immo!nvest – Die Plattform für Standorte und Immobilien

Tag: Preissteigerung

  • Price increases and regional declines in the 1st quarter of 2024

    Price increases and regional declines in the 1st quarter of 2024

    The latest analysis by Fahrländer Partner Raumentwicklung (FPRE) shows that prices for owner-occupied flats in Switzerland have risen by 0.8 per cent compared to the previous quarter, with the strongest growth in the lower segment at 1.9 per cent. There was also an increase in single-family homes, which was particularly pronounced at 1.8 per cent compared to the previous quarter and 5.5 per cent compared to the same quarter of the previous year. The upmarket single-family home segment in particular saw the strongest increase at 3.0 per cent.

    Despite these nationwide increases, there are regional differences: In the Basel, Jura and Lake Geneva regions, prices for mid-range condominiums fell, while prices rose in southern Switzerland, the Alpine region, the Central Plateau and eastern Switzerland.

    This price dynamic is also reflected in the reaction of households to the latest interest rate cut by the Swiss National Bank (SNB). The reduction of the key interest rate in March 2024 from 1.75 to 1.5 per cent, which took place before the interest rate decisions of the US and European central banks, was aimed at taking into account the reduced inflationary pressure in Switzerland and stabilising the Swiss franc.

    Stefan Fahrländer from FPRE comments that despite ongoing global uncertainties, the interest rate cut could potentially provide positive impetus for demand in the affected regions. In the long term, FPRE sees continued high demand coupled with low construction activity as a driver for further increases in residential property prices.

  • Analysis and outlook for construction prices

    Analysis and outlook for construction prices

    The Construction Price Index 2023 reveals a complex dynamic in Swiss building construction, with moderate price increases influenced by a mix of international market conditions, currency effects and local economic factors. The industry faces challenges, including a changing labour market and declining construction activity, which require strategic adjustments. The report provides key insights for property industry management professionals to make informed decisions and anticipate future developments.

    The analysis of material prices for building construction shows a differentiated development: while the KBOB material price index only recorded a slight increase of 0.6 per cent in November 2023 compared to the previous year, a look at individual materials reveals significant differences. For example, prices for reinforcing steel fell sharply by 28 per cent, while fresh concrete and bricks saw price increases of 9.5 and 36 per cent respectively. These price developments reflect a normalisation of international market prices and the effects of the appreciation of the Swiss franc, which reduced import costs for building materials. However, this was offset by rising energy and fuel prices, which affected the cost of materials.

    The situation on the labour market in the construction industry and wage trends remain of strategic importance. Following a temporary increase in job vacancies in spring, the rate stabilised at 2.1% in the third quarter of 2023 and thus remains above the ten-year average. Demographic trends are intensifying the challenges facing the construction industry, which is contributing to continued upward pressure on wages.

    Construction activity, particularly in the area of residential and office space, has declined continuously since 2021. Investment in new building permits has fallen compared to the average values of the last five years, which is due to high financing costs and a subdued economic outlook. These developments could lead to increased price competition and impact profitability in the construction sector.