Swiss real estate market, find out how the Covid-19 pandemic will affect the demand for real estate and the type of searches.
The Covid-19 pandemic is affecting every aspect of our lives and these changes are only beginning. Consequently, also the swiss real estate market will adjust itself according to a reality characterized by the request of new types of property as well as different volumes of search.
So, find out how the historical moment we are experiencing will affect the
Switzerland’s real estate market and how the concept of home is changing.
Swiss real estate market, from the shock to the rebound
According to a study conducted by Credit Suisse, the real estate market registered a positive start of the year until the spread of Covid-19. The pandemic, in fact, caused a sharp slowdown followed by an immediate recovery.
The data collected by Domus Realty confirm this positive trend and show an increase in purchases and requests for the Lugano area in July and August. It’s important to note that also the areas that generally do not arouse the interest of potential buyers had registered very good performances.
The paralysis of the market
The reduction in working hours and the closure of many activities during the lockdown generated a feeling of uncertainty that can be compared to a shock. Within a few days, we found ourselves facing an unexpected and new event whose consequences and evolution could not be foreseen.
If this reaction on the part of consumers and investors was normal and predictable, it was not obvious an almost immediate recovery.
Probably this positive reaction from the real estate market was pushed by several factors, such as the Federal Council’s interventions aimed at limiting the job losses and the good management of the pandemic. This latter aspect favoured many requests of houses by Italian and Russian citizens living in countries where the attempt to contain the virus has been more difficult or unsuccessful.
The rebound took place first in German-speaking Switzerland and then affected the French and the Italian cantons. In July and August, there were many requests for Lugano and its surroundings but also for areas beyond the borders as Lake Como and Lake Maggiore. For a long time, the real estate market of these areas has not been so effervescent.
The strength of the Swiss real estate market
The factors that can consolidate this positive trend in Switzerland’s real estate market over the next few months are many:
- persistence of negative rates likely for several years
- greater volatility of financial markets combined with increased risk aversion, a situation that can move investments to the real estate market
- increase in migratory flows from Italy and from other European countries. This situation is favoured both by the perception of greater personal security given the effective management of the emergency and by the foreseeable increase in property taxes required by various nations to cover debts due to the pandemic.
If the positive rebound of recent weeks continues for the next few months, the Swiss real estate market is likely to return to pre-pandemic levels earlier than indicated by the first projections.
Will the ideal home look different after the pandemic?
The Covid-19 pandemic will affect also the type of house requested. The more or less rigid lockdown that many people have experienced has led to rethinking the concept of home and living comfort.
Who is looking for a new home will consider not only its geographical position, its proximity to services and infrastructures, size etc. but also other aspects that have become increasingly important.
The demand for houses with a garden where children can play and where adults can relax or receive relatives and friends will increase significantly.
Probably the lockdown has highlighted some limitations of the houses characterized by large open space living areas. This kind of living room is pleasant to live in but not suitable for guaranteeing the privacy when you spend a lot of time at home.
It has been rediscovered the importance of a room dedicated to smart working as well as a children’s room with comfortable and healthy study areas. Desks and chairs of the correct height and a good source of natural light are important elements to avoid incorrect posture or eye discomfort.
At the same time, the lockdown has also highlighted the importance of living in houses characterized by maximum energy efficiency. This feature has a concrete impact not only on the environment but also on expenses.
In conclusion, this new concept of home emphasizes the need for functional spaces suitable for multiple activities that before pandemic were carried out exclusively outdoor.