Property for sale in Switzerland
The Swiss real estate market benefits from the economic recovery. While property for sale in Swiss prices are returning to growth, the situation on the market for rental apartments, offices and sales areas remains difficult. This is what emerges from the Credit Suisse study on the real estate market 2018.
After a brief period of decline, the prices of home ownership are returning to growth. Thanks to the strong economic recovery, demand increases in all price ranges. This is particularly favored by mortgage rates still at very low levels, despite the upward trend.The residential property for sale in Switzerland therefore maintains its attractiveness. At the same time the offer is limited. In recent years, the construction activity for owned homes has continued to decline. Credit Suisse economists expect a further contraction in supply and a consistently low vacancy rate in 2018. In most regions, property for sale prices in Swiss are expected to increase this year by 2.0 to 2.5%. However, regulatory provisions and demographic developments prevent the real estate market from overheating.
Prices vary significantly depending on the regions. If buying a house in Geneva and along Lake Zurich costs a lot, property for sale prices in Swiss particularly in rural areas are much lower. This affects the sustainability of buyers that is, where they can afford a property.
Real estate investments in Switzerland continue to be attractive. As long as interest rates remain low, alternatives with a comparable risk-return ratio are lacking. This is particularly true for the current year, which does not yet allow for an end to negative interest rates.
However, the Credit Suisse study of the real estate market indicates that the above-average returns achieved over the last few years will no longer be achieved. For properties for sale in Switzerland, further increases in value will be limited.