UBS forecast: Swiss housing market faces dramatic changes by 2030 - financial experts warn of price increases

UBS forecast: Swiss housing market faces dramatic changes by 2030 - financial experts warn of price increases

According to a report by www.finews.ch, UBS predicts a drastic development on the housing market in Switzerland. By the mid-2030s, the permanent resident population is expected to exceed 10 million. However, this rapid population growth, driven primarily by international migration, is offset by low construction activity. UBS estimates that there will likely be a shortage of at least 150,000 apartments by 2034 due to weak construction activity.

The impact of this excess demand is expected to be reflected in rising rents and property prices. Asking rents could increase by a total of 25 to 30 percent in real terms by the mid-2030s. Real estate prices for homes and apartment buildings are also likely to rise faster than incomes. However, UBS warns against possible market interventions by politicians, as additional regulations could result in even lower construction activity.

Real estate market experts are concerned about the possible impact of the forecast development. The ongoing excess demand could lead to a further tightening of the housing market and increase the housing shortage in Switzerland. It remains to be seen how politicians and the industry will respond to these challenges.