Real estate markets are heavily dependent on the cost of construction. COVID 19 has created many logistical challenges and we are seeing the effects on the housing market.
Many thanks to Harriet Kibbe. Every month she provides us with current developments of the local Nyon Real Estate in real-time!
If you are among the many people wanting to buy your own house, you may be wondering how you can possibly get your hands on the right one before anyone else does. Unfortunately, the situation now is a lot tougher than it was.
The lack of supply means that prices for existing properties have continued to increase since March 2020. Buyers are having to use creative solutions to find more funds from their own pockets as the banks are unwilling to follow the price hike.
There is little available on the open market and due to the increased costs of wood and steel in springtime, construction costs for new builds have spiked. The logistical challenges that we are experiencing worldwide have affected many industries. Some of those who have bought properties off-plan have faced several months of delays in construction and unexpected additional costs.
Recently the price of wood has now returned to a record low, and although the price of steel has increased, it remains a manageable increase. The price of aluminium has also increased by over 30% since January 2021 and PVC over 115%.
Factors that may be causing these increases could be the extraction or production of resources. Or indeed, issues with the supply chain due to the pandemic halting workers, as well as other coincidental issues affecting production. The main culprit though actually appears to be the long delays in shipping and hopefully going forward will smooth themselves out and prices will be corrected in the coming 12 months.
So to leave you on a positive note, after an understandable downward turn, for those of you who are intent on building your own little nest, things are looking up! Now all you need to find is that perfect piece of land…
Harriet has lived in the Geneva-Nyon area on and off since 1988, growing up as part of the transient international community. Having moved several times she has always offered her help to newcomers and people from the international community to assist in their integration and understanding of the region. Access Harriet’s previous Living in Nyon article on mortgages here.