swiss real estate market 2016 study from credit suisse

Swiss real estate market 2016

Low interest rates and a modest increase in real incomes constitute a fundamentally positive backdrop to the demand for owner-occupied housing in 2016. Demand will additionally be supported by the home-ownership aspirations of immigrants who have settled in Switzerland.

Banished from paradise: the study 

For more than ten years now, the Swiss real estate markets have enjoyed near-paradise conditions: continuously rising prices and rents, booming demand, and low vacancies against the backdrop of low interest rates. In recent years, however, there have been growing signs that other, less favourable times lie ahead. Real estate investors are no longer able to source easy returns just like that. Further support from interest rates hardly appears possible. In the future, therefore, investors will increasingly have to rely on their own services in order to generate the hoped-for returns in real estate markets.

For 2016 we expect an ongoing slowdown in the owner-occupied housing market – one that will likely be reflected in positive but weak price growth of less than 1% on a nationwide basis.

Swiss real estate market study, 2016

In order to do justice to the strong regional anchoring of the real estate markets, we offer informative factsheets at the regional level. You will find details on how to order them on page 77 of the study.

Read the full story in our annual study.

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