The real estate landscape is undergoing an exciting change. Recent reports show that buying a home is becoming more attractive again in many communities. The reason for this is the interest rate cuts from 2022, which led to a significant reduction in mortgage rates. This creates new opportunities for buyers and investors who want to benefit from the favorable conditions.
Focus on regional differences
A detailed analysis highlights the regional differences where buying a home is particularly worthwhile. Some of the regions to be highlighted are:
- Zurich and the surrounding area: Although prices are high here, the stability of the market and consistently high demand make this region a safe investment.
- Central Switzerland: Places like Lucerne and Zug not only offer a high quality of life, but also attractive real estate prices in relation to rent.
- Northwestern Switzerland: Basel and the surrounding municipalities in particular benefit from their proximity to Germany and France, which makes the region particularly attractive to newcomers.
- Eastern Switzerland: Regions such as St. Gallen and Thurgau offer good value for money, especially for families.
- Ticino: The mild climate and picturesque landscapes attract buyers looking for a property as a vacation home or retirement residence.
Why buy now?
The decision to buy a property is influenced by many factors. However, current market conditions speak for themselves: interest rate cuts in recent years have made home financing more affordable. Mortgages are currently available at low interest rates, which reduces the monthly burden for buyers. This opens up numerous opportunities for first-time buyers as well as those looking to exchange their existing property for a larger or better located one.
Another important factor is the development of rental prices. In many regions, rents are rising continuously, which makes buying a property an economically viable alternative. By purchasing their own home, buyers can stabilize their housing costs in the long term and protect themselves against future rent increases. This not only offers financial security, but also the opportunity to invest in your own future instead of spending money on rent month after month.
The current market conditions speak for themselves:
- Low interest rates: The interest rate cuts make mortgages more affordable, reduce monthly charges and enable affordability.
- Rising rents: Rents continue to rise in many regions, making buying a property an economically viable alternative.
- Long-term investment: Real estate continues to be regarded as a safe investment that offers value in times of economic change.
Real estate forecast
Forecasts indicate that buying property is likely to be cheaper than renting by the end of 2024. This is due to lower mortgage interest rates and sharply rising rental prices. Buyers can therefore benefit from the current market conditions in the long term and make a valuable investment at the same time. Various reports underline this development and offer a positive outlook for future home buyers.
An example illustrates this trend: according to a recent UBS study, the annual cost of a medium-sized condominium with four and a half rooms and 110 square meters of living space is currently CHF 32,500. In contrast, the annual rent for such an apartment costs CHF 30,500. This results in an ownership premium of 7 percent. In summer 2023, this premium was still 16 percent. This means that someone who took out a long-term mortgage last summer would have to shoulder cumulative additional costs of almost CHF 50,000 by 2033 according to current forecasts. This shows just how much conditions have improved for home buyers.
Tips for potential buyers
Before you take the plunge and buy a property, you should consider a few important aspects:
- Financial planning: Solid financial planning is the be-all and end-all. Take into account not only the purchase costs, but also the running costs for maintenance and possible renovations.
- Location: The location is crucial. Pay attention to the infrastructure, proximity to schools and workplaces and the general quality of life in the region.
- Future prospects: Think about how the region could develop over the next few years. Is an increase in the population imminent? Are there any planned construction projects that could increase the value of your property?
Conclusion
The market shows that buying is becoming more attractive again. With the right information and thorough planning, the dream of owning your own home can become a reality and at the same time represent a valuable investment. Stay informed and take advantage of the current opportunities to benefit from the favorable conditions.
For further details and specific information on the individual municipalities, it is worth taking a look at in-depth real estate analyses. Stay on the ball and don’t miss out on the opportunities currently offered by the real estate market.
Data are without guarantee. The information on these Internet pages has been carefully researched. Nevertheless, no liability can be assumed for the accuracy of the information provided.