Demand for condominiums is stronger than before Corona
Condominiums are currently more in demand than ever. This is what the new online home market analysis highlights. According to the analysis carried out by the Swiss Real Estate Institute of the Zurich School of Economics and SVIT, an astonishing surge in demand began in the third quarter of 2020.
According to a report on the Online Home Market Analysis, the demand for condominiums declined slightly overall from the fourth quarter of 2019 to the end of the third quarter of 2020 in the reporting year, but saw a strong surge in demand in the last quarter. In the analysis carried out by the Swiss Real Estate Institute of the Zurich School of Economics ( HWZ ) and the Swiss Association of the Real Estate Industry ( SVIT ) in collaboration with the digital real estate company homegate.ch , this is based on the shorter advertising period for condominiums offered on the Internet.
During the entire reporting year, a condominium in Switzerland had to be advertised on an online platform for an average of 86 days. It was 60 days before the Corona crisis. In the third quarter of 2020, however, the advertising time fell to the record low of 52 days, despite an 8 percent increase in the number of advertisements. Condominiums are therefore currently more in demand than ever, the analysis found.
Supply and demand were analyzed based on the advertisements on the seven major Swiss real estate marketplaces between October 1, 2019 and September 30, 2020 compared to the previous period. In the reporting period from October 1, 2019 to September 30, 2020, around 91,387 condominiums were offered for sale on the Internet across Switzerland, which corresponds to an increase of 19 percent compared to the previous period.
Professor Peter Ilg, head of the Swiss Real Estate Institute at HWZ, attributes the growth in demand mainly to two factors: “On the one hand, the boom in demand in the third quarter is due to the deferred demand from the previous quarters, but on the other hand it is also due to a change in behavior: More beautiful living is has become even more important to many Swiss after the lockdown, ”Ilg is quoted as saying.
Jens Paul Berndt, CEO of Homegate AG, is quoted as saying: “We have also noticed a sharp increase in visits and contact inquiries. This is a sign that real estate is a popular investment property even in times of crisis. "