Real Estate Global Report - Essay Example

Real E s in Switzerland Switzerland’s real e market is characterized by high demand because of stable governance and strategic location. In Geneva, more than sixty percent of the residences live in rental houses because the prices of the houses are high. Also, the high demand leads to stiff competition among buyers thus leading to scarcity. Ownership of land and houses in Geneva is regulated by the ownership rights that define the priorities given to the native and foreign people. In the case of Swiss citizens, nationals of members of the European Union (EU) and other parties with the EU/EFTA B residence permits have the right to own land in Geneva.

Another group that is allowed to own land include the Non-EFTA nationals with permanent resident certification in Switzerland. Companies that are based in Switzerland and controlled by people who are restricted by the regulations above can also own all types of real estates in Switzerland. In the case of EU and EFTA cross-border commuters, they can own second homes whose location is close to their workplaces. In the case of Non-EU/EFTA nationals who reside in the city, they can only own main residence in Geneva (Hoesli, Martin, Giaccotto, and Favarger, 101).

Groups that must acquire an ownership permit before buying real estates in Geneva include foreign nations who reside outside Switzerland, non-EU citizens who live in Switzerland without a settlement permit. Companies operating in Switzerland, but with their head office outside Switzerland, must also obtain a license before owning real estate in Geneva. Another restricted group is companies that are legally registered in Switzerland, but non-residents own the control share. Buyers who conduct the transactions on behalf of third party are also required to obtain a permit before owning land in the city.

New housings are being developed Switzerland where up to 65%of the new development are rental houses. In comparison to members of the EU, there are few single owner house that are currently available in Geneva. The main developers in the city are real estate companies who obtain land from the authorities and develop high-end cities. For instance, the major developments are located in the Greater Geneva Berne Area (GGBA). Here the developments are conducted by private developers. They improvise the designs such that the final city shall have all the basic amenities and services.

Here, they include business centers technology parks, roads, recreation centers and security stations ((Hoesli, Martin, Giaccotto, and Favarger, 106). Prices are the main determiners of the owners of these new developments. As a result, companies opt to buying land outside the city, where the prices are considerably low. Although there are few cases, other developments include apartments and residential houses. They include spring -Chamsey and Collonge-Bellerive Apartments. Such developments are mainly located on the outskirts of the city.

Here, the developments are done on the demolished buildings, which are basically too old for the market price. Regardless, the prices remain higher than in most of the other countries in the EU. In conclusion, Geneva city enjoys high demand for residential and business residents. The high demand leads to high prices of land ad property in the city result, most of the houses are rental. The ownership regulated residents, and members of EU/EFTA are given priority. In the case of foreigners, they have to obtain a permit from the authorities.

Finally, it noted that there are few developments, where concentration is in the GGBA region. Work cited. Hoesli, Martin, Carmelo Giaccotto, and Philippe Favarger. "Three new real estate indices for Geneva, Switzerland." The Journal of Real Estate Finance and Economics 15.1 (1997): 93-109.