Cost of property increases threefold
The cost of renting or buying a home in Switzerland is three times higher than it was 30 years ago, according to a survey by Büro Wüest and Partner, compiled for the Swiss National Bank.
The survey, released on Wednesday, shows that costs are likely to increase further over the next year, and house prices are set to rise for the next decade.
Increasing consumer confidence and relatively low mortgage rates are the primary reasons given for an increasing number of Swiss buying rather than renting their homes, and seeking more living space.
In the past, about 70 per cent of Swiss lived in rented accommodation, but the figure is decreasing.
Dieter Marmet, executive vice president of Büro Wüest, told swissinfo: "People are buying more than they used to, there's a big move into the housing market, especially for single family homes, which are very sought after."
Turning to price rises, Marmet said: "Say you spent SFr300,000 on your home 30 years ago, you could sell it today for SFr900,000, but with the money you make you couldn't buy any more than in 1970."
The situation between the rental and homeowner market is similar.
"Our model tells us that in the homeowner market we can expect prices to rise by 4 to 4.5 per cent over the next 12 months, while increasing 6 per cent in the rental market," Marmet added.
by Tom O'Brien
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