Swiss Construction Boom: Tax Change Drives Heating System Demand, Meier Tobler Shares Surge
The Swiss construction market is abuzz with activity following the elimination of the self-occupied value tax. This move, approved in a referendum at the end of September, has sparked a significant increase in demand for new heating systems and energy-efficient renovations. As a result, shares of companies like Meier Tobler, a key player in heating technology, have soared to a ten-week high.
UBS, a leading bank, anticipates price hikes of two to three percent for new buildings and first-time buyers due to the tax change. Experts predict a boost in demand for modern heating systems, benefiting the construction and building technology sector, including Meier Tobler. The company's share price has surged, with the main increase occurring in the last trading days of September.
Wüest Partner, a real estate consulting firm, expects increased demand for renovations, particularly for single-family houses, until the regulation comes into force in 2028. The elimination of tax deduction possibilities is acting as a catalyst, driving advance effects in the construction industry. However, the long-term impact on rental prices in 2028 remains uncertain, depending on factors such as demand, supply, and regulatory measures like the rent cap.
The elimination of the self-occupied value tax has had an immediate and positive impact on the Swiss construction market. It has increased demand for new heating systems and renovations, benefiting companies like Meier Tobler. While the short-term effects are clear, the long-term influence on rental prices remains to be seen.
