Falling rents, rising purchase prices, cheap mortgages – an overview of the real estate market in five points.
Published: 12/30/2020, 3:43 pm—
–Rents will fall in rural areas: Housing development in Zumikon, Canton of Zurich.
Photo: Moritz Hager
The real estate market has so far got through the Corona crisis lightly. Despite the economic uncertainty, the demand for residential property grew. But not in the cities, but in the rural regions. Rental apartments are also still in demand. The bigger the better is the motto at the end of the year. If home office work becomes established, this trend is likely to continue in 2021. What you need to know for the coming year:
Rents are falling, large apartments are more popular
The year 2020 again showed a record of vacancies. The reason for this has been the same for years: the persistent low interest rate environment is putting investors under pressure. Real estate remains a reliable form of investment. Many new apartment buildings have been built in Switzerland in recent years. Since building land in the cities is scarce and expensive, but still available in the countryside, construction was carried out where no one wanted to live. The apartments were difficult to rent or remained empty. As a result, rents in these regions began to slide. This trend will continue in 2021: The real estate consultancy Wüest Partner is forecasting a 1.2 percent decline in apartment rents. Investment properties also remain in demand.
