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Property prices have been rising steadily since the turn of the millennium. But they’ve only grown really fast in the last three years shaped by the pandemic. Lower interest rates, increased need for its own four walls, higher reserves thanks to less travel spending: higher demand drives prices up.
Data from the Federal Statistical Office (FSO) showed that prices for single-family homes and condominiums in Switzerland have increased by an average of 14 to 21 percent since the beginning of 2020, as reported by the “Handelzeitung”. Interesting: Prices in rural areas have increased the most, not in urban centers or agglomerations.
For example, housing prices rose particularly sharply in Ticino, Valais, the French-speaking Jura region (Jura, Neuchâtel, Vaud, Geneva), the Bernese Oberland, Thurgau and the north of Zurich (Weinland, Furttal, Limmattal). Usually more than 20 percent. The figures are average values, but clearly show the improvement.
Wanted: Well-connected and still rural
First of all, there was a strong increase in scarce and in demand municipal residential properties. As a result, residential real estate prices also increased significantly in areas close to residential areas with good highway and rail connections. Example: Aadorf TG, located between Winterthur ZH and Frauenfeld. There, detached house prices have increased 20.68 percent over the past three years, and condominium prices are still up 15.77 percent.
If an apartment still costs CHF 800,000 in December 2019, its market value is currently around CHF 926,000. An increase in value of CHF 126,000 in three years, which corresponds to CHF 42,000 per year or CHF 3,500 per month!
Real estate is a safe investment
The reversal in interest rates, which will begin in mid-2022, will reduce the price increase, but by no means reverse it. At the end of 2022, the market value of privately owned real estate has increased by CHF 148 billion to now reach CHF 2,550 billion, according to a statement by the Swiss National Bank (SNB). Despite the bad stock market year, the collective wealth of private households also increased.
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.
