CRÉDIT SUISSE - SWISS PROPERTY MONITOR, 2nd QUARTER 2017

Trees never reach the sky. Both landlords and tenants are currently facing this reality: the era of steadily rising house prices and rents seems to be well and truly over. We can expect prices to stagnate over the coming quarters. House prices are expected to rise more sharply than flat prices, for reasons you can read about in our Property Market Report for the second quarter.

The end of an era

Trees never reach the sky. Both landlords and tenants are currently facing this reality: the era of constantly rising house prices and rents seems well and truly over. When it comes to home ownership, high prices and mounting financing hurdles are depriving an ever-increasing number of Swiss households of the dream of owning their own home. After 14 years of increases, however, price growth has finally levelled off and stagnation is expected in the coming quarters. Price trends for detached houses are likely to outpace those for flats, for reasons you can read about in our Property Monitor for the second quarter.

After 14 years of increases, however, price growth has finally levelled off and stagnation is expected in the coming quarters.

Swiss Real Estate Research,
Credit Suisse (Switzerland) Ltd

You will also discover how property marketing is reinventing itself by embracing augmented and virtual reality. What may at first glance seem like a digital gimmick has, in the longer term, the potential to reduce transaction costs and the risks associated with property development. Users of property valuations also face certain risks. To what extent might the expected values prove to be incorrect if the assumptions on which the valuation is based do not materialise? Monte Carlo simulations can provide answers here.

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