Edwin Hanssen of Florens Lake Resort and Spa, Switzerland. Pic: Salim Matramkot/The Peninsula
Florens Lake Resort & Spa, a prominent Swiss real estate company, is offering rare opportunity for Qatari investors to buy a home in Switzerland, which has swaths of stringent laws with regard to foreign ownership of real estate properties and a unique mortgage system, in the European nation, which is one of the most developed countries in the world.
The Company (Florens), for the first time, showcased its new and exclusive resort with holiday apartments for sale at the recently concluded Cityscape Qatar 2019. It is being built directly by Florens on the shore of Lake Brienz near Interlaken in the Bernese Oberland, which is expected to open by 2021-22.
The Swiss real estate market can be a source of great confusion for foreign investors, especially for the home buyers, with prices of residential properties varying significantly from one region to another.
“Normally it’s not easy as a foreigner to own or buy property in Switzerland. There is ‘The Lex Koller law which states that it has to be approved from authorities concern. So it’s difficult for non-Swiss nationals, for example Qataris, to buy a property in Switzerland. But because we have invested so much in the region, we are exempted from that law, and give the possibility for Qatari people to buy property in Interlaken region of Switzerland. It’s fairly a unique”, Edwin Hanssen, Manager at Florens told The Peninsula.
Hanssen added: “We have developing 155 units of holiday homes, which are suitable for individual as well as corporate investors. We will run it as a resort hotel. Since Swiss law also states that if foreigners buy properties they need to rent it out if they are not living. So we also rent the properties for the owners who do not stay and have an additional stream of revenue.”
Providing further details about the property, he said that they are fully-serviced apartments. If the owners live only for one month, the company will maintain and rent the property for the remaining 11 months and share the revenue for the investors which give them extra income.
The price range varies from $800,000 (60sqm) to $3m (200sqm, that is the maximum foreigners can buy) depending on the size and other features. It’s a freehold with full-ownership but doesn’t offer any other benefits such as citizenship or any kinds of passport etc.
“This is the first time we are participating in the Cityscape Qatar, but Interlaken region is very popular among Arabs, and they like it very much that’s why we are here. We expect good response from Qatari investors as Switzerland is one of the most favourite tourist destinations for them. We have a lot of investors from other GCC and Middle Eastern countries buying properties in Switzerland,” said Hanssen.
Explaining further about the Interlaken he said that it’s a traditional resort town in the mountainous Bernese Oberland region of central Switzerland. Built on a narrow stretch of valley, between the emerald-colored waters of Lake Thun and Lake Brienz, it has old timber houses and parkland on either side of the Aare River. It’s surrounding mountains, with dense forests, alpine meadows and glaciers, has numerous hiking and skiing trails.
Florens Lake Resort is located in the German speaking part of central part of Switzerland and the capital city Bern is within 30-40 minutes drive. The owners can occupy it for 52 weeks but, he said that it’s not a primary residence area for people, so it can be used as a second-home and commercial use. The property can yield average annual revenue of 3-5 percent in addition to 2-3 percent of value appreciation, which is effectively up to 8 percent annual return on investment, according to Hanssen.
The properties can be purchased on cash with down payment but mortgage facilities are also available by banks with AAA ratings. The company doesn’t have an office in Qatar but the sales and other services are taken care of by the company itself. More than half of the units, according to Hanssen, have been already sold out, and invites investors to see in person the lakeside “unique properties with stunning views, located at 30-minuted drive from the nearest skiing destination.
According to Expatica, an online portal, home ownership levels in Switzerland are low, with around 60 percent of residents renting their property, and the majority of homeowners living in more rural communities away from the big cities. The reasons for this are many – from constant population growth in cities placing a strain on limited housing stock, to rising prices and bureaucracy that significantly delays property purchases.
