immo!nvest – Die Plattform für Standorte und Immobilien

Tag: Zinserhöhung

  • Future development of residential construction activity in Switzerland

    Future development of residential construction activity in Switzerland

    A study by property consultants Wüest Partner, headquartered in Zurich, concludes that residential construction activity in Switzerland will pick up in the medium term. The rise in interest rates in the years 2021 to 2023 has slowed down construction activity and thus the growth of the property stock. This has led to falling building land prices, according to a press release from the Federal Office for Housing(BWO) on the study. Building will therefore become more economical again in the medium term. In addition, the higher reference rate for rents has increased income. This is also stimulating construction activity.

    The housing market is currently in a transitional phase, after which equilibrium will be restored. However, the expected increase in construction activity is likely to be lower than before the interest rate hike. In March, the Swiss National Bank lowered the key interest rate again from 1.75 per cent to 1.5 per cent.

    Wüest Partner conducted the study “Rise in interest rates: effects on residential construction and prices” on behalf of the BWO. It analysed the development of interest rates and construction activity between 2021 and 2023.

  • Zurich is a stronghold of long-term tenants

    Zurich is a stronghold of long-term tenants

    Regulations on the rental property market protect tenants from rent increases. In contrast to the almost 25 per cent increase in asking rents, existing rents have remained relatively unchanged since 2008, explains Zürcher Kantonalbank(ZKB) in a press release. According to the ZHK’s surveys, the city of Zurich is a stronghold of long-term tenants. On average, tenants here have been living in their flat for ten years, with 15 per cent even staying for 20 years.

    “Strict rent regulations make the situation easier for existing tenants, but they also create financial disincentives,” Ursina Kubli, Head of Property Research at ZKB, is quoted as saying. “Tenants stay in their flats even though they are too small, too big or no longer suitable for other reasons.” Kubli proposes better framework conditions for residential construction as a solution: “A growing supply would dampen the increase in asking rents and thus also slow down the further drifting apart of asking and existing rents.” For this year, the experts at ZKB expect asking rents to grow by 3.5 per cent across Switzerland.

    The ZKB experts expect prices for owner-occupied homes to ease slightly. Across Switzerland, price growth should still be 1 per cent this year and 0.5 per cent next year. In the canton of Zurich, growth of 2 per cent is forecast for this year and 1 per cent for next year. “Excessive prices, as we saw during the pandemic, are no longer being paid,” explains Kubli. “The price-performance ratio has to make sense – this applies to both good and bad locations.”