Raiffeisen study: Expected trend reversal on the Swiss real estate market

Raiffeisen study: Expected trend reversal on the Swiss real estate market

According to a report by www.finews.ch, the mortgage banking group Raiffeisen expects residential property prices to fall for the first time next year. The demand for owner-occupied residential property remains significantly below the level of recent years, and fewer home transactions are taking place. In some regions, falling prices for condominiums can already be observed over the year, although this is not yet a clear trend.

The forecast turnaround depends on whether the development spreads to other regions and consolidates over several quarters. At the same time, the number of properties offered for sale is increasing, which is reflected in the increasing number of online advertisements and vacant homes. This could lead to supply and demand settling at lower levels.

However, Raiffeisen assumes a “soft landing”, with price declines remaining limited due to the tight supply. The report notes that condominium prices rose 0.5 percent in the third quarter, while single-family homes rose 2.1 percent.

These developments suggest that residential property prices will remain stable or only decline moderately for the time being. Nevertheless, it remains to be seen how the situation will continue to develop and whether a trend reversal in the real estate market is actually imminent.