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Swiss Real Estate Market Remains Vulnerable, Central Banker Says
Price dynamics in Switzerland’s residential-property sector are slowing in the wake of higher interest rates but the market remains vulnerable, according to Swiss National Bank Vice President Martin Schlegel. While increased borrowing costs are reining in price growth, they are also pushing up rents as landlords are allowed to pass on part of higher mortgage expenses to tenants. This could lead to a temporary uptick in inflation, Schlegel said Friday in Lausanne. He said the pace of price gains is expected to dip back below 2% — the upper end of the SNB’s target range — in the medium term, though he ... (full story)