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Housing in Zurich and Geneva only moderately overvalued, says UBS

© Nik Frey | Dreamstime

The UBS Global Real Estate Bubble Index 2017 describes housing in Zurich and Geneva as only moderately overvalued. The two Swiss cities rank 6th (Geneva) and 9th (Zurich) in a list of 20 selected global cities.

The top eight: Toronto, Stockholm, Munich, Vancouver, Sydney, London, Hong Kong and Amsterdam are all classified as bubble risk. Only Chicago is undervalued. Since 2012 apartment price are down 10% in Geneva, but up 10% in Zurich.

Matthias Holzhey, a Swiss real estate investment expert at UBS said: “Favorable financing conditions keep demand for home ownership buoyant. Buying a 60 square metre apartment in Zurich costs a skilled service worker six years’ income – a low level compared to cities globally.”

Low costs of financing also help. Low mortgage rates mean effective financing costs are only 10% of the average annual income of a skilled service worker, says UBS. Because of mortgage regulations, the challenge can be getting a mortgage. These regulations are keeping the lid on home prices, according to the report’s authors.

 

Full story here
About Le News
Le News
The newspaper Le News is a free, quality, local English language newspaper launched on 31 October 2013. Le News fills a gap in local Swiss media for the numerous English-speakers living and visiting Switzerland. In late January 2015 we decided to put our print medium on hold and focus on our digital media presence.
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