The Swiss real estate market is projected to see a 3 to 4% increase in owner-occupied home prices in 2024. However, there are regional disparities and varying levels of risk within the market.
Housing prices have risen by 0.7% in the third quarter of 2024 compared to the previous quarter, with a year-on-year increase of 2.8%. Rental momentum has slightly weakened, with stable rents in Q3 2024 but a nearly 4% increase compared to a year ago.
Regional disparities are evident in French-speaking and German-speaking areas, with potential imbalances in certain municipalities. The UBS Real Estate Bubble Index currently stands at 0.41 points, categorizing the risk as moderate.
The Swiss real estate market is experiencing a resurgence in demand, driven by lower mortgage interest rates and rising rents. Overall, the market dynamics indicate a resilience that could support continued price growth, but stakeholders are advised to remain vigilant.