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The headlines in the press in recent weeks have shocked home and apartment owners. The headline of a page-long article in the newspaper “NZZ am Sonntag” is “The real estate market is fluctuating”. “Weekend Switzerland” it reads: “Accident scare is swirling around”. And the headline “Blick”: “Rising interest rates with consequences: When owners’ homes are too expensive”.
The real estate industry seemed to be safe from shocks for years, no matter what. The prices of apartments, detached houses and all developments knew only one direction, they rose. This year, however, something no one expected happened: the trend in property prices reversed. In the first quarter of this year, apartment market prices fell by 12.1 percent compared to the previous year. Single-family homes and apartments were slightly less affected: Prices fell 1.3 percent and 1.1 percent, respectively, in the first quarter, according to the Federal Statistical Office.
Higher interest rates, but also for other reasons
Mainly responsible for this is mortgage interest rates, which have risen again after a historically low level. But the inflationary environment also contributes to this. Falling prices are offset by factors that cause concern in the real estate industry: higher building prices, increasingly complex rules for building permits, and neighbors willing to object. After all, population growth, immigration and the consequent shortage of housing ensure that the price level does not fall completely.
However, rising mortgage interest costs are putting some homeowners under pressure to consider selling their home or condo just at a time when demand is falling due to higher interest rates. This means that they are directly confronted with the new reality of the real estate market. They face the challenge of locating their properties in this highly competitive environment.
At the height of the real estate boom, they could do it themselves using a do-it-yourself marketing strategy to save costs. As a result, they may have given up on the maximum attainable selling price. However, thanks to high property valuations, these losses were easily compensated.
Brokers are in demand
Such an approach no longer works in the volatile environment where property values are falling and demand is falling. Solution: trust a broker. Many already seek help from experts. According to the “Handelzeitung”, only 12 percent of all real estate transactions are carried out directly between natural persons. 88 percent of those who want to sell consult a broker.
This is understandable. Almost no property owner has experience selling a home. Real estate expert Adrian Kunzi says that as a private person, you can buy and sell a house once in your life. “More importantly, it’s good advice based on transparency and today’s technical capabilities, which brings to light measurable and reliable results.”
Künzi founded the company Properti with his brother Levent in 2019. Since then, they have processed over 3,900 transactions with 150 employees. Last year, the company was named one of Europe’s top 100 proptech companies by Builtworld and PwC. Proptech companies create and optimize real estate products and services using the latest information and communication technologies and making their business processes or business models more efficient.
More accessible and transparent
Levent Künzi believes that technological change will gain momentum in the real estate sector and especially among brokers in the coming years. However, most real estate brokers still do their work manually. “This is not only inefficient, but often comes with a certain lack of transparency,” he says. “We focus on simplifying all processes, such as selling and purchasing, management, leasing and leasing, making the complex real estate system more accessible and transparent.”
According to Levent Künzi, the agency should be able to devote as much time as possible to advising clients. “And as a software and real estate company, we’ll take care of the rest.” Properti digitizes repetitive and manual processes, eliminates idle times and lowers costs. In turn, the broker strengthens his position as an expert and can be used as a contact person for individual issues.
360 degree service
But the Zurich real estate company offers even more. “In the real estate industry today, it is no longer just about selling a property or finding a paying tenant for a landlord, but everything that comes with it. We also offer this service, which we call 360-degree service,” says Levent Künzi. It includes a clear overview of the complex market as well as legal issues, carefully crafted budgets, effective marketing strategies and targeted negotiation skills used for the benefit of clients. Initial consultation is done via video to filter seriously interested parties. In addition, Properti offers moving companies brokerage, cleaning It turns into a platform that covers all topics, including institutes or home insurance and financing solutions.
Levent Künzi says it’s important for Properti’s customers to pay commissions only if a transaction has been made. “We don’t work with login and activation fees, expense allowances, or monthly costs.”
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
