The prices of condominiums rose by 0.7% in July, according to Immoscout, which expects this development to slow down. Rents have increased in several regions.
The prices of individual houses rose by 0.2% last month compared to June, specifies the Swiss Real Estate Offer Index, published on Wednesday and compiled by ImmoScout24 in collaboration with the real estate consultancy CIFI.
The stability of demand is due in particular to positive net immigration to Switzerland. However, ‘with rising interest rates and the general rise in maintenance and investment costs, living in one’s own home is becoming significantly more expensive,’ said Martin Waeber, in charge of real estate at SMG. Swiss Marketplace Group. As a result, the purchase of single-family homes or condominiums might lose its appeal.
Rents offered in adverts rose last month by 0.3% in the country. Regional disparities remain significant: prices rose in Ticino (+1.3%), in Eastern Switzerland (+0.6%) and in the Mittelland area (+0.5%), while they declined 0.1% around Lake Geneva.
Tenants should expect charges to increase due to rising oil and gas prices. In addition, the rise in interest rates affects institutional investors, who now have other investment options than real estate. ‘The decline in demand for investment properties might lead to a decline in construction activity and, consequently, a scarcity of rental housing supply’.
/ATS
