Property prices expected to rise again this year
Single-family homes are expected to cost even more this year.
Rents to remain stable
Residential property prices are expected to rise again this year, despite fears about the war in Ukraine and its impact on the economy. Rents are expected to remain stable. (archives)
KEYSTONE/MARTIAL TREZZINI
Residential property prices should continue to rise this year, despite fears of war in Ukraine and repercussions on the economy. Rents are expected to remain stable.
For owner-occupied homes, 59% of specialists surveyed by 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 industry professionals. 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.

In the case of single-family homes, 72% of those surveyed expect prices to continue rising, according to an FPRE press release published on Tuesday.

“Residential real estate remains a rare commodity, the economy is still doing well and there is no reason to fear a sharp rise in rates in Switzerland”, said Stefan Fahrländer, a partner with the eponymous firm. Echoing these comments, the financial services portal Moneypark forecasts “no major rate hikes due to the economic slowdown”, according to a separate statement.

Regional differences

“The sharp rise in interest rates in April eased in the first three weeks of May”, Moneypark reported. 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 rate for a five-year mortgage fell even more sharply, by 8 basis points to 1.46%. The three-month Saron, on the other hand, jumped 18 basis points to 0.93%.

In terms of rents, 66% of those surveyed by FPRE expected rents to remain unchanged, 30% to rise and 4% to fall. However, regional differences are significant. In the Lake Geneva region and Zurich, 64% and 62% respectively expect housing costs to accelerate, compared with just 39% in the south of the country.

As for office real estate, a majority of participants (63%) anticipate stable rents, 29% expect a decline, and only 8% foresee an increase over the next 12 months.

ATS

Published: 24.05.2022, 12h21

About Cerise Immobilier gérance et courtage, real estate agency in Villars-sur-Ollon

Cerise Immobilier gérance et courtage is a real estate agency located in Villars-sur-Ollon in the canton of Vaud, Switzerland. We offer services in sales, purchases, rentals, PPE management, property valuations and tax and legal advice. We cover the Chablais region of Vaud, including the communes of Ollon, Gryon, Bex, Aigle, Les Diablerêts, Chessel, Leysin, Lavey, Noville, Roche, Yvorne and Villeuneuve.

Would you like to sell your property (chalet apartment, land or building)? You can obtain a free initial estimate by clicking on the following link: Online estimate