Residential real estate prices are expected to grow further this year, despite fears related to the war in Ukraine and the repercussions on the economy. Rents should remain stable. (archives) KEYSTONE/MARTIAL TREZZINI sda-ats
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–This content was published on May 24, 2022 – 11:11
(Keystone-ATS)
Residential real estate prices are expected to continue to rise this year, despite fears related to the war in Ukraine and the impact on the economy. Rents should remain stable.
For residential property, 59% of the specialists surveyed by the firm Fahrländer Partner (FPRE) expect prices to rise or rise sharply over the next 12 months, 39% expect stagnation and 2% a decline, according to the survey of 756 professionals in the sector. The survey was carried out between the end of April and mid-May, thus taking into account the war in Ukraine and the surge in inflation.
Regarding single-family homes, 72% of respondents expect prices to continue to rise, according to an FPRE press release published on Tuesday.
“Residential real estate remains a rare commodity, the economy is still doing well and a sharp rise in interest rates is not to be feared in Switzerland,” said Stefan Fahrländer, partner with the eponymous firm.
Echoing these remarks, the financial services portal Moneypark does not foresee “any significant increase in rates due to the slowdown in the economy”, according to a separate press release.
Regional differences
“The sharp rise in interest rates in April eased in the first three weeks of May,” Moneypark recalled. The interest rate for a ten-year fixed mortgage thus remained stable at 2.03% on average compared to mid-April, while that for an eight-year loan fell by 5 basis points to 1.85%. .
The five-year mortgage fell even more sharply, its rate falling over one month by 8 basis points to 1.46%. The three-month Saron, on the other hand, jumped 18 points to 0.93%.
In terms of rents, 66% of people questioned by FPRE expect rents to stagnate, 30% an increase and 4% a decrease. However, regional differences are significant. In the Lake Geneva region and in Zurich, 64% and 62% respectively expect housing costs to accelerate, compared to only 39% in the south of the country.
As for office property, a majority of participants (63%) anticipate stable rents, 29% expect a decline and only 8% envisage an increase over the next 12 months.
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