What changes are emerging in real estate financing? How will mortgage interest rates develop – and is there a risk of the real estate bubble bursting? Four financing experts from eastern Switzerland have answers.
As in large parts of society and the economy, the topic of sustainability is becoming increasingly important in banks and real estate financing.
“It is also becoming more important to the lending financial institutions. The need for advice in the area of financing energy-related renovations and measures to promote climate efficiency such as switching to renewable heating systems is increasing,” says Reto Inauen, President of the Association of Thurgau Raiffeisen Banks.
This is also confirmed by Ueli Manser, Director of the Appenzeller Kantonalbank: “During mortgage advice, topics such as energy efficiency, heating replacement, photovoltaic systems and other possible energy-saving renovations are addressed. The discussion of the various possible optimizations, which the landowner can then voluntarily implement, is an important contribution of the banks to the environment,” said the director of the Appenzeller Kantonalbank.
Increase in renovation and densification projects
Walter Ernst, head of Hypo Vorarlberg in St.Gallen, which has been financing alternative energy provision for over 20 years, essentially does not expect any new trends in 2024, but rather a continuation of the existing development in the area of environmental, social and governance, or ESG for short: “That The topic of ESG is becoming increasingly important. On the one hand, with regard to energy-efficient financing, and on the other hand, in the financing of alternative energy sources such as large photovoltaic systems or energy power plants.”
In this context, the head of Hypo Vorarlberg in St.Gallen also expects an increase in renovation and densification projects. However, these would be very challenging because the construction costs would be accompanied by higher uncertainties.
René Walser, Head of Private and Business Customers at St.Galler Kantonalbank, also does not expect any major changes this year: “Demand for residential properties in eastern Switzerland remains high and therefore still exceeds supply in most places. The interest rate situation has eased again after the increase in mortgage interest rates in the first half of 2023. There are therefore no signs of any changes in the area of real estate financing in eastern Switzerland.”
2024-02-26 17:03:11
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