“Real estate is selling at the top”

Mortgage rates are rising again. First time in years. And true. On average, they nearly tripled in 2022 in Switzerland. This has an impact on supply and demand in the market for single-family homes and apartments.

“Demand for home ownership has declined with the development of mortgage interest rates,” says Ines von der Ohe, specialist at CSL Immobilien Zurich, in an interview with real estate portal cash.ch. The number of search subscriptions for hosting on regular real estate portals decreased by twelve percent last year. The effect: “Some owners now want to sell their properties quickly at the top.”

Negative consequences for prospects

The consequences of the energy crisis – rising electricity and gas prices – will have a negative impact on household budgets. “For some households, buying a property is still a long way off,” says von der Ohe. But real estate demand is still strong in hotspots like the Zurich region.

And yet: “Rising mortgage interest rates and rising building material prices are currently opposed to buying a property,” says the expert. Especially in the case of a conversion or renovation, high construction prices are currently having an effect.

«The value of good positions is relatively constant»

In fact, there has been some movement in the real estate market. “Increasing uncertainty regarding supply chains on the one hand, and alternative investment opportunities on the other, has slowed demand a bit, which could lead to minor adjustments depending on the location and type of property,” Ines von der Ohe told Cash.ch.

He thinks it’s too dramatic to talk about a real estate bubble that could burst at any moment. “They are certainly very good, sought-after and popular places that have proven to have relatively stable values ​​in the ups and downs of the economy,” he says. He does not see a threatening price collapse on a broad front. (pbe)