Buying a house: a family home in Zurich is now CHF 30,000 cheaper
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monthly comparisonA single-family home in Zurich is now CHF 30,000 cheaper
House prices have fallen for the second year in a row. The price explosion seems to be over now. These are the reasons.
That’s what it’s about
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Detached houses cost significantly less in Switzerland in November than in October.
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Especially in Zurich is now cheaper.
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In Ticino and Central Switzerland, however, it is now more expensive.
For years the prices for single-family houses inexorably increased. There have been the last few years Price jumps of ten percent. But that seems to be over now.
Single-family home sellers have cut prices for the second month in a row. That spells die “Sunday newspaper” with reference to a regional overview of the real estate consultant Iazi.
Especially in the greater Zurich region is now cheaper. A typical single-family house with 150 square meters cost 30,000 francs less in November than in October. Compared to May, it’s even 100,000 francs less. Prices also fell in Mittelland and Northwestern Switzerland.
Home sellers hardly ever find prospective buyers
The reason for this is the drop in demand due to inflation, the uncertain economic situation and rising mortgage interest rates. In addition, banks have become more confidential and real estate is valued lower when granting mortgages, says Romain Dequesne, CEO of mortgage broker Resolve.
As a result, houses are now longer on the market. According to Dequesne, objects that were previously only available for a month only find a buyer after two or three months. It is difficult to find buyers, especially in regional regions.
Another reason for the lower prices is the growing supply. Now the real estate that was held back during the pandemic is coming onto the market, says Lorenz Heim from VZ Vermögenszentrum: “People now want to sell quickly in order to still benefit from the high prices.”
Still high prices for luxury real estate
But prices are not falling everywhere. In Central Switzerland and Ticino there was an increase in November (see photo gallery). The real estate experts at Iazi explain this with Ticino’s population growth, which boosted demand.
Top prices are still being paid in the luxury segment, says broker Claude Ginesta from Ginesta Immobilien. He states: Despite the strong Swiss franc, which makes real estate in Switzerland more expensive for foreigners, there are more foreign luxury buyers who are moving to Switzerland for tax reasons.
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