Why homeowners don’t have to worry about a real estate crisis
The sharp rise in house and apartment prices in Switzerland is fueling fears. But the real estate market is more stable than many think – for four reasons.
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–Home ownership is getting more and more expensive. Here Erlenbach on the Zurich Gold Coast.
Photo: Martin Ruetschi (Keystone)
The real estate prices in Switzerland play crazy. With the sharp rise in prices for houses and apartments, there is also growing concern that a correction might occur.
In its annual report on financial stability, the Swiss National Bank writes that the corona pandemic has not yet had a negative impact on the real estate market – and that the positive economic forecasts speak against a correction. However, the residential property market has become more vulnerable to future shocks since the end of 2019.
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These four factors determine whether prices in the real estate market collapse:
