Swiss real estate market: Iazi warns of the dangers of rising interest rates and loss of value

Swiss real estate market: Iazi warns of the dangers of rising interest rates and loss of value

According to a report by www.finews.ch,

The Swiss real estate market has adapted to the interest rate turnaround better than other countries, but there are still risks, according to the real estate specialists at Iazi. The Swiss National Bank's key interest rates have made house and real estate purchases significantly more expensive, which has led to a reduction in transactions and mortgage agreements. Prices for single-family homes and rents have continued to rise, and the reference interest rate is expected to continue rising. Nevertheless, Switzerland is not threatened with a collapse in prices for homes or condominiums due to higher interest rates, nor is the rental market expected to ease.

Iazi boss Donato Scognamiglio emphasized that Switzerland was a special case compared to its neighboring countries, but that there were dangers here too. A possible loss of value of real estate, similar to that in Germany, would have dramatic consequences for buyers, especially for investment properties. Nevertheless, immigration supports Switzerland's economic environment, especially in the centers, and helps protect the real estate market from a crisis.

It remains to be seen how interest rates and the real estate market in Switzerland will develop, but current data suggests that demand for real estate will remain high, especially in centers, despite increased interest rates.

Source: www.finews.ch