No end to the boom in the Swiss real estate market
Those who are looking to move and are looking for a new rental apartment must currently expect rising prices. Those interested in buying were also confronted with higher price demands in May. The home ownership boom is continuing, as the Swiss Real Estate Offer Index shows.
Tenants who wish to move must be prepared for higher rents when looking for an apartment. After several months with practically unchanged values, landlords raised their price expectations by an average of 0.7 percent in May. The correction is almost as large as the change registered over the last twelve months (0.9 percent). This is shown by the Swiss Real Estate Offer Index, which is collected by the SMG Swiss Marketplace Group in cooperation with the real estate consulting company IAZI.
However, the development of rents differs depending on the region. Apartment seekers in the greater Zurich region (1.8 percent) and in central Switzerland (1.2 percent) are confronted with a significant increase in asking rents. The surcharges are lower in the Lake Geneva region (0.5 percent) and in north-western Switzerland (0.4 percent), while in the central region (0.1 percent) and in eastern Switzerland (0.1 percent) there are practically no changes. In contrast, rents have fallen in Ticino (−0.8 percent).
Home ownership: The boom is not over
The real estate market is currently in focus mainly because of the high prices for residential property. Against the background of rising mortgage interest rates, many observers expect the situation to cool down soon. However, the asking prices are still on the rise, as the analysis of the advertisements in May shows.
“For single-family houses, 1.0 percent higher values were required than in the previous month, for condominiums the price growth is 0.2 percent. The interest-related increase in financing costs does not seem to bother prospective buyers much. At least sellers are still assuming an increasing willingness to pay,” says Martin Waeber, Managing Director Real Estate, SMG Swiss Marketplace Group.
As of May 31, 2022
The Swiss Real Estate Offer Index is published on the websites of ImmoScout24 and IAZI AG.
www.immoscout24.ch/immobilienindex
www.iazi.ch/angeboteindexes