Housing market: Offer prices stable in July

Despite the deteriorating economic outlook, the Swiss Real Estate Offer Index remained stable in July. According to the index, which is compiled by SMG Swiss Marketplace Group in cooperation with real estate consultancy IAZI, price expectations on the supply side did not decline despite the SNB's key interest rate hike. For single-family houses were asked 0.2% more than in the previous month. Condominiums were even advertised at 0.7% higher prices. The authors of the index see stable demand for housing due to positive net immigration. Nevertheless, a slowdown in price development is likely.

Rents also remain stable

Advertised rents also increased slightly in July at 0.3%. Significantly higher rental costs could soon filter through, due to rising energy prices. As interest rates rise, investor interest in building new investment properties could wane, leading to a tighter supply of rental apartments. (aw)