Peak activity in the property market in Switzerland became a danger to the country economy. This statement was made by chief economist of UBS Daniel Kalta.
Based on data from the bank UBS, in the 3rd quarter of 2012 the housing market in Switzerland for the first time in two decades is at risk. This occurred due to the increased demand of Swiss real estate among foreign investors, who are attracted by prosperous and stable economy during the crisis in Europe.
«We see a very bad situation with the prices of real estate in Zurich, Geneva and Zug», - says Daniel Kalta: «This is a significant macroeconomic risk for the economy in Switzerland», - said the expert.
House prices in Davos during the six months increased by 7,6%. It has become one of the most significant growths in the prices of all regions of Switzerland. Property prices in Zug increased by 5,1% in Zurich - by 3,8%.
«The situation is expected to stay the same in the coming one or three years», - said Kalta: «Further future will depend on interest rates. If the situation does not change, we are risking to see a doubling of the price of real estate every eight years».