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This emerges from the Swiss Real Estate Bid Index published Wednesday by SMG Swiss Marketplace Group and real estate consulting firm IAZI.
That’s why the Swiss National Bank’s (SNB) interest rate hike in March is effective, as it is said to mean a further increase in mortgage interest rates for those who want to buy and reduce demand for housing. It also affects the sellers’ demand prices, which are almost unchanged compared to the previous month (detached houses remained unchanged, condominium +0.1%).
As more interest rate hikes are expected due to persistent inflation, the calm in the houses to be purchased should continue. However, a nationwide trend reversal is not expected. That’s because high levels of migration are causing a constant demand for living space, which is said to support prices, especially in sought-after central locations and agglomerations.
A similar picture emerges for rental apartments. In April, the upward momentum weakened in many places and even saw a 0.1 percent month-on-month decrease across Switzerland. Rents increased in Ticino (+1.2%) and the Lake Geneva region (+0.6%), while decreased in the canton of Zurich (-0.7%) and central Switzerland (-1.4%).
Unlike home prices, SMG says this will be more of a temporary relief. Within a year, demanded rents in all regions of Switzerland increased significantly in some cases. Limited supply and lower construction activity also point to more upside pressure. (SDA)
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.
