Analysts predict Switzerland crisis in the real estate market
At the beginning of epidemic of analytics of UBS Swiss Bank already warned that the commercial real estate can fall in price more than for 10%.
However they were quieter concerning office and especially – the residential real estate where, according to them, the prices could fall only slightly.
Nevertheless, other Swiss economist, Sergio Rossi, just published more disturbing forecast in the blog. According to him, the Swiss real estate market "will strongly suffer from crisis at least for two reasons".
On the one hand, because of quarantine restrictions many people and the enterprises will not be able to pay for lease. And on the other hand, the vast majority of owners of housing got into mortgage loan debts which they will not be able to repay any more if cease to get paid. According to him, the "unconditional basic income" paid to the most vulnerable groups of the population could correct a situation.
Last summer the Swiss business weekly assumed possible crash in the real estate market, comparable with that which occurred in Switzerland in 1990. The newspaper reminds that, according to calculations of mortgage service MoneyPark, in 2018 the Swiss buildings on average only for 26% were financed by equity. He considers plausible the assumption that the prices will drop more than by 26%, and in this case the average house owner will go bankrupt. And, as in a case with crisis of subprime mortgage lending, then there will be a risk of growth of the auction sales aimed at that creditors could return the issued mortgage loans.
Switzerland - one of the most beautiful and amazing countries of Europe which contained in itself different cultures, languages, and found the harmonious union between all so different people.
Switzerland - an excellent opportunity to study the cultures of several countries, having visited only one: in the center and in the north of the country you will plunge into the typical atmosphere of the German towns, with their order and characteristic lodges with a sun blind. Around Lake Geneva you are waited by the easy and brisk atmosphere inherent in France. In the south of the country, in Lugano, the slow weakened lifestyle peculiar to Italy reigns. In Switzerland 4 official languages: German (more precisely, the Swiss German), French, Italian and Rhaeto-Romanic, and dialects exists more than 120 here! Even residents of Bern or Basel differ in a dialect from residents of Zurich though they are divided by only about 100 km!
If you wish to purchase the real estate in Switzerland, specialists of AWAY REALTY with pleasure will help you.
