Unlocking homeownership : a strategy to reverse Switzerland’s declining ownership rate
SONAR|HES-SO
- Budusan, George
- Meidell, Jan Erik (Degree supervisor)
- Genève : Haute école de gestion de Genève
94 p.
Bachelor of Sciences HES in International Business Management: Haute école de gestion de Genève, 2023
English
The research endeavour consists in providing a comprehensive analysis of the Swiss real estate market, focusing on the challenges faced by households in achieving homeownership. With the current situation being characterized by low vacancy rates, limited construction potential undermined by strict spatial planning laws, and tight financing norms, property prices have known a nearly uninterrupted rise in over 25 years. Households on the other hand, do not benefit from equal rises in their income, and current property prices are already putting mortgages out of reach of the extreme majority of them.
To address this challenge, the study explores alternative solutions to bypass these hurdles and open ownership opportunities for the future. Of the found solutions, the expansion of the land lease model has been deemed the most suitable since it is already in moderate use in Switzerland, does not create financial harm, nor does it require any additional legal or technical frameworks, and has proven effective in promoting homeownership in other economies. The montage being explored consists of landowners selling condominium lots under land lease agreements to become the property of the private households who will buy them. The fractioned purchase price allows for many more households to take out a mortgage whilst respecting the prudent mortgage norms that protect Switzerland’s financial stability.
The study then conceptually tests the solution by employing a robust forecasting model that takes into account actual Swiss household compositions, demographic dynamics, wage levels, construction constraints, and mortgage norms to project homeownership and property prices over a 15-year period. The findings support the suggestion that an expansion of the leasehold property model can help reverse the declining trend of private ownership in Switzerland.
Based on the research findings, the report recommends that both public and institutional investors adopt the land lease model. This solution not only provides homeownership opportunities but also aligns with spatial planning objectives and can potentially lead to a more sustainable housing market by sharing the costs of future energy renovations.
To conclude, the comprehensive analysis, forecasting model, and industry experts’ insights contribute to a better understanding of the real estate market dynamics and provide recommendations for all actors to address the current challenges stemming the said market.
To address this challenge, the study explores alternative solutions to bypass these hurdles and open ownership opportunities for the future. Of the found solutions, the expansion of the land lease model has been deemed the most suitable since it is already in moderate use in Switzerland, does not create financial harm, nor does it require any additional legal or technical frameworks, and has proven effective in promoting homeownership in other economies. The montage being explored consists of landowners selling condominium lots under land lease agreements to become the property of the private households who will buy them. The fractioned purchase price allows for many more households to take out a mortgage whilst respecting the prudent mortgage norms that protect Switzerland’s financial stability.
The study then conceptually tests the solution by employing a robust forecasting model that takes into account actual Swiss household compositions, demographic dynamics, wage levels, construction constraints, and mortgage norms to project homeownership and property prices over a 15-year period. The findings support the suggestion that an expansion of the leasehold property model can help reverse the declining trend of private ownership in Switzerland.
Based on the research findings, the report recommends that both public and institutional investors adopt the land lease model. This solution not only provides homeownership opportunities but also aligns with spatial planning objectives and can potentially lead to a more sustainable housing market by sharing the costs of future energy renovations.
To conclude, the comprehensive analysis, forecasting model, and industry experts’ insights contribute to a better understanding of the real estate market dynamics and provide recommendations for all actors to address the current challenges stemming the said market.
- Language
-
- English
- Classification
- Economics
- Notes
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- Haute école de gestion Genève
- International Business Management
- hesso:hegge
- Persistent URL
- https://folia.unifr.ch/global/documents/327638
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