RealAdvisor property platform: Property prices in Switzerland begin to fall

The price of real estate in Switzerland has been increasing continuously, but in some areas it has started to decrease. The property market is slowing slightly, indicating that it is becoming more favorable for buyers.

For the first time in 20 years, fewer properties are being sold, causing real estate prices to stagnate or fall slightly, according to a new report from Swiss property platform RealAdvisor.

Experts said the number of homes bought in Switzerland fell sharply in the first quarter of 2023. In the first months of this year, apartment prices have stagnated or even fallen in some high-demand areas.

According to the report, the price of apartments in the main cities of Switzerland has fallen slightly. Zurich recorded a decrease of 0.2 percent and Basel and Lausanne of 0.4 percent. Meanwhile, apartment costs in Geneva and Bern also fell slightly by 0.2 percent.

Experts said this could cause concern for investors and homeowners.

"These price declines indicate potential concerns for investors and homeowners in these urban centers," RealAdvisor said, according to Albinfo.

House prices rose significantly in various places, in Geneva by 0.5 percent, Zurich by 0.2 percent and Basel by 0.3 percent. Lausanne, on the other hand, saw a slight decrease of 0.3 percent, suggesting that the single-family home market has momentum in some areas.

Outliers in the Swiss real estate landscape where housing prices continue to rise at the moment are cities such as Sion with house costs up 1.7 percent, St. Gallen with 1.6 percent, Zug with 1.8 percent, Lucerne with 1.3 percent, Biel with 1 percent and Friborg with 0.3 percent.

Across the Swiss market as a whole, the number of property transactions fell by 17 percent in the first quarter of 2023, reflecting the market slowdown in various regions.

Zurich saw a decrease of 14 percent, while Basel by 30 percent and Bern by 25 percent.

"This downward trend in transactions could affect buyer and seller confidence and possibly lead to further stagnation in these important markets," the report said.

Tourist regions such as Graubünden and Valais have not been spared from the slowdown, with Graubünden seeing a 36% drop in property transactions. In French-speaking Switzerland, the situation is not the same across the board, with house sales down in the canton of Geneva by 21 percent, but up in Vaud by 17 percent and Friborg by 7 percent.

"These different numbers are difficult to explain at this stage and can be strange," RealAdvisor said.

Experts said that because asking prices are falling, "market conditions may shift toward a buyer's market." There are currently around 35 properties for sale in Switzerland. /Telegraph/