Engel & Völkers

The real estate price development for residential real estate in Switzerland 2025

We are delighted to share our unique knowledge of the local markets with you again this year. In our Residential Real Estate Market Report Switzerland 2025, we inform you about the current situation in around 50 regional submarkets in Switzerland and our respective assessment of demand and price trends for 2025.

Download (english coming soon)

Market dynamics, planning security and growth opportunities are the focus of market players.

The Swiss economy continues to show itself from its stable side. GDP growth of 1.2 % is expected in the current year, while the expected interest rate cuts will further support the economy and GDP growth of 1.6 % is even forecast for 2025. The labor market is currently quite dynamic, with around 60,000 new jobs created in the second quarter of 2024, while the unemployment rate is low relative to Europe (2.5%).

However, the tense geopolitical situation caused by the ongoing conflicts in Ukraine and the escalating tensions in the Middle East pose a latent risk for international trade and energy prices, which could have a negative impact on the Swiss economy. The strong purchasing power of the Swiss population and the current interest rate situation, however, support stable real estate demand.

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Stores
The lower financing costs in connection with sharply rising rents make buying real estate more financially attractive than renting.
Thomas Frigo

Managing Partner & Member of the Board

RESIDENTIAL REAL ESTATE SWITZERLAND 2025

Stable price development and good market prospects

  • Real estate market

    Since owner-occupier households are not under pressure to sell when interest rates fall, the supply of properties will remain scarce, as will new construction. Consequently, the increasing demand overhang will continue to drive prices in the owner-occupier home market, as will further interest rate cuts that are expected. Accordingly, the Swiss residential real estate market will continue to be characterized by a high degree of stability in 2025.

  • Interest rate trends

    In view of the inflation rate, which has fallen more sharply than expected in the recent past due to the sharp decline in fuel prices, interest rate adjustments by the Swiss National Bank are expected in 2025. For the year 2025, inflation is generally expected to be around 0.7 %. This improves the planning outlook for real estate buyers who want to purchase property to secure their assets.

  • Price trends

    For 2025, Wüest Partner expects prices of condominiums to increase by 3.4 % and those of single-family homes by 3.0 %. The market for second homes is also developing with a continuously strong price dynamic. The noticeable decline in financing costs, coupled with the sharp rise in rents, will make buying real estate financially more attractive again in the long term than renting.

Coming soon!

You can read further assessments of market and price trends for various major regions and their submarkets in Switzerland in our residential real estate market report, which will be available to you as a free download in January 2025.

Local real estate advice

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Do you have further questions about the local real estate market or need support in buying or selling a property? Our real estate agents from across Switzerland will be happy to help you.

Contact

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Engel & Völkers Switzerland

Poststrasse 26

6300 Zug | Switzerland

Tel: +41 41 500 06 06