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Interpretation of the FPRE real estate meta-analysis for May 2024
17 May 2024
The cycle of interest rate cuts was heralded surprisingly early with the reduction of the key interest rate in March 2024, ahead of the major currency areas of the US and EU. Despite being predicted last year, a further increase in the reference interest rate during the current year is therefore off the table for the time being. This will further widen the growing gap between existing and quoted rents. The persistently high level of net immigration is acting as a price driver on the rental housing market, especially in urban areas. There are still no signs of an increase in construction activity in the residential sector, which remains well below the five-year average. On the office market, demand for high-quality space in good locations increases slowly but steadily. This is causing the achievable prime rents to rise. The price trend on the owner-occupied housing market continues to point upwards. As supply will continue to be lower than demand and the fall in interest rates will make buying a home more attractive again, this trend will continue.
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Contact us
Sebastian Zollinger
Director, Head Real Estate Advisory, PwC Switzerland
Tel: +41 58 792 28 87
