In Switzerland, as housing prices rise

05.11.2010 16:46
In some areas of Switzerland, the rate of appreciation of residential real estate is much higher than the national average. At the same time, analysts do not expect the formation of a "bubble" in the market.

Currently, the demand for local real estate supported largely by immigrants. First of all, it is well-educated Europeans applying for paying jobs. They prefer to buy or rent accommodation in Zurich, Geneva, Zug, as well as the famous spas. Specified regions and are the "growth centers".

Thus, private detached houses in the vicinity of Lake Geneva risen over the past 12 months by 10% and apartments - 11%. The most popular regions of the prices of houses and apartments rose by 4,7% and 2,9% respectively, reported swissinfo.ch referring to the company Wuest & Partner. Throughout the country, appreciation was less significant. According to statistics from Global Property Guide, the value of Swiss residential properties in II quarter has grown compared to II quarter 2009 on 1,9%.

Rents are rising and this is an important factor in a country where only 40% of the population own their home. Over the past 12 months rental of residential property rose by 8.6% in the region of Lake Geneva and on 2,5% - in the whole of Switzerland.

Fears of experts are also of very low mortgage rates that stimulate demand and lead to higher prices. Moreover, in conditions of economic instability make them more in the short term is not planned.

However, as noted in the study of Credit Suisse, Switzerland, there are certain constraints. First of all, it's tough conditions for the issuance of mortgage, which started to operate after a crisis on the real estate market of 90-ies.

In most cases, home buyers are required to obtain a loan to pay 20% of the value of the purchased object. Sometimes this amount is less than 20%, but the initial fee is still required.

Economists research group BAK Basel expect that the cost of sale and rental housing in the country will remain stable for at least the next 12 months. Specialists Wuest & Partner predict a price increase within 1,4-2,2%. However, the formation of the bubble and subsequent collapse of the market could increase prices by 10% simultaneously with the tripling of interest rates on mortgage loans.
www.zagorodna.com
Content tags: Overseas property
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