Prices on the real estate market continue to rise
- 01 Feb 2024 10:30 am CET
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Whether you rent, own or live in a second home, a roof over your head is becoming increasingly expensive. Prices for home ownership, second homes and rental apartments continued to rise in 2023. And the real estate experts at Wüest Partner also expect prices on the real estate market to rise again this year.
According to the "Immo-Monitoring" report published by Wüest Partner on Thursday, prices rose across the entire market in 2023. Prices for condominiums rose by an average of 3.0 percent in Switzerland, single-family homes by 1.5 percent, second homes by 6.6 percent and single-family homes for second use by a whopping 10 percent. Meanwhile, according to Wüest Partner, rents rose by an average of 4.7% across Switzerland in 2023.
High demand with tight supply
According to Wüest Partner, condominiums are still showing "astonishing vitality" despite the rise in interest rates and prices. This is mainly because demand, measured by the number of search subscriptions, rose again in the second half of the year.
Real estate experts therefore expect prices in this segment to rise again by 1.2% this year. Demand for single-family homes has also risen again recently due to falling financing costs.
However, this is also partly due to the lack of alternatives on the rental housing market. This is because the supply of rental apartments is becoming increasingly scarce: "There is currently no sign of the market easing," it says. Further rent increases of 3.7 percent are therefore expected in 2024.
Prices for second homes are exploding
Buying a second home became even more expensive last year. Prices for second homes rose by a whopping 6.6 percent in 2023 and for single-family homes for second use by as much as 10 percent.
This can also be partly explained by the popularity of working from home and the increasing attractiveness of mountain regions in summer, according to the report. In addition to the resulting increase in demand, the Second Homes Act is also drastically restricting the construction of new second homes and thus the available supply. This is further boosting price dynamics.