In Switzerland the interest rates continue to rule the real estate market

In Switzerland the interest rates continue to rule the real estate market

The situation in the Swiss real estate market continues to be favorable. But all may soon change: the rising cost of real estate, combined with a significant expansion of demand in the market and changes in the law could slow down "the pulse of the housing boom."

According to research UBS CIO Wealth Management, home prices continue to grow and reach new heights with each passing year. This trend, which has continued for more than 15 years, ultimately has an impact on the market.

In the economic centers of Switzerland rate’s raising was corrected by buying real estate for the purpose of investment. Today steadily fear of falling prices is missing, so UBS CIO Wealth Management, making the forecast for inflation in 2013, said the average level of 3.0% for residential and 2.5% for homes.

The boom in the property market inSwitzerlandincreases the pressure on the politicians and authorities in favor of strengthening the regulation of the market. In 2012, changes were made to the legislation concerning the minimum requirements for mortgage loans.

Financing conditions are attractive, and prices in the real estate market are getting higher and higher. However, 2013 is likely to be marked by an excess of office space, and developers will have to get used to the stiff competition, particularly in Zurich, Bernand Basel.

In 2013, the downward trend in sales of the retail sector must stop and may be offset by the volume of revenue due to the increase in aggregate demand for real estate, mainly due to immigration.