Raiffeisen sees weaker price momentum for property
Raiffeisen reports a slowdown in price dynamics in the second quarter of 2024. Prices for single-family homes increased by 1.3 percent, while condominium prices rose by 0.5 percent. A quick rebound in price dynamics is not expected due to high interest rates.
Raiffeisen recorded a slowdown in price momentum in the second quarter of 2024. Compared to the first quarter, prices for single-family homes rose by 1.3 per cent and those for condominiums by 0.5 per cent. According to a press release, “price momentum is not expected to pick up again any time soon” due to the persistently high interest rates compared to the low-interest phase, says Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland.
The financial experts are currently observing the strongest price increases for single-family homes in city centres or tourist regions. “The price trend on the owner-occupied property market is weakening further with the descent from the interest rate peak,” says Hasenmaile.
Compared to the previous year, prices for single-family homes in southern Switzerland (+11 per cent) and eastern Switzerland (+9.9 per cent) recorded the highest increases. Prices for houses fell slightly in western Switzerland (-1.8 per cent) and Zurich (-1.5 per cent). In contrast, Zurich (+6.3 per cent) and Northwestern Switzerland (+2 per cent) recorded the strongest increases for condominiums. According to the Raiffeisen Transaction Price Index, prices for owner-occupied flats have generally risen slightly in urban municipalities, but are weakening in the centres.
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).