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REAL ESTATE NEWS

1

Swiss Real Estate Market Remains Attractive

According to Ernst & Young's (EY) trend barometer, the Swiss real estate market continues to be attractive to investors in 2024. Artificial intelligence and demographic changes are playing an increasingly significant role. Investors are increasingly seeking sustainable and technologically advanced real estate projects, while demographic shifts are influencing the demand for specific types of housing. These factors keep the market rewarding despite high prices.

The emphasis on technology and sustainability is driving innovation in building and management practices, making Swiss real estate a pioneering sector in terms of ecological and smart building solutions. As demographics evolve, there is growing interest in properties that cater to older populations, as well as mixed-use developments that integrate residential, commercial, and leisure facilities, adapting to changing lifestyle needs. This dynamic landscape offers diverse opportunities for investment, making Switzerland a compelling choice for domestic and international investors alike.

2

UBS Bubble Index Declines

The UBS Swiss Real Estate Bubble Index fell to 0.95 points in the first quarter of 2024, lowering the risk of a real estate bubble from "elevated" to "moderate." Despite a 0.7% increase in home prices during the quarter and a 3.2% rise year-over-year, the risk remains low due to weaker price dynamics and falling interest rates.

This reduction in the index reflects a stabilization in the market, likely influenced by regulatory measures and economic conditions that favor a balance between housing supply and demand. The cooling of the real estate market suggests a healthier adjustment away from the rapid price increases seen in previous years, providing a more sustainable environment for both buyers and investors. As the market continues to stabilize, stakeholders might find it an opportune time to reassess their strategies in light of these evolving conditions.

3

Buying More Affordable Than Renting Again

Due to decreasing mortgage rates and rising rents, purchasing real estate is becoming more attractive again. According to a UBS study, the costs of acquiring property are falling, making buying cheaper than renting in some regions of Switzerland. This trend is particularly noticeable in cantons such as Vaud, Fribourg, and Valais. Those considering purchasing a property should seize this opportunity, as demand—and potentially prices—could rise again.

This shift could lead to a more dynamic real estate market, encouraging potential buyers who have been hesitant due to high costs. Additionally, the current financial climate presents a favorable scenario for first-time buyers and investors alike, potentially boosting the overall economy as more people invest in property. As the market adjusts, the benefits of owning over renting could become more pronounced, influencing long-term housing decisions across Switzerland.

4

SNB Cuts Interest Rate to 1.25%

The Swiss National Bank (SNB) lowered its key interest rate again on June 20, this time by 0.25 percentage points to 1.25%. The goal is to support the economy and weaken the Swiss franc, thereby boosting the export sector. This is the second consecutive rate cut, a response to decreasing inflationary pressures. However, the SNB cautions that there is limited room for further rate reductions.

This move reflects the central bank's proactive stance in addressing economic headwinds while acknowledging the complexities of monetary policy in a low inflation environment. The decision is part of a broader strategy to mitigate the risk of economic slowdown and maintain price stability, while keeping an eye on global economic developments that might impact Switzerland's financial stability. The SNB remains committed to adjusting its policies as necessary to ensure sustainable economic growth.

REAL ESTATE NEWS

1

Swiss Real Estate Market Remains Attractive

According to Ernst & Young's (EY) trend barometer, the Swiss real estate market continues to be attractive to investors in 2024. Artificial intelligence and demographic changes are playing an increasingly significant role. Investors are increasingly seeking sustainable and technologically advanced real estate projects, while demographic shifts are influencing the demand for specific types of housing. These factors keep the market rewarding despite high prices.

The emphasis on technology and sustainability is driving innovation in building and management practices, making Swiss real estate a pioneering sector in terms of ecological and smart building solutions. As demographics evolve, there is growing interest in properties that cater to older populations, as well as mixed-use developments that integrate residential, commercial, and leisure facilities, adapting to changing lifestyle needs. This dynamic landscape offers diverse opportunities for investment, making Switzerland a compelling choice for domestic and international investors alike.

2

UBS Bubble Index Declines

The UBS Swiss Real Estate Bubble Index fell to 0.95 points in the first quarter of 2024, lowering the risk of a real estate bubble from "elevated" to "moderate." Despite a 0.7% increase in home prices during the quarter and a 3.2% rise year-over-year, the risk remains low due to weaker price dynamics and falling interest rates.

This reduction in the index reflects a stabilization in the market, likely influenced by regulatory measures and economic conditions that favor a balance between housing supply and demand. The cooling of the real estate market suggests a healthier adjustment away from the rapid price increases seen in previous years, providing a more sustainable environment for both buyers and investors. As the market continues to stabilize, stakeholders might find it an opportune time to reassess their strategies in light of these evolving conditions.

3

Buying More Affordable Than Renting Again

Due to decreasing mortgage rates and rising rents, purchasing real estate is becoming more attractive again. According to a UBS study, the costs of acquiring property are falling, making buying cheaper than renting in some regions of Switzerland. This trend is particularly noticeable in cantons such as Vaud, Fribourg, and Valais. Those considering purchasing a property should seize this opportunity, as demand—and potentially prices—could rise again.

This shift could lead to a more dynamic real estate market, encouraging potential buyers who have been hesitant due to high costs. Additionally, the current financial climate presents a favorable scenario for first-time buyers and investors alike, potentially boosting the overall economy as more people invest in property. As the market adjusts, the benefits of owning over renting could become more pronounced, influencing long-term housing decisions across Switzerland.

4

SNB Cuts Interest Rate to 1.25%

The Swiss National Bank (SNB) lowered its key interest rate again on June 20, this time by 0.25 percentage points to 1.25%. The goal is to support the economy and weaken the Swiss franc, thereby boosting the export sector. This is the second consecutive rate cut, a response to decreasing inflationary pressures. However, the SNB cautions that there is limited room for further rate reductions.

This move reflects the central bank's proactive stance in addressing economic headwinds while acknowledging the complexities of monetary policy in a low inflation environment. The decision is part of a broader strategy to mitigate the risk of economic slowdown and maintain price stability, while keeping an eye on global economic developments that might impact Switzerland's financial stability. The SNB remains committed to adjusting its policies as necessary to ensure sustainable economic growth.

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The Swiss Property Owners Association is a free and dynamic association for all property owners in Switzerland—and those who aspire to be. With no political agenda, our guiding principle “Invest intelligently in real estate” supports our members throughout the entire life cycle of properties. From targeted acquisition through careful holding to optimized sale.

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Richard’s Favorites: Recommended by the President

A 16th-century Old Town apartment? A house with direct lake access? A secluded, abandoned farmhouse? The properties curated personally by Association President Richard Auf der Maur are not necessarily expensive, but they are definitely exciting and unique.

Richterswil
For lovers of comfort, elegance, and luxury, this is the ideal home.
Richterswil
For lovers of comfort, elegance, and luxury, this is the ideal home.
Porza
On an ideal hillside location amidst vineyards, we are selling a fantastic villa in Porza with views of Lake Lugano.
Porza
On an ideal hillside location amidst vineyards, we are selling a fantastic villa in Porza with views of Lake Lugano.
Ruswil
This three-story maisonette in Ruswil impresses with its unique interior design, generous space, and much more.
Ruswil
This three-story maisonette in Ruswil impresses with its unique interior design, generous space, and much more.
Gstaad
In the picturesque Gstaad, this charming 5.5-room vacation home is for sale.
Gstaad
In the picturesque Gstaad, this charming 5.5-room vacation home is for sale.
Epalinges
For life enthusiasts: In Epalinges, we are offering an exquisite villa with 8 rooms, a garden, and a saltwater pool on a 1,000 m² plot for sale.
Epalinges
For life enthusiasts: In Epalinges, we are offering an exquisite villa with 8 rooms, a garden, and a saltwater pool on a 1,000 m² plot for sale.
Show all properties

Resources for every stage of your journey home

Discover current and informative articles about real estate. Here, you will find detailed analyses, practical tips, and the latest trends.

Cultivating a Balanced Home Environment with Feng Shui

There are countless approaches to making your house feel like a home, from creating gallery walls to integrating your hobbies into your decor. One such approach is the practice of feng shui, an ancient philosophy designed to cultivate a space where individuals feel balanced, joyful, and inspired. Tips from feng shui experts can guide you in aligning your living space with the natural world, helping to foster a nurturing and supportive environment.
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Straight to the Point: How Your Words Can Convince Potential Buyers

In an era where most property buyers begin their search online, the listing often serves as the first point of contact with a property. The right words can be crucial: they can spark a potential buyer's interest or cause them to simply scroll past. A well-crafted property listing can make the difference between a quick sale and a property that lingers on the market.
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