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UBS says Switzerland’s real estate bubble risk continues to exist

by Jonathan Adams

Risks to the Swiss property market remained elevated in the second quarter of 2016, with rock-bottom interest rates propping up demand for residential assets to be rented out for investment purposes.

Still, UBS Group AG’s index experienced a “slight” decrease in the period, according to economists Matthias Holzhey and Claudio Saputelli. That’s because of a slowdown in the pace of mortgage growth and a 0.6 per cent decline in home prices on an inflation-adjusted basis.

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