Trends in the Swiss Real Estate Market

Dear Reader,
the Swiss real estate market in 2025 shows stability and dynamism, but also strong territorial imbalances. Here are the most significant trends:

1. Moderate price increases

• In the first quarter of 2025, house prices rose by +1.5 % quarter-on-quarter and +3.2 % year-on-year, corresponding to a real increase of 2.8 %.
• Wüest Partner forecasts an average increase of 3-4 % nationally in 2025, with a slight slowdown to 2-3 % in 2026-27.
• Engel & Völkers confirms similar estimates: +3.4 % for condominiums and +3.0 % for single-family homes.

2. Strong demand and insufficient supply

• Resident population grew at +1.7 % in 2023 (plus 146 900 people), driven by immigration, with over 80 000 new residents estimated in 2024
• The national vacancy rate fell to record levels (around 1 % or less), with peaks of 0.58 % in Zurich and Geneva.
• Although building permits have increased, many constructions are delayed or postponed, keeping supply below demand.

3. Rents up, but with expected discounts

• New rents increased by +1.8 % quarter-on-quarter and +2.4 % year-on-year in Q1 2025.
• In Zurich and Geneva, new rents are growing faster (Zurich: +1.9 %; Geneva: +2.2 %).
• The cut in the reference rate by the SNB (around 0.5 %) could allow contractual reductions of up to -2.9 % in current rents.

4. Peri-urban areas and prime locations

• Expensive cities such as Zurich, Geneva, Lausanne and Basel drive buyers towards well-connected and less crowded locations, such as Glattal, Aargau, March-Höfe or Lucerne.
• In 2025, average prices in Zurich city are CHF 18,698/m² (+11 % over 2023-25), while in Glattal they are CHF 12,133/m² (+5 %).

5. Foreign interest in Alpine resorts

• Resorts like Andermatt, Wengen and Verbier attract international investors thanks to favourable tax agreements, year-round tourism infrastructure and fewer restrictions thanks to the Lex Koller exemption.
• In Andermatt in 2025, applications arrived for more than 1,260 flats from US buyers, with a sales and deposit value of around CHF 14.2 million, almost double the previous year’s figure

In summary:

If you are buying, selling or considering investments in Switzerland, here is what to keep in mind:

• Expect moderately rising prices but continued pressure for limited supply.
• Demand is stronger in certain cantons: Zurich, Lucerne and peri-urban areas are on the rise.
• Low mortgage rates make buying more affordable, especially for investments.
• Luxury Alpine locations continue to attract international buyers, especially from the US.

Your anfina