Extremely hot, record-breaking weather has been having a significant effect on daily life in Switzerland – including the real estate market.
So far this summer, the heatwave – reaching 39C in Basel and mid-30s in other parts of the country – has caused a disproportionately high number of deaths in Switzerland: the latest federal mortality figures show that the 13 days of intense heat during the second half of June claimed around 200 additional lives among people over 65.
Mortality among the older population during that heatwave was therefore 15 percent above the ‘normal’ level (or in excess) expected for this time of year.
Heatwaves also put Switzerland’s infrastructure at risk.
Some motorways, for example, are, quite literally, crumbling under heat: the older ones, built on concrete slabs, can expand in high temperatures, leading to cracks.
Railway tracks are vulnerable as well because the steel from which the tracks are made can heat up to over 50C and deform.
Extreme temperatures can also cause sudden buckling – a lateral movement of more than 50 millimeters in a rail.
READ MORE: How the heatwave has hit daily life in Switzerland
But that’s not all.
‘Hot properties’
In this case, this doesn’t mean houses and apartments that are in a particularly high demand.
Instead, it refers to climate change.
Normally, demand for real estate in Switzerland is determined by a variety of factors such as location, mortgage interest rates, as well as the size and age of the property.
Weather doesn’t play a role in the majority of transactions.
But that is now changing.
What is happening?
Driven by climate crisis, increasingly intense heat has consequences on the property market.
This may not be something that is automatically associated with heatwaves, but the fact is that climate change is increasingly impacting the planning, construction, renovation, and sales of residential buildings.
For instance, a top-floor apartment in the city, with large windows, a balcony, and a lake view could lose its appeal because it heats up significantly during extremely hot weather.
“We need to consider how demand will develop in the medium term,” said Matteo Molteni from Zurich Real Estate Consultancy company.
“The question is whether a penthouse apartment – currently the most sought-after apartment in a building – will still be in such high demand in ten or twenty years.”
“In the past, the main focus was how well a building could store heat in winter,” he pointed out. “Today it’s just as important how well it keeps the heat out in the summer.”
