Raiffeisen: “Full throttle to housing shortage”
The latest publication of the Raiffeisen Banks’ economic research group for Swiss real estate does not shy away from shocking headlines: “Unstoppable housing crisis looms on the horizon” and “Full throttle towards housing shortage”.
With construction activity having reached a worryingly low level for several years, while at the same time the Swiss population is growing dynamically, Raiffeisen‘s observation is in line with our experience in the field. We are indeed heading towards a housing shortage!
The statistics speak for themselves and are clear: vacancies are shrinking rapidly from quarter to quarter, especially in the Lake Geneva region. Supply is becoming scarce, driving up rents and property prices. The financial equation is simple, because in an environment marked by high prices for building land, rigid building regulations and zoning plans, and a population that is reactive when it comes to appeals, building new housing is a path strewn with pitfalls, with the corollary that the number of units put on the market is dwindling.
Moreover, the strategy of elected officials of a reasoned densification has stalled. The recent rise in interest rates and the surge in construction costs due to inflation will not support a downward trend in rents or property sales prices. Furthermore, supply and demand still dictate prices in an environment of insufficient housing supply. Housing remains a priority for many Swiss families and will again become a political challenge. But it will be difficult to catch up.
As a result, property prices are continuing to rise, with an increase of +5.6% for single-family homes and +7.6% for condominiums in the space of a year. Thus, any family wishing to become a homeowner and having the financial capacity should not postpone its acquisition project because, although the dynamics have slowed down slightly, the new housing market remains very active.
Do not hesitate to contact us to discover the latest projects of our Ehden Collection: Les Vignes d‘Ehden in Anières and Les Rives d’Ehden in La Tour-de-Peilz.
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