16/09/2021 | Broker Tips

Real estate market trends in the Lake Geneva area (2021-2022)

By Sébastien Pannatier, sales manager, PROXIMMO real estate agency and Lookmove partner

After 2020, a year of full of surprises and major events, 2021 has presented itself as a hope for a « return to normal », whether for our daily habits or our personal and professional plans. There are still many uncertainties, but the economy and financial markets appear to have returned to a more steady, and more encouraging pace. In such a context, the relative stability found is opposed to a fear of an uncertain future, which is not without impact in the thinking linked to purchasing or selling real estate.

It should be noted that any market, whatever it is, is mainly governed by two major aspects: supply and demand. With regard to real estate in the Lausanne region and more broadly in the Lake Geneva area, it was noted that general demand did not decrease in 2020, quite the contrary, since we observed a strong demand, especially on properties with large outdoor spaces, and villas. Despite this trend, supply remains limited, in particular due to difficulties in obtaining building permits and developing real estate projects in the most desirable areas. Even on already built properties, the choice remains very limited. For example, Wuest Partners tells us in its latest report that the number of detached villas offered for sale during the 1st quarter of 2021 has never been so low since 2004. Finally, interest rates remain at their lowest, either for savings or mortgage loans, which naturally leads to wanting to « invest in stone ».

At PROXIMMO, we also note these observations in our daily work, particularly because of an increase in transactions over the past year, despite the evolution of prices and the general context. In addition, we have regular contact with buyers who are positioning themselves more and more quickly, sometimes after many months of research, and who wish to be able to invest their assets in a long-term life project. In a climate of low supply and high demand, it makes sense for sellers and buyers to want professional, efficient and responsive support.

In the light of these findings, it is reasonable to think that the current trend will continue in the second half of 2021 and into 2022. To put it in a nutshell, this means stable prices or even a slight increase (1-2% / year) and a strong demand on the Lake Geneva area, in particular for villas. The economic policy implemented by the government is also conducive to this situation, with the aim of not brutalizing a market that is already in great demand. In the construction industry, one does not expect to see major relaxations in existing laws and regulations, suggesting that supply will still remain relatively limited. Finally, banks remain cautious in their mortgage lending policy, with stringent acceptance conditions, and must systematically validate the prices of the goods financed, which also protects customers.

It is therefore recommended to optimize your market approach as much as possible. For buyers, it is necessary to first obtain an agreement in principle for your financing capacity, so as to subsequently shorten the processing times for your file. For sellers, it is important to surround yourself with reliable and serious professionals, able to recognize the potential of your property and to value it properly. In any case, the added value of being accompanied by specialists is undeniable, and will give you the guarantee to put all the chances on your side in your efforts.