FPRE: Rising prices for multi-family houses
According to the latest real estate survey by Fahrländer Partner (FPRE), purchase prices for multifamily properties are likely to rise, while rents are expected to fall. In the office market, falling rents and transaction prices are expected.
Since 2008, Fahrländer Partner AG Raumentwicklung (FPRE) has conducted a biannual internet-based survey on important parameters of the Swiss real estate market. Since summer 2012, the results of the survey have been condensed into price expectation indices and published together with HEV Schweiz. The latest results are now available.
Accordingly, the real estate industry players surveyed expect purchase prices for multi-family houses to rise, while rents will decline at the same time. Initial yields are therefore likely to fall. Rising prices are expected in the Basel, Jura, Zurich, eastern Switzerland and Mittelland regions. In the Lake Geneva region and the Alpine region, the experts expect prices to remain stable, with only southern Switzerland seeing a decline in purchase prices.
In the case of residential property, the experts expect prices to remain stable overall. Here, respondents expect residential property prices to remain stable or fall slightly. The price expectations index moved sideways from -10.6 to -9.6 points.
In the office market, respondents expect rents and transaction prices to fall throughout Switzerland. Only in Basel do the experts expect prices to remain stable or fall over the next twelve months.
