Both rental flats and homes for sale were offered at lower values in January, as an analysis of the latest listings on ImmoScout24 shows. Is this the long-awaited effect of the interest rate turnaround on the real estate market?
The new year brings good news for all those who want to buy residential property: homes were offered at slightly lower prices in January, as shown by the Swiss Real Estate Offer Index, surveyed by the SMG Swiss Marketplace Group in co-operation with the real estate consultancy IAZI. For example, sellers of single-family homes adjusted their asking prices downwards by -0.7 per cent last month. The picture is virtually the same for condominiums, which saw a price reduction of -0.6 per cent.
The falling values could indicate that the significantly higher financing costs due to the interest rate turnaround are affecting the mood of prospective buyers and slowing down demand. The coming months will show whether this development is stable. The strong population growth and the low level of new construction activity may well ensure that the effect will soon fizzle out again.
Rents are also getting cheaper
In some regions, those looking for a rental flat could benefit from declining asking prices. On the national average, advertised rents fell by -1.1 per cent, even more in the regions of Ticino (-2.8 per cent), Central Switzerland (-1.6 per cent) and Zurich (-1.5 per cent). Smaller declines were also seen in eastern Switzerland (-1.0 per cent), the Lake Geneva region (-0.8 per cent) and the Central Plateau (-0.7 per cent). On the other hand, a slight increase was observed in northwestern Switzerland (+0.3 per cent).
“Falling rents are likely to remain the exception in the current year. The increasing shortage of rental flats, not only in the urban centres, as well as the probable increase in the reference interest rate relevant under rental law could soon cause supply prices to rise again,” says Martin Waeber, Managing Director Real Estate, SMG Swiss Marketplace Group.
Date: 31 January 2023
The Swiss Real Estate Offer Index is published on the websites of ImmoScout24 and IAZI AG.
https://www.immoscout24.ch/en/real-estate-index
www.iazi.ch/angebotsindizes
Detailed information and statistics on developments throughout Switzerland and in the various major regions can be found in the download area.
Rental offers all of Switzerland (CHF/m2 per year)
| 01.01.2023 | 31.01.2023 | Change | in % | |
| Month | 269.4 | 266.6 | -2.9 | -1.1% |
| 31.01.2022 | 31.01.2023 | Change | in % | |
| Year | 258.5 | 266.6 | 8.0 | 3.1% |
Offers to buy single-family houses all of Switzerland (CHF/m2)
| 01.01.2023 | 31.01.2023 | Change | in % | |
| Month | 7475.4 | 7422.4 | -53.0 | -0.7% |
| 31.01.2022 | 31.01.2023 | Change | in % | |
| Year | 7184.6 | 7422.4 | 237.9 | 3.3% |
Purchase offers for condominiums all of Switzerland (CHF/m2)
| 01.01.2023 | 31.01.2023 | Change | in % | |
| Month | 8515.4 | 8463.3 | -52.0 | -0.6% |
| 31.01.2022 | 31.01.2023 | Change | in % | |
| Year | 8044.1 | 8463.3 | 419.2 | 5.2% |
Sebastian Sinemus
Senior Communications Manager Real Estate & Media Spokesperson
