Property Abroad
Blog
Falling expectations of real estate prices in Switzerland.

Falling expectations of real estate prices in Switzerland.

Falling expectations of real estate prices in Switzerland.

Professional real estate investors are predicting a decline in property prices in Switzerland. This opinion has been expressed by many market participants based on a survey conducted by the consulting firm KPMG.

The study reflects the expectations of professional investors, developers, consultants, and appraisers regarding the real estate market in Switzerland. According to the survey, the latest results show negative expectations for property prices across all segments, locations, and regions. For the first time, a negative forecast has been observed for central areas such as Zurich.

Respondents point to interest rate and regulatory risks as the main reasons for the expected decline in property values.

The survey also showed that only 18% of those surveyed believe that achieving the net zero emissions target by 2050 is possible.

Financial experts also share a pessimistic outlook. Analysts at Baader Helvea, in their commentary on the KPMG survey, state that they maintain their "cautious" assessment of the Swiss real estate market. From an investor's perspective, preference should be given to companies with "lower-risk business models and conservative balances."

Comment