The «Swiss Real Estate Sentiment Index» compiled by KPMG Switzerland indicates a general stagnation in price for investment real estate over the coming twelve months. However, residential real estate and centrally-located properties are likely to buck this trend.
A look at the past twelve months confirms the 2012 prediction of a slowdown of price increases in respect of investment real estate. This trend is set to continue: The latest «Swiss Real Estate Sentiment Index» stands at -1.9 index points, indicating that the next twelve months are likely to see a slight decline in price for real estate investments. This will reflect in a moderate drop compared to the previous year when the index was still positive, namely at +20.6 points. The index is based on the assessments of over 220 institutional and professional investors, developers and appraisers of Swiss investment real estate. Professional investors are proving to be particularly skeptical at present (-37.8 points), meanwhile pension funds (+13.2 points) and developers (-3.8 points) who stood out as being cautiously optimistic in 2012, are now anticipating prices to stagnate or even decline. Unlike the previous years, market players have more positive expectations when it comes to economic development (from -38.0 points to -12.0 points).