Further general price increase
Living space in Switzerland remains popular and sought-after. This will not change even if the last digit in the calendar changes to a 6. Demand continues to rise, partly thanks to population growth and attractive conditions on the mortgage market (no significant rise in the base rate expected). Combined with construction activity that is still too low, this will lead to a further increase in transaction prices.
New builds and refurbished properties
The price increase particularly affects refurbished properties in good condition. The abolition of the imputed rental value (implementation from 2028, effect already noticeable on the market) will remove the additional tax burden. If refurbishments are not particularly necessary, this will generally make such properties more affordable and prices will continue to rise accordingly.
Alternative old building?
However, if you also keep an eye out for older properties on the market, there is certainly hope that you will still be able to acquire them at reasonable prices. As it will no longer be possible to deduct renovations from taxes in the future, many buyers will think carefully about whether they really want to invest. In the case of older properties, the potential savings often far outweigh the loss of notional income. In addition, mortgage interest is only deductible to a limited extent.
This opens the door for buyers who are prepared to compromise on standard and condition for a certain period of time, or for do-it-yourselfers who can make the refurbishment cheaper than others. They could benefit from stagnating or even falling prices.
Conclusion
The Swiss property market remains competitive and the price carousel continues to turn upwards. Old buildings could offer an exciting alternative for a limited group of potential buyers
