Global Property

Slowdown inevitable for house prices in Switzerland

en.ppostnews.com : Trend: house prices up y-o-y 1.1% to Q2
There have been 14 years of price growth in Swiss residential real estate.  A slowdown is almost inevitable.
Analysis: higher prices and tougher lending rules are restraining property ownership. The rental accommodation market is in downturn, vacancies and time-on-market are set to increase further.
Rents, rental yields: yields are lowish, at around 3.27% 
Zurich apartments are expensive, at around €11,467 per sq. m.
Switzerland: city centre apartment, buying price, monthly rent (120 sq.m.) 
 Buying price  Rent per month  Yield
 Zurich  €1,446,840  €3,946  3.27%

Recent news:  In June the Swiss State Secretariat for Economic Affairs (SECO) downgraded its 2017 economic growth forecast by 0.2% to 1.4%.  However it said “Economic growth is expected to accelerate substantially throughout the year due to favourable economic conditions at an international level,” and forecast that GDP would expand by 1.9% in 2018.

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