Housing is becoming noticeably more expensive for everyone
Demand for residential property will remain stable in July 2022 despite the interest rate hike. The prices even went up. The generally higher maintenance costs are also a burden for tenants, plus the slightly higher rental prices. This is shown by the Real Estate Offer Index.
The increased interest burden has so far had no effect on the demand for one's own four walls. According to a press release on immoscout24.ch , those interested in buying their own homes are “still in a buying mood”. The data presented there is based on the Real Estate Offer Index . It is collected by the SMG Swiss Marketplace Group in cooperation with the real estate consulting company IAZI . Immoscout24.ch is an SMG marketplace.
According to this, the price expectations on the supplier side have not reduced despite the increase in the key interest rate by 0.5 percentage points. Detached houses cost 2 percent more, condominiums were advertised within a month at 0.7 percent higher prices. "With the increased interest burden and the general increase in costs for maintenance and investments, living in your own home is becoming noticeably more expensive," Martin Waeber is quoted as saying by SMG. Accordingly, a slowdown in price development is likely.
Advertised rental prices also increased slightly last month by 0.3 percent. In addition, the significantly higher oil and gas prices would lead to "significantly higher expenses".
Demand for investment properties could fall among institutional investors. This may result in reduced construction activity and thus a shortage in the supply of rental apartments. It remains to be seen how asking rents will develop in the long term.