UBS expert on the real estate market and tiny houses
Where home ownership is still affordable in Switzerland
For the real estate economist at UBS, Maciej Skoczek, there are still purchase opportunities for affordable housing in some parts of Switzerland. In an interview, he also assesses where in Switzerland there might be a housing shortage.
From expensive to unaffordable: the potential for frustration is immense when you click through the real estate listings on major Swiss platforms. Because: The prices of single-family houses and apartments for sale have reached astronomical heights.
According to figures from real estate consultancy Iazi A house in Switzerland today costs almost 30 percent more than it did ten years ago. Depending on the region, the price increases are even higher, according to the real estate consultancy.
Even residential properties in luxury locations in Switzerland are becoming more and more expensive: last year, at around 10 percent, twice as much as the overall market. “The strong increases in assets – the result of a very good stock market year – are spurring demand,” says UBS-Immobilienexperte Maciej Skoczek im Interview with the Handelszeitung.
Where housing is still affordable
Luxury real estate is one thing, but where else are there regions that offer affordable home ownership, especially for families? Here, Skoczek names parts of Central Switzerland and regions in the cantons of Thurgau, Aargau and Valais as the cheapest “from a pure cost perspective”. The reason: The location costs are lowest here. These include costs for financing the property, income taxes and health insurance premiums. “In addition, the higher the income, the greater the advantage of low-tax cantons,” continues the UBS expert.
When choosing a location, however, the distance to the place of work, the quality of the school education and the quality of life are more important for families.
Tiny house trend continues
Tiny houses are less interesting for families and all the more interesting for one-person and couple households. According to Skoczek, this form of living in mini-houses is in vogue, which is supported by the rising prices in the market for single-family houses. “Thanks to the small area, you can sometimes buy a property like this for just 100,000 francs.” However, the market segment is too small, too inefficient, since a lot of building land is required for the small living space.
However, anyone who is flirting with a cheap mini house should not forget one thing: some of these tiny houses are mobile, do not require building land, and on the other hand do not experience any increase in value when the land becomes more expensive. In addition, the value is constantly reduced by depreciation, according to the UBS expert.
Tenants need not fear housing shortages
A topic that is currently making the rounds on the real estate market is a shortage of rental apartments. According to UBS, however, the shortage of rental apartments is largely a phenomenon of the centers. There is still no talk of a housing shortage. In the medium term, however, the number of available apartments will also continue to decrease in the agglomerations.
According to a Raiffeisen study on the real estate market, more apartments were built in Switzerland for years than were needed. That could change soon, the cooperative bank predicts. On the one hand, the construction and real estate industry put the brakes on last year because of the high vacancy rates in the construction of new projects. Residential construction has now slowed down and demand is picking up sharply.