Prices for residential property in Switzerland will rise in 2023: Financial expert analyzes developments and mortgage trends

Prices for residential property in Switzerland will rise in 2023: Financial expert analyzes developments and mortgage trends

In Switzerland, prices for residential property will have become more expensive in 2023. Prices rose, especially towards the end of the year. Condominiums recorded a price increase of 1.6 percent, and single-family homes even rose by 4.5 percent in the second half of the year. French-speaking Switzerland recorded a stronger increase in single-family homes, while prices for condominiums rose more sharply in German-speaking Switzerland. At the same time, demand for money market (Saron) mortgages continues to lose popularity, while short-term mortgages are in vogue. Fixed-rate mortgages with a term of 10 years are becoming increasingly popular again.

These developments on the real estate market in Switzerland show that demand for residential property remains high and prices are expected to continue to rise. The increase in prices towards the end of the year in particular suggests that this trend could continue in 2024. The shift from Saron to fixed-rate mortgages and the growing popularity of 10-year fixed-rate mortgages confirm the trend towards long-term and stable financing options. This could help stabilize the market in the long term and reduce potential risks of speculative price bubbles.

According to a report by www.swissinfo.ch