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Munich, Paris, Amsterdam, Frankfurt: the euro area is the region with the most heated real estate markets. This is the conclusion of UBS. The big bank examined property prices in 25 major cities around the world. Bottom Line: House price growth has accelerated on average despite the current global recession.
A look at Switzerland: Zurich has seen the highest price increase of any Swiss economic region in the last decade. “The market for owner-occupied real estate has dried up,” says UBS. So far, the crisis in the crown has barely left any traces. Because more price increases are expected, UBS is now warning. The city has a new bubble risk status.
Geneva without risk status
In contrast, the second most important Swiss city examined, Geneva, is not in risk mode. Here, the housing market is considered overvalued, but there is no bubble risk, according to UBS.
According to the study, the following applies not only to Switzerland, but to the whole world: In the long term, the pandemic will have some negative effects on the urban property market. For example: the fall in rents. This is bad news for homeowners. For those looking to rent a new apartment, however, it is good.
Interesting: in the long term, the study’s authors anticipate population growth to accelerate away from cities and into surrounding metropolitan areas. Recently there have been several areas here where real estate brokers have been unable to rent or sell their newly built apartments on the go. (aurochs)
