Banks Real estate prices continue to spiral
The dream of owning your own four walls continues to drive up prices for houses and apartments. This was revealed on Monday by two new studies.
13.01.2025, 11:27
SDA
According to the transaction price index calculated by Raiffeisen Switzerland, prices for single-family homes have risen by 4.2 percent within a year. At the same time, condominiums have become 2.4 percent more expensive.
The Swiss Real Estate Offer Index from Immoscout24 also recorded an increase over the year as a whole. The prices of single-family homes advertised in the listings were 4.5 percent higher, while the prices of condominium units were 1.7 percent higher.
Greater supply of condominiums
The stronger rise in prices for single-family homes is explained by "exceptionally low construction activity" in this segment and few offers to sell existing properties. As a result of this shortage, sellers of houses have derived continuously higher price expectations, especially since August 2024.
In contrast, the supply of condominiums has increased again over the course of the past year due to the upturn in new construction activity after a long dry spell. This has probably had a dampening effect on price expectations.
No trend reversal in sight
In the Raiffeisen Transaction Price Index, prices for single-family homes stabilized in the fourth quarter of 2024 compared to the previous quarter (-0.1%). However, this is not the start of a trend reversal, it is emphasized.
In fact, due to significantly lower financing costs and very good prospects of further falling interest rates at the start of the new year, demand is likely to increase further and prices are likely to accelerate again, Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland, is quoted as saying in the press release.
Prices in the rental market stagnate at a high level
According to the Swiss Real Estate Offer Index, rental prices for apartments also rose again in December by 1.5 percent. However, after a strong increase of over 8% across Switzerland as a whole in 2022 and 2023, there was hardly any change at a national level last year (-0.4%). This suggests that rental prices have stabilized at a high level for the time being, according to the press release.
The Raiffeisen Transaction Price Index is published quarterly at the beginning of a new quarter. It measures the price development of owner-occupied residential property in Switzerland on the basis of Raiffeisen's change of ownership data and the Swiss Real Estate Datapool (SRED). The Swiss Real Estate Offer Index is compiled by Immoscout24 in collaboration with the real estate consultancy IAZI. It analyzes the advertisements on the Immoscout24 online marketplace.
