The Swiss housing market continues to rise with no signs of weakening, reported RTS this week.
According to the real estate platform immoscout24, the average price per m2 for a family home in Switzerland has risen from CHF 6,700 to CHF 7,200 over the last 12 months, a rise of 7%. Apartment prices have risen even further in some places.
According to Roxane Montagner, who works for CiFi, a company that advises real estate professionals, the trend is not about to reverse. As long as demand outstrips supply, prices will continue to rise, she said. Strict rules that prevent building on much of Switzerland’s green spaces add to the scarcity of new construction. Converting green areas to constructible land has become increasingly difficult since Swiss voters passed laws to limit new construction on green spaces.
Two other big drivers of the recent boom in prices are historically low interest rates and the continued growth of Switzerland’s population. Around 60,000 people immigrate to Switzerland annually. Low interest rates of around 1% fixed for 10 years make owning a home substantially cheaper than renting, the reality for a majority of residents, many of whom could probably never meet the 20% deposit requirement to qualify for a home mortgage.