Strong price increase for condominiums
Raiffeisen sees a further rise in residential property prices. While prices for single-family homes are only rising moderately, the increase for condominiums is significant. The trend is likely to intensify in the new year.
Raiffeisen anticipates a further rise in residential property prices in the fourth quarter of 2024. According to a press release, the transaction price index for single-family homes fell slightly by 0.1 per cent compared to the previous quarter, but rose by 4.2 per cent compared to the previous year. The balance for condominiums was more pronounced. The increase here was 1.4 per cent compared to the previous quarter and 2.4 per cent compared to the same period in 2023.
“Thanks to significantly lower financing costs and very good prospects for a further fall in interest rates, demand is likely to increase further at the start of the new year and thus accelerate the price trend once again,” Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland, was quoted as saying in the press release.
The strongest price increases for single-family homes compared to the previous year were again reported in southern Switzerland (7.7 per cent) and central Switzerland (6.3 per cent). An increase of 0.7 per cent was also recorded in western Switzerland, which had declined in the previous year, and 1.0 per cent around Lake Geneva. Central Switzerland ( 4.4 per cent) and Eastern Switzerland ( 3.5 per cent) are leading the way in condominium ownership. Tourist centres are again the most popular, with residential property prices rising by 3.8 percent.
The index is compiled quarterly and is published at the beginning of each quarter. It is based on real estate transaction data from Raiffeisen and the Swiss Real Estate Datapool (SRED).