Platinum Market Watch by Niki Thomet Q4 - Flipbook - Page 8
E N G E L & VÖ L K E R S
Buy vs. Rent:
The Equation Shifts Again
After a temporary phase in which renting regained relative attractiveness, the cost comparison is gradually tilting back toward
home ownership. Forecasts suggest that the ownership premium may narrow in 2026, particularly for single-family homes.
At the same time, construction activity remains subdued relative to the existing housing stock. New building permits have not
accelerated meaningfully, reinforcing the structural supply constraint that underpins long-term price stability, particularly in
high-demand regions such as Zurich, Central Switzerland, and select alpine destinations.
Financing Strategy: Structure Matters More Than Ever
With SARON-based mortgages having recently outpaced longer-term fixed rates in certain scenarios, financing strategy has
once again become a central advisory topic. The question is no longer simply “fixed or variable,” but rather: how should maturities
be staggered, and what risk profile aligns with long-term wealth planning?
For affluent buyers, the decision between amortization and alternative capital allocation strategies has also re-emerged as a
strategic consideration. Real estate remains a cornerstone of Swiss private wealth, but capital efficiency and portfolio integration
are increasingly relevant.
Luxury and Alpine Property: A Pause, Not a Reversal
In the luxury segment, transaction and listing prices have shown signs of consolidation after the extraordinary post-pandemic
surge. This should not be misinterpreted as structural weakness. Instead, it reflects normalization at elevated levels.
8
E N G E L & VÖ L K E R S Z U R I C H S E E T H A LW I L
