Privately used residential property is becoming more expensive
In its index for the second quarter, Raiffeisen Switzerland shows a continued increase in costs for privately used residential real estate. The sharpest price jumps are recorded for single-family houses in rural areas and condominiums in the Zurich region.
According to a media release from Raiffeisen Switzerland on the quarterly transaction price index, owner-occupied homes have to dig deeper into their pockets than in the first quarter and also compared to the previous year. Accordingly, the purchase of a condominium increased in price by 3.5 percent in the second quarter. Compared to the same period last year, there was a price increase of 7.7 percent. A single-family house costs 1.3 percent more than in the previous quarter. Year-on-year, prices for this type of property have risen by 8.7 percent.
According to the Raiffeisen chief economist Martin Neff, who was quoted in the media release, the price dynamic is due to the shortage of supply in the home ownership market. Neither the interest rate hike nor the heightened uncertainties in the reporting period would have changed that.
In the case of condominiums, the highest increase in prices compared to the previous year was in the Zurich region, where prices rose by 11 percent. In contrast, the Bern region has the lowest rate compared to 2021 at 3.5 percent. 10.6 percent more has to be paid for a condominium in tourist areas.
The price spiral is also driving up the costs for single-family homes. In the Western Switzerland region, the segment has increased in price by 12.8 percent, in the Northwestern Switzerland region the value is 10.4 percent.
Broken down by place of residence, there is a pronounced desire for private home ownership in the countryside, where the prices for a single-family house have soared by 12 percent. In city centers, house prices are 8.7 percent higher than last year.