immo!nvest – Die Plattform für Standorte und Immobilien

Tag: Wohnkosten

  • Demand for residential property picks up

    Demand for residential property picks up

    Raiffeisen Switzerland sees a turnaround in the residential property market. The banking group examined developments on the property market in its study “Real Estate Switzerland – 3Q 2024″. “Demand for residential property has largely recovered following its slump in the wake of the sharp rise in interest rates,” Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland, is quoted as saying in a Raiffeisen press release on the study. “In addition to the return of the housing cost advantage over renting as interest rates fall again, excess demand is now also spilling over from the rental property market into the owner-occupied property market.”

    However, according to the experts at Raiffeisen Switzerland, the resulting increase in supply will not be met by construction activity, but only from existing properties. They therefore expect that the shortage on the residential property market will only be alleviated in the short term. “The more liquid supply and more confident buyers are beginning to be reflected in a higher number of property changes,” explains Hasenmaile. The majority of properties are being sold at the prices desired by the sellers. In the medium term, the chief economist at Raiffeisen Switzerland therefore expects prices to rise more strongly again.

    According to the experts, an increasing supply of new buildings is being countered by the densification process, in which new residential buildings are primarily being built in place of old properties. Hasenmaile believes that the vacancy rate on the rental flat market will soon fall below 1 per cent. The increase in annual growth in asking rents to 6.4 per cent in the second quarter of 2024 is also evidence of excess demand.

  • Cross-border commuter boom in Geneva – growth and housing shortage

    Cross-border commuter boom in Geneva – growth and housing shortage

    The canton of Geneva is experiencing a sustained increase in the number of cross-border commuters who live in France and commute to work in Geneva. Between the first quarter of 2021 and the first quarter of 2024, the number of these cross-border commuters rose by 33,000 to a total of 399,000. This development was boosted by the Léman Express and the liberalisation of home office rules in 2023.

    Rising share of cross-border commuters in the labour market
    The number of cross-border commuters from France working in the Lake Geneva region has risen by 26% in the last three years. The share of cross-border commuters in the workforce rose from 13.2 percent in the first quarter of 2021 to 14.9 percent in the first quarter of 2024. This is due to the booming labour market, the housing shortage in Geneva and the more attractive housing costs in neighbouring France.

    Impact of the Léman Express
    The Léman Express, which opened in 2020, has made cross-border commuting much easier by reducing the journey time between Annemasse and Geneva’s main railway station by around 40 per cent. 70,000 commuters now use the Léman Express every day, giving it a market share of 43 per cent. This has led to a construction boom around the new railway stations and increased the attractiveness of cross-border commuting.

    Housing market in Geneva and neighbouring regions
    Geneva has been struggling with an acute housing shortage for years. The vacancy rate was just 0.4 per cent in 2023, while the supply rate of rental flats fell from 5.3 per cent to 4.2 per cent between 2021 and 2023. In comparison, housing costs are significantly lower in France, which encourages many workers to live there. However, this has also caused prices to rise in these areas.

    Future developments and challenges
    The population growth trend in the French part of the Geneva metropolitan area is expected to continue. From 2024 to 2030, annual population growth of 1 per cent is expected in the canton of Geneva, while the neighbouring French arrondissements are likely to exceed this figure. This will continue to pose challenges for infrastructure and the housing market on both sides of the border.

    The Lake Geneva region faces the challenge of reconciling the dynamic labour market and the increasing number of cross-border commuters with the existing housing shortage. Innovative transport solutions such as the Léman Express and the liberalisation of home office regulations play a key role, but also require long-term strategies to tackle the housing market problem and ensure the sustainable development of the entire region.

  • Study on the role of spatial planning in rising housing costs

    Study on the role of spatial planning in rising housing costs

    The study “Causes of rising housing costs in Switzerland with a focus on spatial planning” makes it clear that spatial planning plays a moderating role in the real estate market: it has an impact on construction activity and thus influences housing costs. The increase in demand for housing, on the other hand, is a driving factor in rising housing costs. Among other things, the downsizing of households, population growth and rising individual housing consumption play a role here.

    Spatial planning can have an influence here. It limits the availability of building land and zoning capacities. In this way, it controls how flexibly the supply of housing can adapt to changing demand. If spatial planning is too strict, the supply can react less flexibly to the strong increase in demand. This can lead to higher housing costs in the long run.

    Internal development as a solution

    However, one of the tasks of spatial planning is to limit urban sprawl and protect the landscape. The study identifies inner development as an instrument that allows both the protection of the landscape and an increase in the supply of housing. The study also shows that rezonings have a price-dampening effect in areas where the utilisation of building zones is already high. Upzoning is defined as the expansion of possible uses within a building zone. This is therefore an effective means and, if used in a targeted manner, can have an optimal effect. The study results also suggest a connection between high housing costs and high planning and process costs. Lengthy approval and objection procedures also contribute to increased costs.

    Conference on housing and spatial development

    As part of the Swiss Housing Days 2023, which will take place from 3 to 7 November 2023 in Biel, a panel of experts will discuss on 6 November how internal development can be shaped so that more affordable housing is created in the process. More details and registration at www.bwo.admin.ch.