Residence: Mr. Ginesta, you are close to the market thanks to your work. How are things going around Lake Zurich?

Claude Ginesta: Residential real estate remains in high demand in the Zurich economic area, in the city and on both sides of the lake. The mid-range segment in particular is doing well, as are more affordable apartments. When analyzing markets, I think it is advisable to differentiate between market segments and time periods. Let’s take the period since 2000: the three most important price segments have developed in roughly the same way, even if there have been major fluctuations in between. Even today, the segments are developing more or less in step with each other.

In the luxury segment, however, the air has become thinner. What do you attribute this to?

After the disproportionately high price increases in the years 2009 to 2013, some air is now escaping from the bubble. Last year, prices in this segment fell by around 9 percent in the greater Zurich area, and I expect them to stagnate this year. In other locations that have experienced even greater growth, prices are falling even further. You can see this on Lake Geneva, in Gstaad or in the Engadin.

Your company is also active in Graubünden. Second homes are currently having a hard time. Why?

Segmentation is also important here. Comparatively inexpensive properties up to around CHF 1.2 million in popular locations such as Flims/Laax are selling very well. However, domestic demand is very robust. With exclusive, very expensive properties, on the other hand, sellers need patience and have to compromise on the asking price. Nobody wants to pay fantasy prices these days. In addition to the consequences of the second home initiative, particularly the construction boom shortly after the vote, the reluctance of foreign buyers is now clearly noticeable.

What are the reasons for this?

Exchange rates play an important role. For buyers from the UK, for example, Switzerland has become around 40 percent more expensive since 2010. The Russian rouble has even depreciated by 100 percent. Added to this is the automatic exchange of information in tax matters – no more black money flowing into vacation properties.

The marketing of real estate is changing. What has become more important to you?

Our own customer network and direct approach. We keep very precise records of where the contacts and interested parties come from. Only a good fifth find their way to us via the major real estate platforms. Maintaining your own database is key. As a broker today, you have to master “big data”.

Digitalization will also change the brokerage profession. How do you keep up to date?

Once a year, I attend a training event for the industry in the USA, where the latest trends and technologies are presented. However, we are also experimenting with new applications within our own company. For example, we recently implemented new 3D software and a web platform. Investors and interested parties can view the property virtually in advance in a protected data room. This gives them a first impression and is particularly useful for properties that are far away. It makes it easier for us to organize viewings, and buyers can save themselves unnecessary viewings.

What factors determine the success of a property sale?

As an agent, you should be honest and work with realistic prices. When in doubt, I may not accept an object if there is no chance of a deal.

In your core area, the Gold Coast on Lake Zurich, many older villas with some surrounding land are currently being replaced by apartment buildings. How important is compaction?

Because existing building land has become scarce and new land is no longer being zoned, we cannot avoid densification. The additional supply does not always match the demand; apartments that are too large and too expensive are often built. However, smaller and medium-sized units up to a maximum of 140 m2 are in particular demand. In cities like Zurich, people should and may build higher or add a storey in the future.

Many of the new buildings are described as aesthetically questionable, as “crème cuts”.

I often ask myself: when is architecture beautiful? Should the new fit in with the existing, or do we accept the new as a contemporary style? Personally, I have trouble with the all-round glass aquarium houses in easily visible locations. People need privacy and therefore places to retreat and feel safe.

Politicians are increasingly intervening in the real estate market. What’s on your mind right now?

Together with other companies and the Swiss Real Estate Association SVIT, we are committed to a tax-fair valuation of properties and the deductibility of the broker’s commission actually paid. The latter is often not fully taken into account by the authorities in the Canton of Zurich. The Lex Koller has been on our minds for a long time. A tightening of the law, as proposed by the Federal Council, is currently just as unlikely to gain majority support as a repeal. I believe that anyone who wants to settle here should be allowed to buy a property. I consider the current restrictions to be appropriate.

Interview: David Strohm

Click here for the PDF version of the interview in NZZ Residence 03/2017