Uli Schnorf and Philipp Peter, owners of Wetag Consulting, talk about the main trends in the luxury real estate market, with a particular focus on the situation in Ticino.
- What are the typical elements of luxury real estate in the next few years?
- Two elements define the market: the players, the buyers and sellers, and the products, in this case luxury real estate. One could say that the number of buyers will increase because the number of rich people in the world is growing rapidly. Current statistics show that in 2018. 14% of high-income individuals around the world intend to buy property, and 12% intend to sell. By 2021 this ratio will change in favour of buyers. The luxury property market will be in short supply for the next few years. Prices will be determined by the sellers. This means that sales and purchases in luxury real estate will become increasingly complex, and will require a great deal more professionalism and expertise from those who wish to continue to operate successfully in this sector.
- What is the outlook for the market in southern Switzerland - the Ticino region?
- There is still potential for growth in the luxury property sector in Ticino. It is an attractive but small market. However, political decisions regarding taxes, permits, building regulations and infrastructure have been a major factor for change. We have not seen any political initiatives to improve the situation on the luxury real estate market. For example, in Ticino the opening of multilingual schools, which are essential for foreign clients, should be supported. Or the authorities do not have a clear development plan for Lugano Airport. The positive factors are the development of transport, both rail and road. Ticino's luxury market will develop by itself, as the advantages of the region are clear to foreign buyers.
- What are the main requirements of foreign clients interested in Ticino?
- In the past, villas and temporary residences were extremely popular. Magnificent examples can still be found on the banks of lakes in the Insubria. But now the interest of buyers is attracted by new, modern and functional properties, equipped with all the necessary technological systems for a comfortable life. As a result residences built in the 50s and 90s are more difficult to place on the market. Other factors that have a significant impact on the choice of residence are location, accessibility and proximity to services.
- The concept of status varies from region to region. What is important for buyers who are looking at properties in Ticino?
- It's a very interesting situation to analyse. Internationally, if we are looking for buyers from Asia or the Middle East, around 80% of requests concern resistances, conveying an image of monumentality and wealth, reflecting recently acquired wealth. With the US this share is already 50%. In Europe, only 36% of buyers consider a luxury property as a status symbol. In Switzerland and Ticino the numbers are even lower: 80% of buyers rather value the seclusion, the absolute quality which is not shown off but on the contrary is well hidden from the eyes of outsiders.
- The most important arguments are therefore security and protection of privacy. How does Switzerland, and specifically Ticino, fulfil these requirements?
- Those who decide to move to Ticino opt for the traditional advantages of the region. Above all, they are looking for stability in Switzerland's political, economic and financial system. The favourable Mediterranean climate and nature have sustained its appeal for decades. The low crime rate, general safety and an excellent medical care system are also extremely important. In other words, Ticino is still an ideal place to live.
- The villa at Carona - a harmony of beauty and serenity Uli Schnorf and Philippe Peter, owners of
Wetag Consulting Immobiliare SA
Tel: +41 (0) 91 601 04 40