الأربعاء, 24 يناير 2024
Swiss Interest Rate Increase – Minor Effect on Investment Property Values
The recent Swiss interest rate increase, instigated by the Swiss National Bank (SNB), is anticipated to mildly affect the market value of investment properties in the short term. This insight emerges from a survey conducted by EY involving 96 real estate investors.
Despite the Swiss interest rate increase, Switzerland’s allure for real estate investments remains robust. Notably, a cautious approach is emerging: Approximately two-thirds of participants predict stagnant investment volumes for 2024, influenced by interest rates and regulatory constraints, explains EY.
Interestingly, only 18% foresee a reduction in investment volumes for 2024, a significant decrease from the previous year’s sentiment. In terms of residential real estate, price dynamics are diverse. For prime location residential properties, 55% of investors foresee stable prices, and 39% predict a decrease. A mere 6% anticipate a rise in prices.
Conversely, expectations for residential properties in secondary locations and peripheral areas are predominantly towards declining prices, with minimal optimism for price increases. This outlook mirrors that of office spaces, grocery, and DIY stores.
However, a contrasting trend is observed in logistics properties in prime locations, where 50% of investors expect price hikes. For logistics buildings in secondary locations, 30% still foresee price increases, whereas over half anticipate price stability.
This nuanced understanding of the impact of the Swiss interest rate increase on different real estate sectors provides valuable insights for investors navigating the Swiss market.
More changes by the SNB can be found here.
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