The crisis of the 2019 coronavirus infection (COVID-19) had an impact on the Swiss real estate market over the preceding year since emergency law declared several real estates uses illegal. Before, historically low borrowing rates aided in keeping real estate acquisitions appealing to investors. This effect lasted quite a while. As a result of this, several transactions occurred, some of which were large. The loan-to-value percentages at Swiss banks remained unchanged, and they attempted to enhance their margins again in contrast to the previous position. This is due to the Swiss National Bank’s decision to maintain the initially implemented negative interest rates. Some investors have turned their focus away from residential real estate and toward commercial construction projects or untapped prospective real estate, such as vacant buildings.
In addition, a few fresh realty investment funds have recently been introduced, and a successful online investment forum for the acquisition of co-ownership units has been developed.
Business centers or coworking spaces are frequently the starting point for companies wishing to expand or relocate to Switzerland. They gradually develop into their headquarters from there. Some people start by buying right away, while others even start by creating their websites.
Types of commercial realty
Real estate used for business purposes as opposed to habitation is known as commercial real estate.
Office space
Today, a growing number of businesses are establishing offices in coworking spaces and business centers. This is useful for businesses that are just getting started somewhere new. The benefits:
- Several coworking spaces and business centers have a thriving community that helps people settle in.
- Flexibility promotes business expansion
- Businesses can expand without worrying about coffee beans, printing paper, or cleaning
Typically, business centers and coworking spaces take care of everything needed to make tenants’ jobs easier. A company typically starts looking for its own office space as soon as it grows.
Laboratories
Research and medication development are conducted in chemistry and biology labs. Strict standards and codes must be followed in lab spaces. It must be constructed safely and receive authorization to operate from the Swiss government. Find out more about Swiss lab rentals.
Industrial use
Factory and logistical facilities are included under industrial use. All of them are locations where workers produce, assemble, research, or distribute items.
Retail
All properties that enable tenants to conduct on-site sales of goods and services to customers are considered commercial realty in the context of retail. That includes physical stores, warehouses, malls, and factory outlets.
Who can purchase realty in Switzerland
In Switzerland, anyone can purchase commercial realty. If you don’t have Swiss citizenship, you can still purchase property for business purposes. No special authorization is required. There is one exception: foreigners cannot purchase rental properties.
What is the cost of realty in Switzerland
Switzerland is renowned for having a high standard of living. Because of this, it is a sought-after place to live and conduct business, which drives up realty costs. One square meter can cost up to CHF 3,300 in downtown Basel, over CHF 5,000 in a recently created estate in Basel-Landschaft, or as little as CHF 1,750 in Delémont in the Jura canton.
The costs and taxes you incur when purchasing realty vary by canton and municipality.
Where do I find commercial realty for sale
You have access to a variety of platforms as well as agencies. Download our commercial property fact sheet to have a better understanding of the local real estate market. It profiles the most successful brokers, developers, and internet reality platforms, as well as provides useful statistics about the commercial real estate sector.
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