Swiss real estate: psychological risks

Switzerland, which has always been recognized as a neutral nation, has also been affected in this pandemic period. Not only on an economic level, but above all in our sector, the real estate sector. Needless to say, Coronavirus has also affected Switzerland ... but how? What are the dimensions of this pandemic? Let us find out together on the basis of the data available to us.
In the first quarter of 2020, the Covid crisis had an almost zero impact on real estate. Suffice it to say that the planned transactions have been completely concluded and the prices of residential properties (occupied) have decreased slightly. Only 0.43%. In the first weeks of April, however, the psychological factor was playing a bad joke.

Many potential investors took a step back before interfacing with the real estate market. In fact, a higher level of security is expected, which can allow a decidedly more targeted and aware action. Far from market imbalances.

What is this psychological risk characterized by? For investors, these are issues relating to two main factors:
- With falling prices
- To the overheating of the market

And although it is only two variables, it seems that the Swiss real estate market is extremely tied to these potential critical issues.
But how will Swiss real estate develop in the coming months?

There is a plan, but post-recession issues do not ensure that it can be fully achieved. Transactions on the market will however be extremely limited. At a later stage, a greater opening will develop.
It is not surprising that in Switzerland there has been a blockage resulting not so much from the economic - financial, but psychological - social situation. In a country where the regulatory system, albeit extremely rigid, is one of the most respected in the world by citizenship, one understands how, the absence of stability, brings in the psychology of the individual a sense of disorientation and disorientation.

The Swiss real estate market is also among the most varied. But you know, the basic prices are still higher than the European average, with a truly exclusive luxury segment. However, there is no shortage of investors who, aware of the strength of the Swiss real estate, decide to pour their savings in this sector. Either for a simple investment for the future, or for being themselves the generators of an offer that can attract interested customers.

In general, it is hoped that this blockage will be resolved as soon as possible, allowing Swiss real estate to recover share. Alternatively, should the situation persist, a stagnation in the sector cannot be excluded. A situation that is not very clear, but hopefully, can evolve in the best way.
Unfortunately worldwide, we are witnessing an unprecedented crisis. So, it is not surprising that even such a strong state can suffer a backlash.
What is certain is that we at Realigro will continue to update you on our portal.

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