Since the implementation of the Second Homes Act, there has been little construction, and the stock of second homes or single-family homes is hardly growing. What is growing steadily, however, is the interest of buyers and the transaction price of residential property.

On 11 March 2012, the Swiss voters approved the second-home initiative, thus stopping the approval of new units in municipalities where the proportion of second homes exceeds 20 percent. New buildings will now only be built in a few exceptions. This led to an extreme shortage of supply, with a sharp increase in demand. Although this excess demand has diminished somewhat as a result of the uncertainties on the stock markets, the geopolitical situation and due to the interest rate increases in recent months, it is still high. Even with a slight decrease in demand, a strong imbalance remains.

High desire for home ownership

Holiday flats and houses are popular. Demand, especially for holiday homes, remains very good. Forecasts assume that the excess demand will remain high in the coming months, because the pandemic and its consequences have greatly increased interest and the desire for home ownership. The system of supply and demand is a fundamental principle of the national economy, which also comes into play here: if demand increases while supply remains the same or even decreases, prices will go higher.

Constantly rising transaction prices

Compared to the previous year, transaction prices have continued to rise, and the price increase, especially for condominiums, knows only one direction - upwards. If we look at the change in transaction prices for residential property in Lenzerheide, for example, we see a price increase of 160 percent for condominiums and 130 percent for single-family houses since 2000. In Falera and Sagogn, prices have even more than doubled since the turn of the millennium. Rising interest rates, inflationary trends and the current outlook for the real economy have so far only had a marginal influence on the constellation of the real estate market. However, this does not mean that the market is untouchable: additional uncertainties or larger interest rate increases could well influence the market in the near future.

 

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