The residential property market in Obwalden is experiencing a significant increase in prices for single-family homes and condominiums. This price increase surpasses the national average in Switzerland, indicating a strong demand for home ownership despite the rising costs.
The limited supply of residential properties in Obwalden is a key factor driving these price hikes. Only 5 percent of building zones remain unused, contributing to a 2.8 percent increase in the owner-occupied home market over the past six months, which is higher than the national average increase of 1.9 percent. As a result, potential buyers are facing higher costs, with single-family homes seeing a price rise of 2.5 percent by the end of September.
There are significant price variations among different municipalities in Obwalden. Engelberg and Sarnen have the highest average prices, while Lungern offers a more affordable option.
The condominium market is also experiencing impressive growth, with prices increasing by 3.1 percent in the last six months, higher than the national average of 2.1 percent. On average, a four-and-a-half-room apartment with 140 square meters of living space and a balcony costs around CHF 1 million.
Several factors contribute to the rising property prices in Obwalden. The limited supply of residential properties and strong demand for home ownership create a competitive market environment. The scarcity of land reserves further exacerbates the situation, making it challenging for potential buyers to find suitable properties. These trends are expected to continue, with forecasts indicating further growth in the housing market by fall 2024.
The appeal of Obwalden as a residential destination is also influenced by its scenic landscapes and recreational opportunities, attracting both local and international buyers. Stakeholders in the real estate sector are closely monitoring these trends, as they could have broader implications for the Swiss housing market as a whole. The sustained interest in home ownership, despite rising prices, suggests a resilient market that may continue to thrive in the coming months.