Tariffs and interest rate policy
Should a trade war actually occur, inflation and, as a result, interest rates are likely to rise noticeably in many countries. Switzerland could not escape this trend either. In turn, rising mortgage rates could dampen demand for property and put pressure on prices.
Switzerland as a safe haven
In uncertain times, investors are looking for stable investment opportunities. Switzerland and its property market could benefit from this need for security. While the Lex-Koller limits the acquisition of residential property by foreign investors, demand for commercial property could increase significantly, which could further boost prices.
Keep an eye on exchange rates
Rising inflation could destabilise the global currency structure. A strong Swiss franc could weigh on the export industry and have an indirect negative impact on the property market. In addition, Swiss property ownership becomes less attractive for foreign investors. Conversely, a weaker franc could support demand for domestic property in the short term.
Conclusion
Donald Trump’s second term in office could bring both risks and opportunities for the Swiss property market. While rising interest rates could curb demand, Switzerland could benefit as a safe haven for investments. Currency developments remain a decisive factor that could have both positive and negative effects.
