While the real estate market of France’s largest cities is affected, the question arises for Geneva and Pays-de-Gex : despite the geographical border, many Swiss residents aspire to more space in terms of habitability and environment as a priority in addition to being ecological if possible.
Economists predict a decline of around 20% in property prices over the next two years in France. A figure that needs to be put into perspective compared to our region where prices have increased in the past but continuously. In addition, the local property turnover rate unlike other geographic sectors is the guarantee of a permanently active market. As a result, the latent crisis will have an impact on the border area, but probably to a lesser extent.
Even if the stone investment has always been regarded as safe, the current pandemic will have lasting consequences on client behavior focused on a greater living space, many green areas combined with a less dense environment. Indeed, real assets provided by our region which will be attractive : the resilience process is definitely on the move !
From a banking point of view, even if a rise in interest rates cannot be excluded in the near future, it is clear that Europe’s sovereign debt is exploding and widening their fiscal deficit. Consequently, a rise in bond and mortgage rates seems possible with an impact on home loans and on the stability of property prices. For further information, please see our rate’s grid regularly updated as well as our last publications and call us using our contact form.