Read news from:
Austria
SHARE
COPY LINK
For members

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.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

PROPERTY

Why renters in Switzerland still struggle to buy an apartment

Prices of properties in Switzerland are out of reach of most residents and they may continue to be so in the near future.

Published: 12 April 2024 10:47 CEST
Why renters in Switzerland still struggle to buy an apartment

It is a well known fact that more people in Switzerland are tenants than homeowners, and it all comes down to money. 

This is confirmed by yer another study, by UBS bank, which found that fewer and fewer households can still afford to buy a house or apartment. 

While 20 years ago, 60 percent of households in Switzerland could still afford to purchase property, today the percentage of residents owning property valued at 880,000 francs or more dropped to merely 15 percent.

READ ALSO: Why do so many in Switzerland rent rather than buy a home

In order to afford cheaper properties, people have been moving from cities to the suburbs, where homes had typically been less expensive, but the growing demand in those regions has increased the prices there as well.

And short-term outlook is not favourable either: UBS experts expect the prices of apartments to increase by another 1.5 percent this year, and 1 percent for single-family houses.

This may not seem like much, but if a property costs 1 million francs or more (a usual price in major cities), the 1 or 1.5 percent adds up to a lot of money.

Why are properties getting more expensive in Switzerland?

There are number of reasons for this phenomenon, including scarcity of land for new constructions, the steadily high demand, and inflation, among other reasons.

How much do you need to earn to afford a property these days?

READ ALSO: Can foreign nationals in Switzerland get a mortgage? 

As prices vary from one region, and even from one town to another, the income you’d need depends on where you live.

In Geneva or Zurich areas, for instance, where housing is notoriously expensive, a household would need a gross income of 300,000 francs a year to buy a home or an apartment, though in traditionally cheaper regions like Jura, Neuchâtel, Ticino, or some areas of central Switzerland, an annual salary of between 100,000 and 200,000 francs may suffice.

What is the forecast for residential properties the future?

READ ALSO: Why living in Switzerland’s smaller towns beats the bigger cities

More price increases are expected from 2025.

This hike would be driven by the economic recovery as well as the general housing shortage.

UBS pointed out that as long as there are enough potential buyers, prices will continue to rise.

And it is a fact that the demand for houses and apartments is still there, despite the cost.

On the one hand, that is because an increasing number of wealthy people from abroad are settling in Switzerland. 

And on the other, because the income of people belonging to the upper class has increased.

READ ALSO: Where in Switzerland property prices are rising the fastest

SHOW COMMENTS