The most important investor groups expect prices for real estate investments in the residential segment to increase slightly over the next 12 months. For commercial property, however, a trend reversal is apparent, as investors and appraises are forecasting stable prices which are falling slightly. These are the findings of the Swiss Real Estate Sentiment Index, a survey that has been published for the first time.
According to the Swiss Real Estate Sentiment Index, a survey conducted by KPMG Switzerland for the first time, sentiment on the Swiss market for investment property ranges from neutral to cautiously optimistic. The representative survey of around 190 institutional and professional investors and appraises of Swiss investment property shows moderately positive expectations to be found primarily among developers and pension funds. Professional investors are much more skeptical with regard to the future trend. One of the main reasons for this is the economic situation which respondents rate as stable to moderately negative with an index score of -38.0 points. 39% of all respondents also expect market risk to increase over the next 12 months. Nevertheless, at +35.2 index points, the expected price trend across all segments of use ranges from neutral to slightly positive.