That pleases everyone who is looking around for their own home! The turning point in the real estate market has arrived: after a period in which the prices for houses and apartments shot up to extreme heights, the end of the price boom is now approaching, writes the “SonntagsZeitung”. Experts anticipate a slowdown in the coming years. Real estate expert Matthias Holzhey from UBS predicts that price growth could even approach zero by 2024.
The reasons for this development can be found in the currently rapidly increasing mortgage interest rates. Due to the Ukraine war, there is also great economic uncertainty, a lack of raw materials, inflation – factors that affect the decision to buy a property. According to a study by Credit Suisse, renting is cheaper than buying for the first time in 13 years.
Oil and gas are becoming more expensive
Donato Scognamiglio of the real estate consultancy Iazi also predicts that demand for home ownership will take a hit. But: “The damper will not be big enough to push prices down.” Because the supply on the Swiss real estate market, especially for single-family homes, is scarce, and demand will remain high despite the downturn.
“Because oil and gas are more expensive, the ancillary costs are rising. And anyone who builds has to be prepared for significantly higher costs of up to 15 percent,” he says to the “SonntagsZeitung”. But that’s not all: steel has also become massively more expensive, which is causing financial difficulties for many builders. And discourages prospective buyers from buying a property. This, in turn, does not allow the prices to skyrocket any further. Or even sink. (pbe)
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