The risk of a bubble in the Swiss property market increased slightly in the first three months of the year compared with the previous quarter, according to UBS. However, this risk is more moderate for owner-occupied housing. + Get the most important news from Switzerland in your inbox The UBS Swiss Real Estate Bubble Index has risen to 0.29 points, compared with 0.25 points previously, indicating that the risk of a property bubble is considered "moderate", said the major bank in a report published on Thursday. A correction in property prices would therefore be unlikely, said the authors, who point to moderate mortgage demand and a construction sector that is still slowing. Prices of owner-occupied homes rose by 1.5% compared with the previous quarter. Year-on-year, they rose by 3.2% in nominal terms, or 2.8% in real terms. Rental property prices rose by 2.2% and 3.2%, respectively, year-on-year. UBS predicts that the Swiss National Bank's (SNB) cut in key interest rates in March ...
