The Swiss real estate market is experiencing a resurgence in confidence due to interest rate cuts and a stable economic environment.
Despite ongoing challenges in the manufacturing sector, the services sector has shown promise. The Swiss economy recorded moderate growth rates in the first half of 2024, driven primarily by the chemical and pharmaceutical industries. However, the labor market has not fully aligned with economic performance, as the unemployment rate has risen.
The Swiss National Bank has been able to lower interest rates due to low inflation, and this has improved investor sentiment in real estate investments. Demand for rental properties remains strong, driven by population growth and high demand for rental apartments. The vacancy rate has declined, and rents have increased.
The commercial real estate sector faces challenges due to uncertainty in space requirements, but positive employment growth supports demand for office space. The Swiss real estate market is recovering, with potential for growth in both residential and commercial segments.