You at Wetag Consulting are the leading real estate company in the Ticino luxury market. The current situation indicates that exclusive properties on Lake Lugano and Lake Maggiore have not lost value. Given your experience - also at an international level - do you think that in the future the luxury market will be penalized for the lack of properties?
Ueli Schnorf: "The situation has clearly changed. In the past, when there were no real building regulations and plenty of land was available, dream properties could be freely built, fully meeting the owners' needs. Today , despite stricter regulations, the real estate market is constantly expanding, and the situation is not at all alarming. Indeed, there are numerous homes built in the second half of the last century, which are outdated both in terms of engineering and aesthetics, requiring major renovations. Some are even being demolished to give free rein to architects' creativity. Finally, I would say that there will always be the possibility of finding an ideal property or location. Of course, it takes a little more patience than in the past, and investments will also be increasingly significant, but these are typical signs of regions like Ticino, where the quality of life is high."
As experts in the luxury market, at Wetag Consulting you also know the dynamics that lead a person to prefer one property over another. To what extent do your customers, people with above average financial possibilities, ask to find the right investment? Nowadays, what types of properties have long-term potential?
Philipp Peter: "I can answer very simply by saying that Wetag Consulting 's slogan , ' Location, Location, Location!', has always been the most important and compelling one, and will continue to be so today (and in the future). Prestigious locations—anywhere in the world—will virtually always maintain their market value, even increasing over time. Yes, we are luxury experts and therefore accustomed to a demanding clientele, with specific requests and truly large budgets, which, however, isn't always easy to satisfy. We know that lakeside properties with large parks (gardens) exist in limited numbers, and Ticino isn't huge. For this reason, we offer our clients comprehensive consulting, recommending the right investment. This, I repeat, primarily focuses on the property's location and privacy, as well as its lake view and greenery—all factors that have become even more essential since the pandemic. This applies to all properties."
Mortgage rates are rising and inflation has hit all of Europe, yet, as we have just heard, luxury properties know no crisis…
Iradj Alexander David: "When the circumstances and dynamics that influence the acquisition of real estate become more unfavorable and burdensome for potential buyers, as in the case of rising mortgage rates, a decline in sales is to be expected. In these cases, the properties most affected are second homes and vacation homes, as they are intended for leisure and prestige. However, when it comes to luxury properties , the situation is completely different. In times of crisis, those who are financially able to relocate to a country offering better conditions do so. We are talking about people willing to invest more than ten million francs in their home. Due to this dynamic, we are experiencing a particularly positive period for the sale and purchase of luxury properties, which inevitably leads to a solidification of prices, and even, in some circumstances, an increase."
