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switzerland property market showing stable growth of sustainable recovery

News Posted On: 10 December 2009

Switzerland's property market is currently one of the best performing in the world, according to new data.

Global estate agency Knight Frank has just released its data on world house prices in the third quarter, and it shows that Switzerland house prices grew an incredible 7% in the year ending the third quarter.

The index is done in chart format, and Switzerland's performance put it in 3rd position, behind Austria, Malta (tied 2nd) and Israel (1st). But unlike the 2nd positioned countries, Switzerland had also presented house price data in Knight Frank's second quarter index, which also showed the countries' performance on a quarterly basis.

In the second quarter index, Switzerland was in 2nd place on an annual basis, and 7th place on its quarterly performance. It is true, Switzerland's quarterly performance has not been as spectacular as some, but the picture that is emerging makes Switzerland look like a far better investment option than many of the countries that have been experiencing phenomenal quarterly house price growth.

According to the Knight Frank second quarter index, Switzerland property prices grew 0.5% in Q4 of 2008, 2.1% in Q1 2009, and 2.1% again in Q2. The third quarter index then tells us that prices grew 2.7% in the third quarter.

This is a very steady growth pattern that indicates stability in the market, rather than speculative growth or the formation of another bubble. If you asked me which of the countries experiencing growth, is most likely to be seeing the start of a sustainable recovery, I would put my money on Switzerland every time.

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