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Cyclical behaviour of the Swiss real estate market

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Listed:
  • Thomas Ankenbrand
  • Fabian Kostadinov
  • Faten Ben Bouheni
  • Mondher Bellalah

Abstract

The influence of the last real estate crisis in Switzerland, in the '90s, was severe. Here, we seek to analyse the Swiss real estate market using agent-based modelling (ABM), from December 1986 to September 2014. Our model combines explicit knowledge of behavioural patterns of the agents, with implicit knowledge in the form of time series analysis. Findings are in line with other markets, indicating that the Swiss real estate market is pro-cyclical. If the trend of historically long-term increasing prices on the Swiss real estate market stops, we would expect a hard landing. Then, if regulation reduces the increasing real estate prices, this would lead to a drop in long-term prices.

Suggested Citation

  • Thomas Ankenbrand & Fabian Kostadinov & Faten Ben Bouheni & Mondher Bellalah, 2020. "Cyclical behaviour of the Swiss real estate market," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 39(1/2), pages 71-99.
    • Handle: RePEc:ids:ijesbu:v:39:y:2020:i:1/2:p:71-99
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    References listed on IDEAS

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