The prices for new properties did not rise significantly compared to the previous fiscal years, banks remaining overly cautious about mortgages although rates are low.
More than hundred new projects saw the light of day in 2018. They range from human-sized adjacent villas or buildings constructed in zone 5 to big projects in Bernex, Plan-les-Ouates or Thônex, which will provide thousands of new housings for sell or rent.
A few factors explain the current commercial dynamism:
The central banks low rates policy promotes investment. It is however not going to last as it drives more and more people to liability.
Buying a planned property allow purchasers to think their future housing according to their needs.
Geneva remains the tenser market in our country in terms of housing access, despite some improvements since 2015.
The « Casatax » incentive mechanism allows cutting in half the registration rights for a property worth less than CHF 1’173’000. It consitutes a great motive to buy. The properties under this price threshold are always the first to be purchased.
The EPP housings in LGZD with first prices around CHF 6500 per sq. m. are also an excellent incentive allowing the middle class to access property. These types of housings are too scarce in the general market thus their fast paced commercialization.
The barriers to entry and the market’s lack of attractiveness for newcomers still nuance the commercial successes.
Banks expectations about mortgages show a mismatch between rent’s prices and the interest rates. Monthly payments are always more advantageous than rent to own a property. Own funds are still of great importance to people looking to purchase.
Today the majority of demand is priced between CHF 1’600’000 and CHF 1’800’000 for adjacent villas. Above these prices, the demand is much lower. Therefore the promotors make sure that the costs stay between these intervals.
In terms of localisation, the left Bank remains the preferred area for new buyers with prices that range between CHF 11’000’000 and CHF 12’000’000 close to the Geneva’s Lake. The prices decrease to around CHF 8’500 and CHF 9’000 per sq. m. in border towns like Lancy, Bernex, Vernier, Meyrin, an observation confirmed by our recent project “les Résidences du Parc” in Lancy.
At last, the exile of Geneva’s population is an actual issue. Looking for better pricing and a larger offering more than 20’000 people have left Geneva to live in Vaud or neighboring France
Pilet & Renaud Transactions, major player in the field for years, marketed successfully many projects in 2018. “Les Hauts de Vandoeuvres” 9 luxurious apartments near Geneva’s Golf Club quickly found their acquerors.
The 38 apartments of the “Résidence du Parc” in Lancy have been sold in less than 6 months. Their location near the CEVA train station « Lancy-Point-Rouge » in an area active in real estate development must have played a great deal in these acquisitions.
Two of the 14 avalaible lots of the “Crêts de Pregny”, modern buildings designed with the wellness of their inhabitants in mind, are still up for sale.
New projects are coming by Spring 2019 as Pilet & Renaud Transactions remains an essential actor in real estate development and first and foremost your best partner to acquire or sell properties in Geneva.
