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2. Switzerland: New Promised Land of Homeowners
The surge in real-estate prices is the surest sign of a long era of low interest rates. As fixed income lost its allure for institutional investors, they are forced to shop around for other safe yields – and hence pour huge amounts into an already saturated property market.
At the same time, a new class of residential buyers has appeared on the market, helped on by ultra-cheap mortgages. A toxic blend that prompted SNB policy-makers sound the alarm bells.
