Residence: Interest rates are falling, home ownership is becoming more attractive. Is the trend reversal already noticeable?

Claude Ginesta: Yes, we are noticing it. Demand has recently increased again. At the same time, however, supply is also increasing. So for the first time in about five years, we can speak of a well-functioning market again.

In which direction are the already high prices in many places moving?

When supply and demand are no longer so far apart, they tend to meet in the middle. I therefore don't think that prices will continue to rise in the short term as they have done so far. We expect prices to move sideways.

City, conurbation or country: where are people looking for a home?

The decision is usually based on compromises – in terms of budget, location or property. Either they pay more than they can actually afford or they move further away from the center, where it is cheaper, and sacrifice the view. A view of the lake alone can make a difference of over 30 percent. Or they cut back on the property. Then they opt for a single-storey apartment instead of a penthouse or a semi-detached house instead of a detached house.

Single-family home, condominium or rental? What is currently the trend?

The question is rather buying or renting. At the moment, both are about equally attractive. With the currently falling interest rates, the pendulum is swinging towards buying. If  prices rise, the rental market will become more exciting again.

Too little living space is being built. What needs to change to boost construction?

The high level of regulation is a problem that needs to be solved. I'm thinking of noise protection or the requirements of the Federal Inventory of Sites Worth Protecting of  Switzerland (Isos). And more building land should be zoned again because densification is not working properly.

Densification often leads to the replacement of single-family homes with faceless condominiums. Why do developers shy away from bold designs?

Of course you can argue about architecture and aesthetics. On the one hand, the municipalities want this type of densification through their building regulations. After all, they want apartments. It would make sense to award a bonus for good construction and the renovation of historic buildings, a supplement to the utilization rate, as is already the case for site developments and energy-efficient construction. But for me, there are also many architects who don't dare to do anything. And there are too many authorities that have no idea about good architecture. The inspection procedures are increasingly being outsourced to external engineering firms and surveyors, especially in small municipalities.

The financing hurdle remains high for many buyers. Are banks too strict when granting mortgages?

On the contrary, banks are increasingly circumventing the so-called golden rules of financing. They often turn a blind eye to affordability in particular, and the five percent rule for hypothetical interest rates is only a recommendation from the Swiss National Bank. The problem is that competition is not playing out properly here. There is de facto only one major bank in the country and one cantonal bank per region. Insurance companies are withdrawing from real estate financing. As a result, interest rate cuts are not being passed on and the banks' margins are rising.

You have been running the family business for 15 years. What has changed in that time?

First and foremost, the prices for properties. Marketing has also changed. A lot of things are now highly digitalized. Interested parties now have better opportunities to view a  property with pictures, videos or virtual tours. In general, customers are better informed today. Our company has also changed, we have grown considerably.

You are also involved in industry issues beyond your own company. As Chairman of the Board of Next Property, which pools the interests of real estate companies for the «Newhome» platform, you are standing up to top dogs such as Homegate and Immoscout. What is the goal?

Today, digital applications can take over many estate agent functions, and the monopolists, as we call them, are trying to do this by retaining contact with interested parties. This threatens the smaller brokers who, unlike us, do not have a large number of contacts. You can see this in the USA, where the top dog Zillow is taking over the business. In addition to around 500 real estate companies, 19 cantonal banks and Axa insurance companies are involved in «Newhome». We thus offer an alternative to the monopolists' offerings.

You have also been active in the «vacation corner of Switzerland» for some time now. What makes the Graubünden market so attractive?

The second-home initiative has reduced the supply, and what is scarce is in demand and increasing in value. Graubünden offers a high quality of life and is easy to reach.

You offer properties in other vacation destinations through your international network. Why do wealthy people buy a house far away that they may only use for a few weeks a year?

Perhaps they already have everything else. Those who can afford it want to enjoy quality of life and something nice during their lifetime. What's more, it's easier to get there today. And there are more and more property owners who rent out their properties when they are not there themselves. So the sharing economy has also arrived in these circles.