The real estate market in Eastern Switzerland, a region that stretches from the economically important city of St. Gallen to the idyllic shores of Lake Constance, offers a high quality of life. How is the real estate market currently developing and what factors are playing a role?
Current real estate market in Eastern Switzerland
The high quality of life and scenic beauty of Eastern Switzerland will also be reflected in real estate prices in 2024. According to properti’s real estate price portal, prices for apartments and houses here are well above the national average. For example, a condominium in St. Gallen costs an average of CHF 6,689 per square meter, while single-family homes in Thurgau change hands for around CHF 1.2 million.
In the last twelve months, prices for residential property in the canton of Thurgau have risen by 5.5 percent. Real estate in Kreuzlingen is particularly popular. At a national level, the increase in value is somewhat lower at 4.2 percent.
Real estate prices for properties for sale in St. Gallen have also changed by 1.08% in the last year. The price per square meter for houses rose by 1.90% to CHF 7,050 m² and the purchase price for apartments increased by 0.96% to CHF 6,689 m².
Rents and vacancies
Rental prices in Eastern Switzerland continue to rise significantly. In the fourth quarter of 2023, the average price per square meter for rental apartments was around CHF 23, which represents an annual increase of 3%. The vacancy rate remains low, which indicates the consistently high demand for rental apartments. Despite the intensive construction activity in the region, the pressure on the rental market remains as the population continues to grow and the region remains attractive for newcomers.
On June 1, 2023, there were 1,203 vacant apartments in the canton of St. Gallen, 103 fewer than in the previous year. The vacancy rate is 0.68%, one of the lowest values in the region. The decline in the vacancy rate shows that the supply of apartments is still not meeting demand. In cities such as St. Gallen in particular, the vacancy rate is extremely low, which highlights the strong excess demand and the pressure on rental prices.
New buildings and transactions
Construction activity in Eastern Switzerland remains intense in order to meet the high demand for living space. However, the number of residential land transactions is falling slightly. In 2023, a total of 854 single-family homes (-0.5%) and 1,298 condominiums (-1.8%) were traded. This decline is partly due to the limited availability of building land, which is restricting construction activity. Nevertheless, attempts are being made to meet demand and create new living space through new construction projects.
The advantages of Eastern Switzerland
Eastern Switzerland is known for its high quality of life and wide range of leisure activities. With a population of around 167,000 (as at the end of 2023), St. Gallen is the largest city in Eastern Switzerland and has a population density of around 2,100 inhabitants per square kilometer.
St. Gallen, the cultural and economic center of the region, impresses with a wide range of leisure activities, first-class restaurants, cultural events and a lively art scene. Lake Constance offers a beautiful backdrop and numerous opportunities for water sports and relaxation.
The surrounding areas, such as the Appenzellerland and Thurgau offer idyllic residential locations with a high recreational value. The region is ideal for long hikes and nature experiences.
Local expertise as the key to success
The complexity of the real estate market in Eastern Switzerland makes the expertise of local real estate agents indispensable. Experienced experts know the intricacies of the market, current trends and can make realistic valuations. This is particularly important in a highly competitive region such as Eastern Switzerland in order to give both buyers and sellers a decisive advantage. A good real estate agent can not only assist in finding the ideal property, but also help with negotiations and legal issues, making the whole process much easier.
Conclusion
The real estate market in Eastern Switzerland remains challenging. High prices and strong demand characterize the market, which is particularly difficult for buyers. Sellers, on the other hand, benefit from the high prices and limited availability of real estate. Local brokers are essential to successfully navigate this complex market and achieve the best results.
If you would like to find out more about current real estate prices in Eastern Switzerland, visit the real estate price portal at properti.com. Here you will find detailed information and can track price trends in your desired region.
Data are without guarantee. The information on these Internet pages has been carefully researched. Nevertheless, no liability can be assumed for the accuracy of the information provided.