Houses and apartments are entering the market with prices up 1.5% this quarter. Villas and condominiums are not far behind, showing similar growth: over the year 2023, a remarkable 4.9% price increase was recorded. 2024 is off to the best possible start!
Even income properties have seen their values rise by 0.6% this quarter and 4.3% over twelve months. Despite rising financing costs, transactions remain steady, with strong expectations from both buyers and sellers.
Promising Outlook
The momentum continues with foreign investments in income properties absorbing interest rate costs through rent adjustments. Demand remains strong with only 1.2% of housing units vacant in Switzerland, especially in densely populated regions.
A Stable Market
The positive trend is also maintained thanks to the Swiss National Bank holding interest rates steady, stabilizing mortgage rates. This provides some relief in the Swiss real estate market. The interest rate stability, maintained at 1.75% by the Swiss National Bank, regulates the real estate market. Fixed-rate mortgages are expected to remain between 2.5% and 3%, while money market mortgages would approach this range.
Rising Demand
Strong demand, amplified by sustained immigration, generates a growing need for additional housing. With around 60,000 new arrivals up to the end of August 2023 – equivalent to the population of Lugano – this represents an estimated need for about 30,000 additional housing units, a demand expected to grow further by year-end.
The Swiss real estate market continues to navigate skillfully despite challenges, supported by persistent demand, relative stability, and remarkable adaptability to economic fluctuations.
Performance on “Imvesters” Properties
In 2023, Imvesters experts carefully analyzed and filtered the best market opportunities (location, condition, rental potential, etc.). An investment opportunity in La Chaux-de-Fonds (CFF train station) with over 9% yield was highly successful given its proximity to all amenities, attractive yield (excluding capital gain (4.3% over one year (first paragraph)), and rental potential.
But the Most Important Thing Is You!
Schedule an appointment today with one of our experts to focus exclusively on stable investments with yields of 6% and above.
