Single-family homes become cheaper in May
Published: Wednesday, Jun 5th 2024, 08:00
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Prices for single-family homes in Switzerland fell in May. In contrast, condominiums and rental properties were offered at slightly higher prices.
Prices for single-family homes published in advertisements fell noticeably by 1.4 percent in May following the sharp rise in the previous month, according to the "Swiss Real Estate Offer Index" published on Wednesday by Immoscout24 and real estate consultancy IAZI. Prices are therefore at the same level as a year ago.
According to the press release, the continuing high price level is limiting the number of potential buyers of single-family homes due to the high financial requirements. In addition, the supply of this sought-after form of housing is limited and the supply of available houses is thinning out further. This is because, in addition to the low level of new construction activity, fewer existing properties have been on offer for some time.
Prices for condominiums increase slightly
However, the situation is different for condominiums. The prices on offer rose by 0.3 percent in May. Over the past twelve months, this resulted in a moderate price increase of 0.8 percent, according to the press release. Despite the price increase, the market for condominiums also appears to have left the very high growth rates of previous years behind.
Advertised prices for rental apartments also rose by a total of 0.4 percent across Switzerland in May. However, there were regional differences here. Apartments on offer became more expensive in the Lake Geneva region, the greater Zurich region, north-western Switzerland and central Switzerland, while prices were slightly lower in the Central Plateau, eastern Switzerland and Ticino.
IAZI and Immoscout24 expect the rental situation to remain dynamic over the course of the year due to excess demand, particularly in the centers. People in existing tenancies can breathe a little easier. Due to the strong flattening of inflation, the stabilization of general costs and the unchanged mortgage reference interest rate, they are likely to be spared further rent increases for the time being.
©Keystone/SDA
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