Investors expect record prices for residential property
The players in the real estate market are assuming that prices for residential real estate will rise sharply. Falling prices are expected for retail properties and office space. This is evident from the current Swiss Real Estate Sentiment Index from KPMG.
The players in the real estate market are confident about the future. The mood has brightened significantly compared to the pandemic year 2020, writes KPMG in a message on the consulting company’s current Swiss Real Estate Sentiment Index. In the case of residential property in particular, the respondents assume that prices will rise sharply. The corresponding sub-index has reached a new high of 119.2 points, according to the announcement.
KPMG analysts explain that the supply of residential real estate is becoming more and more scarce. Here the sub-index fell from 108.0 points in the previous year to 137.1 points. Price increases and shortages show that “market participants regard the residential segment as the clearly preferred real estate investment even more than before”.
When it comes to prices for office space, the market players are expecting only a slight drop in prices. Compared to the previous year, the expected decline in prices has weakened, the announcement explains. “The users have already adjusted to the new conditions, which is why the focus is currently not on reducing space,” Beat Seger, partner and real estate expert at KPMG, is quoted there. Only in the case of retail space do the respondents continue to assume that prices will fall significantly.
From a regional perspective, the market players for the Zurich and Lake Geneva regions are expecting significantly higher prices on the property market. Slight price drops are expected in Eastern Switzerland. As in previous years, expectations for Ticino remain clearly negative.