Regulation Effects in the Swiss Property Market

Abstract :

The Swiss property market is an imperfect consisted market which is regulated by the state. For stakeholders, the state’s impact is decisive and significantly influences their action. Unfortunately, the regulation does not always produce the desired effect which unsettles or even deters market participants. Further, the various laws of Switzerland are implemented differently, depending on the canton, which makes work difficult, especially for market participants who operate nationwide.The aim of this study is to compare and analyze government failure with market failure. It should be shown under which circumstances a competitive pricing is possible and how much regulation does make sense. As a contribution to research it is the aim to illustrate the influence of certain circumstances and their actual impact and to create a basis of discussion for the regulation in the field of Swiss residential properties.