Zurich. Zurich real estate prices are no longer going through the roof.
The end of negative interest rates is already making itself felt on the Zurich house and apartment market: “The main thing is to own a home” no longer applies. Prospects are becoming more selective. Price growth has already declined significantly, as the latest ZKB real estate monitor, which was published on Tuesday, shows.
Just a few months ago, prospective buyers for apartments and houses were crowded together at viewing appointments.
The chance of winning the bid was almost hopeless. Unless prospects lower their expectations or spend more money. Even “shop keepers” found a buyer.
Prospects are becoming more selective
With the end of negative interest rates, the financial advantage of owning a home compared to a rented apartment vanished into thin air within a few weeks. Rented apartments are even cheaper in expensive locations. This is reason enough for those interested in buying objects to be more selective, writes the ZKB.
As a result, houses or apartments that are in a bad location or are offered too expensively no longer go in the first round of tenders. Again and again it takes a second attempt to find a buyer.
Sellers feel reluctance
Advertisements would often appear with a lower asking price. Sellers would also feel the reluctance of interested parties, writes the ZKB.
As far as the near future is concerned, potential homeowners are likely to continue to benefit: ZKB expects price growth for apartments and houses in the Zurich area to continue to decline.
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