27
Mar
Rather favourable conditions for Swiss real estate in 2017
Likely easing of credit standards could counter rising interest rates. Investment funds’ high premiums should be put into perspective.
Key points
- Don’t overestimate the ‘interest rate’ factor: other elements must be considered
- Supply remains limited: scarcely 40,000 units built in Switzerland in 2016
- The February 9 vote will not change the demographic outlook overall; an aging population and smaller households will boost demand
- Likely easing of credit standards: the 5% ‘golden rule’ could be called into question
- In spite of rising premiums, 2017 will likely also be favourable to real estate investment funds
