Real estate consulting firm Iazi wrote in a study Thursday evening that there has been a decline in willingness to pay for multifamily homes in recent weeks. This means that the peak in this segment is likely to be passed. To a lesser extent, this also applies to the condominium business.
However, demand for single-family homes remains strong and they will likely have to dig their pockets again to buy their own in the coming quarters.
“back to normal”
Iazi’s boss, Donato Scognamiglio, explained that the market is currently reacting to the high interest rates: “In this respect, the expected price correction for apartment buildings corresponds to a return to normalcy, not an accident,” he writes.
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In times of negative interest rates, almost every price was paid for coveted investment properties. Iazi explained that with positive key interest rates, real estate now has to defend itself against other investment opportunities.
The price rose again in the last quarter
The SWX Iazi Private Real Estate Index showed an unaffected increase in the fourth quarter, with residential real estate up 1.4 percent from the previous quarter. Detached houses and condominiums contributed more or less to this price increase. Throughout 2022 as a whole, house prices were 5.0 percent higher than in 2021.
The apartment price development index shows the same picture. Here, prices increased by 1.7 percent in the fourth quarter compared to the third quarter. Throughout the year, the growth was 5.6 percent. (SDA)