively unchanged market. Le Lêman (Genfersee) Anières In % Vacancy Rates for Gy Bellevue Collonge- Bellerive Pregny- Cham- Le Grand- bésy Jussy Sacoonex

L’Allondon Vandœuvres Vernier Genève

Chêne- Le Rhône Chêne- Bougeries Bourg L’ Aire-la-Ville Onex Thônex

Bernex

Confignon L’Aire Plan-les-Ouates Lacconnex Perly- Certoux La Laire

0 1 2 3 4 5 Km

of properties available, the market is not as competitive as it was two or three years ago, which means rental rates are becoming Source : OCSTAT more negotiable.

In the Canton of Vaud there has been more construction of new Vacancy Rates buildings and as it is a larger region than Geneva, it has more Despite an increase in new builds in the Canton of Vaud and properties available. Since there is more availability in the Canton an ability to negotiate rents in Geneva, the market remains of Vaud, it is much easier to negotiate the rental amount. challenging, with high levels of demand. Geneva vacancy rates - the length of time between rental property tenancies – have Tenant Preferences actually increased slightly year on year, but remain well below One noticeable trend that we have seen is a shift in tenant levels seen prior to 2001. Currently at 0.4% in Geneva and 0.7% preference, especially amongst the expatriate population, who in the Canton of Vaud, rates are very low compared with other appear to be placing far greater emphasis on the price and European markets. According to the Swiss Federal Statistics value of a property. Some expatriate housing budgets have Office, the average vacancy rate across Switzerland is 1.19%. also declined, which has resulted in certain properties being The highest vacancy rates have been recorded in the Cantons overlooked and remaining on the market for a typically longer of Jura, , Glaris and the , with the Cantons of period. Despite prospective tenants outnumbering the number Geneva, and recording the lowest.

CARTUS | MARKET WATCH: SWISS / JANUARY 2016 | PAGE 1 OF 3 JANUARY 2016

MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices.

SWITZERLAND PROPERTY

Property-types ZÜRICH RENTAL MARKET One and two bedroom apartments are popular, although it is Located in the north-centre of Switzerland, Zürich is the country’s easier to find a furnished one and two bedroom apartment than largest and as such, sourcing rental accommodation remains a larger furnished one. Indeed, availability of larger apartments challenging. However, in the last 12 months, tenant demand in (three bedrooms or more) is higher for unfurnished options. For the Zürich rental market has eased, with vacancy rates increasing. those looking for houses (semi-detached and detached), smaller As such, average rental rates have also decreased in the past properties, with one and two bedrooms, are in short supply, whilst year and the market is not as competitive as it once was. houses with three or more bedrooms are higher in availability. Property-types Rental Rates One bedroom apartments are low in availability, for both The following table provides average monthly rental rates for furnished and unfurnished options. All other apartment-types, apartments and houses*: including two, three and four bedrooms are more readily available. For those looking for houses, larger ones (three or Bedroom Apartment Houses more bedrooms) are higher in availability when compared 1 CHF 2,000 Not available to one and two bedroom houses. This applies for all types 2 CHF 2,500 Not available including terrace, semi-detached and detached. 3 CHF 3,200 CHF 4,500 Rental Rates 4 CHF 4,200 CHF 5,000 The following table provides average monthly rental rates for *Correct at time of publication apartments and houses*:

Expatriate Neighbourhoods: Geneva Bedroom Apartment Houses Geneva is divided by the Rhône River; accordingly the Unfurnished Furnished Unfurnished Furnished population live on either the ‘left’ or ‘right’ bank. The right bank 1 CHF 1,500 CHF 2,200 Not available Not available typically houses international organisations. Also in this area 2 CHF 1,700 CHF 2,500 CHF 2,300 CHF 2,700 are major transport links (railway station and airport), hotels 3 CHF 2,200 CHF 3,000 CHF 2,800 CHF 3,300 and international schools, including the International School of Geneva’s Nations Campus. Due to its amenities, the right bank 4 CHF 2,800 CHF 3,500 CHF 3,500 CHF 4,000 is popular amongst relocating employees. *Correct at time of publication

Please find below a list of the most popular expatriate Expatriate Neighbourhoods: Zürich neighbourhoods in Geneva: The municipality of Zürich is divided into 12 districts, each containing (on average) between one and four neighbourhoods. Name of Typical Residents eg Typical Property Types Below is a list of the most popular expatriate neighbourhoods Neighbourhood Family, Couples, Singles across Zürich: Eaux-Vives Single/Couple Apartment

Carouge Single/Couple Apartment Name of Typical residents eg Typical property types Plainpalais Single/Couple Apartment neighbourhood family, couples, singles Couple/Family Apartment District 3 Singles, Couples Apartment Petit-Saconnex Couple/Family Apartment and House District 4 Single, Couples Apartment District 6 Single, Couples, Families Apartment Average monthly rental rates in Eaux-Vives, Carouge and District 8 Families Apartment and Houses Plainpalais start from approximately CHF 2,000 and these are Rüschlikon Families Houses located in the centre of Geneva. Another central neighbourhood is Champel, which has slightly more expensive properties, In terms of price, average monthly rental rates in Districts 3 are starting from CHF 2,500 per month. Petit-Saconnex rentals start between CHF 1,500 and CHF 3,000. District 4 is CHF 2,500 and at CHF 3,000. CHF 3,500. Properties in Districts 6 and 8 are more expensive, typically between CHF 3,000 and CHF 4,000. The area of Rüschlikon is at the higher end of the market, with properties valued between CHF 4,000 and CHF 8,000.

CARTUS | MARKET WATCH: SWISS / JANUARY 2016 | PAGE 2 OF 3 JANUARY 2016

MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices.

SWITZERLAND PROPERTY

IMMIGRATION B and L Permit Holders. In early 2015, the Swiss government reduced annual quotas for nationals from non-European Union (EU) countries, non-European Free Association (EFTA) countries and Croatia, who are applying for B and L Permits. Quotas only apply to first-time applicants and assignees converting an L Permit to a B Permit, which means those renewing work permits are exempt.

B Permits are Initial Residence Permits granted to individuals with an employment contract of one year or more. Applicants cannot change jobs under this permit-type. L Permits are Short Term Residence Permits granted to individuals with an employment contract of one year or less and can be renewed if necessary.

Those on a local contract should consider suspending their work permit if they have to leave Switzerland for a period of time. That way, when returning, the individual is given back their original permit, which then does not impact the current quota.

Non-local Work Contracts. Quotas were also reduced in early 2015, for applicants from EU/EFTA countries relocating to WHAT WE DO Switzerland on a non-local work contract. The quota for EU/ EFTA nationals on assignment is released on a quarterly basis As an important part of our Destination Services support, our and it is expected that caps will be reached before the end of in-house immigration specialist in the Cartus Geneva office is each quarter. This may result in delays in application process on hand to provide help and guidance. For those searching times, until the next quarter’s cap is released. for a property, Cartus establishes and maintains relationships with the key real estate agents across Switzerland. Such long Organisations and their EU assignee nationals, on a non-local term relationships are important to ensure that relocating work contract, who are applying for work permits, should be employees have access to all available properties. To help mindful that these reduced annual quotas mean applications meet requirements, we act as intermediary between the real may be rejected. We recommend organisations begin planning estate agent and the prospective tenant. We recommend that assignments to Switzerland as early as possible to allow for all relocating employees keep in regular contact with their Cartus work permit possibilities to be reviewed. representative throughout their period of relocation.

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©2016 Cartus Sàrl. All Rights Reserved. Sources: Office Cantonal de la Statistique (OCSTAT); Acacias Office for Economy and Labour Canton of Zürich; www.awa.zh.ch; and Swiss Federal Statistics Office The information in this publication is provided in good faith based on information currently available and is therefore subject to change. However it is not intended to provide specific advice or guidance or take the place of either written law or regulations. Cartus accepts no liability for the accuracy, completeness or usefulness of the data and information contained herein or for any loss or damage arising in contract, tort or otherwise in reliance of the data contained or omitted from this publication or from any action or decision taken as a result.

CARTUS | MARKET WATCH: SWISS / JANUARY 2016 | PAGE 3 OF 3