Housing: High discounts for luxury apartments
Across Switzerland, the prices of luxury houses and apartments are eroding, reports the Tages-Anzeiger. As the newspaper reports, citing several market observers, discounts of 15 to 30 percent are now regularly being granted.
The locations around Lake Zurich as well as the high-price region of Lake Geneva and Ticino are particularly affected. The price erosion is hitting developers particularly hard; some are "up to their necks in water," as MoneyPark CEO Stefan Heitmann explained to the Tages-Anzeiger says. According to an unnamed real estate expert, distress sales on the part of developers of construction projects are already accumulating.
Donato Scognamiglio of real estate consulting firm Iazi believes it is possible that the price corrections in luxury properties will spread to the entire market. "The discounts on luxury properties could be the beginning of the turnaround in the Swiss real estate market," he tells the Tages-Anzeiger. (ah)
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