Since the health crisis, the Swiss real estate market has been largely unaffected so far. Thanks to low interest rates, demand for housing remains strong. This demand comes mainly from investors, tenants and buyers. Nevertheless, prices for owner-occupied properties are rising steadily by more than 5%, which explains the real shortage of this type of housing. On the other hand, the rental segment is experiencing an increase in vacancy rates, which allows rental rents to continue to fall.
Recalibration of consumer needs and expectations since the pandemic
Covid-19 has made the home even more important to consumers, and a greater preference for staying at home has become more important than before. The housing criteria have been modified among households: more spacious, more pleasant housing with the possibility of having an office space as teleworking has become much more practiced since the pandemic. Thus, a garden or a terrace would also be a more sought-after criterion.
Telework: The fall of office rentals
The commercial real estate sector has been more affected during this period, with demand for office space in Switzerland continuing to deteriorate with a decline of -700,000 m2 (for 2020 and 2021 combined).
This is reflected in lower rents for workspaces, so for well-located offices in the heart of the city centre, rents remain largely stable.
The stock of houses & villas for sale is falling
According to the RealAdvisor study, there is a scarcity and decrease in sales of villas and flats, which explains the increase in their prices. According to Jonas Wiesel, the number of houses for sale online has decreased by 30% to 50% in 24 months. For flats, a decrease of 20% in Geneva and Lausanne, Bern and Basel.
Forecasts : House price rises could continue to rise
According to the forecasts given by the director of the Raiffeisen banks, an increase in real estate prices can be explained above all by the demand which remains higher than the offer, this phenomenon is explained by the increase of the Swiss population which increases up to 60.000 people per annum but especially because of the pandemic.
The Swiss population could be tempted to leave the city centres, due to rising prices, for more affordable properties in the countryside. In addition, teleworking, which has become much more common today, represents a second reason to live further away, as long daily commutes will be avoided. Therefore, an increase in demand for property in this area could also take place.
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