Real estate prices in Switzerland: Will they continue to rise until 2026?

Real estate prices in Switzerland: Will they continue to rise until 2026?

Real estate prices in Switzerland are constantly rising nau.ch reported. In 2024, the average increase in property prices was 3.4 percent. The price increase for single-family homes was particularly strong, with an increase of 4.8 percent. These developments are primarily due to the continued high demand for home ownership, which far exceeds supply in many popular regions.

Current challenges in the housing market are also reflected in the falling number of building permits, which have fallen by 25 percent. It is estimated that the shortage of housing could exceed 50,000 by 2026, further exacerbating the precarious situation in the real estate market. Net immigration also contributes to the growing demand for housing.

Low interest rate phase and its effects

Another factor that influences real estate prices is the monetary policy decision of the Swiss National Bank. This cut the key interest rate by 25 basis points in June 2025, which is the sixth interest rate cut in a row. This approach is intended to help combat low inflation and leads to increased demand for SARON mortgages, which are based on the key interest rate. Various types of mortgages are available to buyers, such as the SARON mortgage with a variable interest rate and an unlimited term, as well as fixed-rate mortgages, where the interest rate is agreed for a fixed term, such as on key4.ch is explained.

However, experts agree that no improvement in property prices is expected in the coming years, especially in large cities such as Zurich and Bern. An uncertain environment regarding the duration of the low interest rate phase could also have a negative impact on future demand. Additionally, the labor market and rising unemployment rates are showing signs of weakness, which could also result in a potential decline in housing demand.

Forecasts and purchase recommendations

The Federal Statistical Office predicts population growth of 650,000 to 1.4 million by 2030, which will further increase the need for housing. Against this background, experts advise buyers to actively take advantage of the current phase of low interest rates instead of waiting for property prices to fall. It is clear that market developments present both opportunities and challenges that need to be carefully considered.