UBS study: residential property prices driven by demand

Hope for falling usage costs

Living in your own home has become more expensive in the past year. The increase in running costs comprising mortgage interest, maintenance and imputed rental value was a key factor. While these usage costs amounted to around CHF 17,000 in 2021 for a condominium costing CHF 800,000, they are currently a good 50 percent higher, at around CHF 26,000 per year.

A further drop in interest rates is anticipated, which should ease the situation slightly. Lower usage costs for owner-occupied homes should make this option…