Swiss Real Estate Offer Index: Rental prices stable
In July 2017, residential rental prices in Switzerland remained almost unchanged compared to the previous month, with an increase of 0.3 percent.
According to the latest figures of the Swiss Real Estate Offer Index (SREOI), which is compiled monthly by ImmoScout24 in collaboration with the real estate consultancy IAZI AG, prices for residential property have also remained stable. According to the initiators, the SREOI is the first hedonic index worldwide, which is calculated and updated in real time.
Property: 3.2 percent more expensive over the year
Accordingly, condominiums became 0.5 percent more expensive in July, which, according to Martin Waeber, Director ImmoScout24, can be seen as a normalization. In June, prices in this category had still risen by almost three percentage points. On an annual basis, the SREOI shows an increase of 3.2 percent for condominiums. As of the end of July, a square metre of condominium in Switzerland cost an average of CHF 7,360.
Purchase prices for single-family homes also rose moderately in July, increasing 0.8 percent. "The situation on the interest rate front is calm and everything seems to be going its regular course at the moment," Waeber said. What the next few months will bring for the real estate sector as a whole remains to be seen.
Rents: Different trends in the major regions
In the major regions of northwestern Switzerland, Zurich and eastern Switzerland, asking rents hardly changed in July. Central Switzerland recorded the largest fall, down 1.3 percentage points on the previous month. The largest increase was recorded in Ticino with plus 1.5 percent, followed by the Lake Geneva region with an increase of 0.9 percent.
