Financial expert analyzes: Why house prices continue to rise despite higher interest rates

Financial expert analyzes: Why house prices continue to rise despite higher interest rates

According to a report by www.fuw.ch, house prices in Switzerland have continued to rise despite rising interest rates. According to data from real estate consulting firm Iazi, single-family home prices rose 1.1% quarter-on-quarter in the fourth quarter of 2023 and condominium prices rose 1.2%. Compared to the previous year, there was an impressive increase in the value of homes of 4.6%. This indicates that willingness to pay for housing remains high despite more moderate price dynamics.

The market for multi-family homes, which are often purchased by institutional buyers as investment properties, also continues to boom. The increase in value compared to the previous year is 3.7%, which is less than in previous years, but still indicates the stability of the market.

The fact that mortgage interest rates have passed their current peak following the interest rate turnaround and the Federal Parliament is dealing with an adjustment to the Environmental Protection Act, which aims to relax noise protection, could have further effects on the real estate market in the future.

These data indicate continued robust demand for real estate despite rising interest rates and more moderate price dynamics. Investors continue to show confidence in the stability of the market, indicating long-term opportunities for the real estate industry.