Price expectations for Swiss real estate are falling
Many market participants expect falling prices on the Swiss real estate market. According to a survey by the consulting firm KPMG, the outlook is clouded by interest rate risks and regulation.
The experts at KPMG came to this conclusion based on the survey results for the Swiss Real Estate Sentiment Index. According to the information, this reflects the expectations of professional investors, developers, consultants and evaluators about the Swiss real estate investment market.
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Accordingly, the latest survey resulted in negative price expectations for all segments, locations and regions. According to the survey published on Monday, price expectations in central locations such as Zurich were negative for the first time. Those surveyed cited interest rate risks and regulation as the main reasons for the expected decline in real estate values.
The approximately 350 survey participants were also rather disillusioned when it came to sustainability. Only 18% of those surveyed believe that the net zero target for 2050 can be achieved.
The gloomy outlook is also shared by financial experts. For example, the analysts at Baader Helvea write in a comment on the KPMG survey that they are sticking to their own “cautious” assessment of the Swiss real estate market. From an investor’s perspective, real estate companies with “lower-risk business models and conservative balance sheets” should be preferred.
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