Between investment strategy, economic conditions, and real estate market dynamics, the recent interest rate cut is as intriguing as it is thought-provoking. Is this an opportunity to seize or merely a temporary adjustment?
On March 20, the Swiss National Bank (SNB) surprised by lowering its key interest rate to 0.25%. On paper, this announcement could breathe new life into borrowers and reignite investors' appetite. However, in reality, the situation is more nuanced. While financing conditions have slightly eased, property prices continue their upward trajectory. This dynamic raises the question: should one buy now or wait longer?
For homeowners, this rate cut may open up interesting prospects. Those with a mortgage could renegotiate their terms and reduce their financial burden. A well-negotiated refinancing deal can make a significant difference in the long term. Yet, the impact on the market remains measured. Despite easier access to credit, strict banking requirements persist, and rental profitability remains uncertain. While borrowing costs less, property prices show no signs of decline.
In Geneva, the trend is clear. In 2024, apartment prices rose by 2%, reaching CHF 13,548/m², while house prices climbed by 2.5%, settling at CHF 15,259/m². It’s a tight market where the effect of the rate cut remains limited. Demand is still strong, supply is constrained, and buyers face stiff competition.
So, should we rush in? The rate cut offers new room for maneuver but does not fundamentally alter market dynamics. Prudence and anticipation remain key. Buying is advisable but with a long-term vision and a well-thought-out strategy.
The team at Pilet & Renaud Transactions is available to answer any questions regarding buying or selling real estate and offers tailored support.
Contact us at 022 322 92 81 or get your property appraised on our website
Sources :
Bilan : https://www.bilan.ch/story/immobilier-suisse-acheter-avant-que-les-prix-grimpent-501264828700
