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PROPERTY

How a cross-border train has pushed house prices up in Switzerland and France

A commuter rail link between Switzerland and France has caused property prices on both sides of the border to rise sharply.

Published: 3 June 2022 15:31 CEST
How a cross-border train has pushed house prices up in Switzerland and France
Private universities market their location near international institutions to attract students to Geneva. (Image by 495756 from Pixabay)

When the Léman Express (LEX) was inaugurated in December 2019, its main goal was to connect the Geneva region with neighbouring French towns and provide a quicker commute for cross-border workers.

Established by the Swiss (SBB) and French (SNCF) railway companies, LEX is Europe’s largest cross-border regional rail network.

Some of the approximately 92,000 employees from France commute to their jobs in the Lake Geneva region by car, while others prefer to take Léman Express, which was launched specifically to reduce journey times and cut traffic in and around Geneva.

But while this goal has been largely achieved – the train carries 52,000 passengers a day — the rail link is also causing rents and property prices in the vicinity of the train’s 45 stations to soar by 8 to 9 percent on average — a sharper increase than elsewhere in the region.  

Prices rose in the French departments of Haute-Savoie and Ain, as well as in Swiss cantons of Geneva and Vaud, all of which lie along Léman Express’ 230-km track, according to Tribune de Genève (TDG).

Screenshot Léman Express

Why has this happened ?

As a general rule, transport infrastructure influences real estate prices, according to Dragana Djurdjevic, statistician at Wüest Partner real estate consultants interviewed by TDG.

Increases vary based on the type of transport —such as trains, buses or trams — as well as the frequency and the distance of the property to the nearest stop.

Typically, prices / rents are the highest within 300 metres around a station.

In general, Swiss and French municipalities with a LEX station have recorded significantly higher rents and sale prices than areas that have no access to the train, Djurdjevic said.

Just how much have prices increased along the LEX line?

On  the Swiss side, rents rose by 4.9 percent along the track.  In Geneva itself (already the most expensive rental market) , they went up by 1.5 percent, and only slightly less (1.4 percent) in Vaud.

READ MORE: Why is Geneva’s rent the highest in Switzerland?

In terms of properties, prices along the network rose by 17.7 percent; in Geneva the increase is 12.3 percent, and 13 percent in Vaud.

In neighbouring France, rents increased by 6.1 percent along LEX stops. In Haute-Savoie, the increase is 6.3 percent and in Ain 9.1 percent.

Sale prices went up by 15.7 percent along the track, 14.8 percent in Haute-Savoie and 23.7 percent in Ain.

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RENTING

Will Swiss tenants get a respite from soaring rents?

Housing costs in Switzerland have increased in the first six months of 2024. Is there any easing in sight?

Published: 15 July 2024 14:34 CEST
Will Swiss tenants get a respite from soaring rents?

From January until June, rents in Switzerland rose by 2.6 percent on average nationally, with prices in some regions being higher than in others. 

This is what emerges from the Homegate Rent Index published on July 15th.

This study found that nearly all the cantons recorded rising rents as compared to the same period last year, particularly Schaffhausen (up 10.8 percent), Zug (8.9 percent), and Zurich (8.7) percent.

And according to Martin Waeber, managing director of real estate at SMG Swiss Marketplace Group, this upward trend will not be reversed anytime soon — on the contrary, it is expected to continue.

“A further increase seems likely in view of the foreseeable developments in the rental market,” he said.

One reason is that residential construction will stagnate in the coming months, exacerbating the already dire housing shortage, especially in big cities.

“As long as the imbalance between low supply and high demand is not resolved in the long term, people looking for accommodation will continue to be confronted with rising rents.” Waeber added.

However, at least some relief for tenants may come in the form of referendums.

Fight against rent increases 

On November 24th, Swiss people will vote on a measure passed by the parliament, which lightens the procedure for lease terminations by landlords.

Since property owners have the right to increase rents for new tenants, Swiss Tenants’ Association (ASLOCA) sees this move as a way to allow landlords to up the prices each time a new lease contract is signed.

In response, ASLOCA has launched a referendum against this move, urging voters to reject the proposed legislation and thus avoid having to pay higher rents.

And another ASLOCA vote is in the making too.

An initiative against excessive rent hikes

This particular ASLOCA initiative aims to ban landlords from increasing rents arbitrarily by basing the hikes on prices of similar dwellings in the community —an excuse that some property owners use to raise prices.

The initiative also provides for automatic and regular rent control, according to ASLOCA’s vice-president Michael Töngi.

Currently, while tenants have the right to dispute such rent increases, many are afraid to undertake these procedures and get involved in litigation, Töngi said.

A new law (if approved by voters) would therefore ban this practice.

The date for this vote has not yet been set.

READ ALSO: How do you know if your Swiss rent is too high — and how can you challenge it? 

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