Home ownership prices in Switzerland continue to rise
Also within the last year, the development of purchase prices for residential property had another increase. For condominiums, an average increase of 3.0% was observed in comparison to the same quarter of the previous year, while single-family homes increased by 2.6% in the same period. Despite the increase, the market was unable to match the growth rate of recent years, with the result that the average price increase since the turn of the millennium has risen on average. The forecast nevertheless promises further increases in the price level of real estate purchases: A strong overall economy, the consistently low interest rates for mortgages and the on average decreasing number of new sales are having an equally positive effect on demand and on further price growth.
Rental prices in Switzerland on a decline for the first time
A contrary trend is emerging in the housing rent market: In the second quarter of 2018, the average rental price for newly concluded contracts was 1.2% below the previous year's level - for the first time since 2005, there is a slight decline in rents. The main reasons are the increasing oversupply of rental living space and fewer people moving in from abroad. Despite this, the average rental price in Switzerland today is around 17% higher than in the reference year 2005, so that the renting of apartments is still a lucrative option for investors.
Would you like more details about the current developments on the Swiss residential property market? Or would you like to have your house, apartment or villa professionally marketed? Engel & Völkers Switzerland as your expert real estate agent will be pleased to inform you - we look forward to your call or email!