Expectations for Real Estate Prices Decrease
Published: Monday, Sep 25th 2023, 09:26
Actualizado el: Viernes, Oct 13th 2023, 14:12
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Many market participants expect prices to fall in the Swiss real estate market. According to a survey by the consulting firm KPMG, these expectations are dampened by risks of interest rates and regulation. The survey results of the Swiss Real Estate Sentiment Index show that negative price expectations have been recorded for all segments, locations and regions. This includes central locations such as Zurich, which have seen negative price expectations for the first time. The survey participants cited interest rate risks and regulation as the main reasons for the expected value decline in real estate. In terms of sustainability, the approximately 350 survey participants were rather disappointed. Only 18 percent of those surveyed believed that the net zero target for 2050 could be achieved. Financial experts also share the gloomy outlook. Analysts from Baader Helvea commented on the KPMG survey that they are sticking to their "cautious" assessment of the Swiss real estate market. From an investor's point of view, real estate companies with "lower risk business models and conservative balance sheets" should be preferred.
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