Lugano: Luxury properties remain in strong demand

The famous German author Hermann Hesse felt a passionate affinity for the region around the city of Lugano and lived in the municipality of Collina d’Oro for more than ten years. Lugano is only an hour’s drive from Milan and is Switzerland’s third largest financial centre after Geneva and Zurich. “With its university, congress facilities and wealth of culture, the city offers many attractions and a high quality of life. Demand for properties here is consistently high as a result,” says Simon Incir, Managing Director of
Engel & Völkers Lugano.

Lake views is the top search criterion

Monte Bre and Collina d’Oro rank among the most expensive and sought-after residential areas in Lugano. Interest is also very high in properties located directly on the banks of Lake Lugano. Families, young couples and singles tend to be looking here for premium-standard freehold apartments and detached houses. In prime locations, exclusive apartments reached peak prices of as much as 20,000 Swiss francs per square metre in 2018 (approx. 18,300 euros). In the same period, the top price for detached and semi-detached houses was 22 million Swiss francs (approx. 20.1 million euros). Features at the top of the list of buyers’ search criteria include a peaceful location with lake views, the greatest possible level of privacy, and sophisticated technical fittings.  

Germans and Italians make up the largest foreign buyer groups

Around 50 percent of buyers in Lugano are Swiss nationals. Among the foreign buyers, 30 percent come from Germany, 30 percent from Italy and the remaining 40 percent from all over the world. “The combination of financial centre and Mediterranean holiday paradise makes Lugano a very interesting second home market for international clients,” says Simon Incir.

Outlook: Stable price development expected

Engel & Völkers expects real estate prices in Lugano to stabilize out at a high level in 2019. One current trend is the rise in the number of Swiss buyers. “With traditionally popular holiday destinations in some other countries experiencing political turbulence, many Swiss citizens are now rediscovering the south of Ticino for themselves. Young families in particular are opting to acquire a second home in Lugano and the surrounding area due to the Mediterranean climate,” Simon Incir reveals. The completion of the Gotthard Base Tunnel has the potential to increase this trend still further. It has created a rail link from German-speaking Switzerland to Lugano in just two to three hours.