Rent, property or second home: This is how living space prices are increasing

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Whether you rent, own your own home or use it as a second home: a roof over your head is becoming more and more expensive. Because housing, second home and rental apartment prices will continue to increase in 2023. Real estate experts at Wüest Partner also expect further price increases in the real estate market this year.

According to the real estate tracking published by Wüest Partner on Thursday, the price increase in 2023 has spread to the entire market. On average, condominium prices in Switzerland increased by a whopping 3.0 percent, 1.5 percent for single-family homes, 6.6 percent for second homes, and 10 percent for single-family homes for second use. According to Wüest Partner, rents across Switzerland will increase by an average of 4.7 percent in 2023.

Condos remain popular

According to Wüest Partner, apartments are still showing “incredible vitality” despite rising interest rates and prices. This was mainly because demand, as measured by the number of search subscriptions, increased again in the second half of the year.

Real estate experts therefore expect a further price increase of 1.2 percent for this segment this year. Single-family homes have also been hit recently, with renewed demand due to falling financing costs. According to experts, prices should increase by only 0.3 percent in 2024.

No relief in sight

Wüest Partner also attributes the high demand for housing to the lack of alternatives in the rental housing market. Because the supply of rental flats is gradually decreasing: “There is no sign of the market loosening at the moment,” he says. Therefore, a further rent increase of 3.7 percent is expected in 2024.

Buying a second home has become even more expensive in the past year. The prices of second homes increased by 6.6 percent in 2023, and the prices of detached houses for second use increased by 10 percent.

This is said to be partly explained by the popularity of home offices and the increasing appeal of mountainous regions during the summer months. In addition to the resulting demand, the Second Homes Act also greatly limits the construction of new second homes and therefore the available supply. This further triggers price dynamics. (SDA/dvo)

Source :Blick