Study: Rising prices for investment properties
Real estate experts expect that the prices of investment properties will continue to increase. This is the conclusion of a study by mortgage broker Moneypark, for which around 80 real estate agents, mortgage and financing experts were surveyed.
While the experts expect prices for residential property to remain constant or fall slightly, they believe there is further potential for price increases for investment properties in the residential sector. Almost every second respondent expects prices to rise by between 0.5 and 3.5 percent in the coming months. Luxury and commercial properties, on the other hand, are viewed more skeptically - here, the experts expect prices to tend to fall.
88 percent of respondents rated the purchase of real estate as more attractive than investing in equities due to the higher return and/or lower volatility. According to the survey, the lower liquidity is only a reason for just under four percent to rate real estate as less attractive.
Real estate experts expect residential construction activity to remain constant in the coming months. Following the strong growth in construction activity in recent years, a stabilization at a high level is now expected. The implementation of the mass immigration initiative and, regionally, the second-home initiative are likely to have a significant dampening effect.
The experts do not expect any acute rise in interest rates for either Libor or fixed-rate mortgages. The expansive monetary policy of the European Central Bank will help determine the interest rate structure in Switzerland, and the yield curve will therefore remain flat for some time to come. (ah)
