“Tackling certain issues on a larger scale” Interview with S. Ginesta, Engadiner Post, 27.12.2022

Engadiner Post: The problem of the shortage of housing for locals was already discussed a year ago. That has become more pronounced this year, was that to be expected?

Sascha Ginesta: Yes, and I see various reasons for this. On the one hand, businesses have invested, for example the hotel industry. This requires more staff and, consequently, additional living space. Corona also plays a role. In the tourist regions, we have seen many newcomers from the lowlands, which has intensified the competitive situation on the housing market. We have also noticed that more apartments are being rented out permanently as second homes due to coronavirus. In addition, apartments that were previously rented out have been converted into vacation apartments.

The municipalities often tackle the problem alone. Shouldn’t it be solved regionally?

In principle, I think very highly of municipal autonomy. Every municipality has a different problem. It is right that the municipalities try to solve their problems on a small scale. But I am also convinced that there is a need for bodies at a higher level, whether at regional or cantonal level, to address this issue. Specifically, the canton is concerned with the basis for calculating building zone requirements. Keyword zoning in and out. This is a problem that the municipalities cannot solve themselves. Certain issues need to be tackled on a larger scale. The municipalities in the region that have building land reserves should coordinate this among themselves. It makes no sense to build the same thing in every municipality. Not only do we need staff apartments, but also family apartments. One municipality is better positioned than the other. The question of whether a municipality builds itself, whether it is investors or a cooperative, can also be considered on a larger scale. 

Until recently, cooperatives were only a marginal topic in the Engadin. Now we keep hearing about municipalities that could imagine cooperatives as investors or property developers. Is this a promising way forward?

Historically, housing cooperatives have their origins in the fact that SBB or Swiss Post, for example, had land that they contributed to a cooperative in order to provide housing for their employees. Or you can buy into a cooperative and buy or rent an apartment in return. This is not entirely unproblematic for upcoming major investments if the cooperative members have to pay for the financing if there are no reserves. Personally, I prefer cooperatives in which someone donates money or land to be used for a specific purpose. For example, if a municipality outsources a plot of land to a cooperative and then builds on it on behalf of the municipality. This means that the municipality retains control over the statutes and rental regulations. If the property is sold to an investor, you no longer have this option. 

A brief look at the second-home market: high demand continues to meet low supply. What happens next?

Demand actually fell after the first corona wave and now, with rising interest rates, it has fallen further. Influences such as the crash of cryptocurrencies or falling stock market prices also mean that there is currently less money in the market, which is depressing demand. But compared to the pre-corona period, demand is still much higher. The second problem is that there is no offer. Virtually nothing comes onto the market. So there can be no price correction. We do not see a trend reversal in prices. Something very serious would have to happen for many apartments or properties to come onto the market or for demand to collapse completely.

Not so long ago, every apartment was bought virtually blind. At least that has changed?

Absolutely. A year ago, we were able to sell practically everything without having to do anything major. Today, you have to think again about how to position an apartment or property correctly on the market. This also makes the job more exciting for our Real Estate consultants. If you had asked me four years ago how long it takes to sell a property, I would have said six to nine months. That was the usual time horizon. In the last two years, this figure has fallen to less than two months, which was also not healthy for the market. I think we are now slowly getting back into a good balance.

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