High demand fuelling dramatic increase in price of Zurich homes
A new report by Zürcher Kantonalbank (ZKB) has shown that buying a house has become even more expensive in Switzerland's largest city, Zurich. The Zurich Homeownership Index (ZWEX) - a barometer for housing demand - has increased dramatically, as more and more people look for a house or apartment in the city.
House prices increase throughout Canton Zurich
In the fourth quarter of 2021, ZKB found that the price of houses, along with their taxes, costs and fees, have increased by 2,5 percent across the canton in the last three months, making houses 9,3 percent more expensive than the same period in 2020. Prices increased for all types of housing, something the Tages-Anzeiger blames on the attractiveness of the city for expats looking for a job in Switzerland.
The report found that home ownership is still in demand across the canton. The greatest growth in the index was in the city of Zurich and on the Gold and Silver Coasts (the area surrounding Lake Zurich), which saw price increases of up to 11,3 percent. Even in rural areas in the Zurich Oberland, demand for housing is still high.
COVID has made buying a house more appealing
According to the Swiss bank, the amount of people buying homes has declined over the second half of 2021, although the number is still higher than in 2017 and 2018. ZKB says the move to home working has made the idea of owning your own home more appealing, increasing demand further.
The current conditions in the housing market are blamed on the COVID pandemic, with the Tages-Anzeiger reporting that COVID-19 has made housing a primary concern among the public. Low-interest rates for mortgages and the security of owning your own home is making buying a house more appealing than renting for many families.
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