Switzerland: new bubble?
Covid has turned everything upside down. Real estate too. In some countries the economic equilibrium has been totally altered (and not only).
It is known that in various areas the average prices of properties have collapsed, to allow the recirculation of the economy. In others, however, they have skyrocketed. In today's column we will analyze a very particular real estate market.
It is characterized by the presence of numerous luxury properties and in general, by a solid and strong economy. We are talking about Switzerland. Why are most national news outlets afraid that there may be a real housing bubble? If you are also curious to know more, you just have to stay on this page and read the next lines. The new column by Realigro is about to begin!
Let's start by analyzing the data available to us. The real estate index calculated by UBS increased in the second quarter of the year. It reached + 1.90 points. Although it may seem like a minimal increase, in reality the result weighs heavily on national real estate. The danger ?
To have too many properties available on the market but to lose interesting potential buyers.
But what are the main bubble risk areas? The following classification can be made by virtue of the risks related to this crisis.
1. Main risks: defined as such as house prices are no longer in line with household income and the level of rents. It is feared that they could manifest themselves in the regions of Zurich, Geneva and Basel;
2. Risks from overheating: so categorized as they would generate a strong increase in demand and also in prices. This type of risk would include the previously mentioned areas.
3. Liquidity risks: they would materialize when an excessive supply with respect to demand would be created. Which means only one thing: inability to sell. This criticality would encompass nine Swiss regions, four of which in Ticino. The only area excluded: the Bellinzonese.
But there is more. A further danger is represented by the rental market. In fact, the leasing contracts available on the market recorded a decline in prices equal to 3.2%. This would lead to the elimination of a large part of potential buyers and their transformation into underwriters of leases.
How will this situation evolve? The statistical data relating to the forthcoming Swiss real estate forecasts are not very reassuring. Indeed, it seems that if Switzerland were to continue along this line, it would really risk the much-feared housing bubble. But, if you also want to know more about this and many other topics related to real estate and above all, if you don't even want to miss the latest news on this sector, just stay tuned to our official portal.
In fact, every day we will give you all the news to share with you how international real estate is evolving day by day. And you, were you aware of this great risk that is characterizing one of the most stable and economically strong nations in all of Europe?
It is known that in various areas the average prices of properties have collapsed, to allow the recirculation of the economy. In others, however, they have skyrocketed. In today's column we will analyze a very particular real estate market.
It is characterized by the presence of numerous luxury properties and in general, by a solid and strong economy. We are talking about Switzerland. Why are most national news outlets afraid that there may be a real housing bubble? If you are also curious to know more, you just have to stay on this page and read the next lines. The new column by Realigro is about to begin!
Let's start by analyzing the data available to us. The real estate index calculated by UBS increased in the second quarter of the year. It reached + 1.90 points. Although it may seem like a minimal increase, in reality the result weighs heavily on national real estate. The danger ?
To have too many properties available on the market but to lose interesting potential buyers.
But what are the main bubble risk areas? The following classification can be made by virtue of the risks related to this crisis.
1. Main risks: defined as such as house prices are no longer in line with household income and the level of rents. It is feared that they could manifest themselves in the regions of Zurich, Geneva and Basel;
2. Risks from overheating: so categorized as they would generate a strong increase in demand and also in prices. This type of risk would include the previously mentioned areas.
3. Liquidity risks: they would materialize when an excessive supply with respect to demand would be created. Which means only one thing: inability to sell. This criticality would encompass nine Swiss regions, four of which in Ticino. The only area excluded: the Bellinzonese.
But there is more. A further danger is represented by the rental market. In fact, the leasing contracts available on the market recorded a decline in prices equal to 3.2%. This would lead to the elimination of a large part of potential buyers and their transformation into underwriters of leases.
How will this situation evolve? The statistical data relating to the forthcoming Swiss real estate forecasts are not very reassuring. Indeed, it seems that if Switzerland were to continue along this line, it would really risk the much-feared housing bubble. But, if you also want to know more about this and many other topics related to real estate and above all, if you don't even want to miss the latest news on this sector, just stay tuned to our official portal.
In fact, every day we will give you all the news to share with you how international real estate is evolving day by day. And you, were you aware of this great risk that is characterizing one of the most stable and economically strong nations in all of Europe?
