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The risk of a bubble forming in the Swiss housing market has decreased slightly in the third quarter of 2023. However, this was not because prices fell, but because rents increased.
The so-called UBS Swiss Property Bubble Index fell to 1.41 points (from 1.43) in the third quarter of 2023, the big bank announced on Wednesday. This means that the domestic market remains overvalued relative to its historical development.
The increase in house prices in the third quarter was 0.7 percent, comparable to previous quarters. Meanwhile, asking rents increased by 2.8 percent, according to UBS. This meant that the price-rental ratio dropped significantly.
Significant increase since 2020
In its risk assessment, the bank points out that the index is significantly lower than the level during the housing bubble of the early 1990s. However, the index has risen significantly since mid-2020 and now shows clear overvaluation in the domestic market. Sunday, especially on Lake Zurich, parts of Graubeğen, St. It sometimes gets too hot in the Gallen Rhine Valley and the Lausanne area.
The UBS Swiss Property Bubble Index consists of six smaller indices. These are housing prices relative to annual rents, consumer prices, household income as well as mortgage volume relative to household income, construction activity relative to gross domestic product, and the demand for loan applications for investment properties. (SDA/wgr)
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.
