The real estate market in the St. Gallen region is currently experiencing high demand and limited supply, particularly in the condominium and single-family home segments.
Only 3.5 percent of existing condominiums are available for sale, which is lower than the national average. This scarcity is further fueled by strong immigration and population growth. The St. Gallen area is a desirable location for homebuyers, accounting for approximately one-third of all ownership changes within the canton.
In terms of pricing, condominium prices in the St. Gallen region have increased by 2.7 percent compared to the previous year, which is lower than the national average increase. On the other hand, prices for single-family homes have remained stable, contrasting with the nationwide trend of price increase for such properties.
There has been a significant increase in search queries for condominiums on marketing platforms, indicating a growing interest in residential properties, particularly in the condominium segment. Single-family homes also remain popular, contributing to the ongoing supply gaps across various price categories and sizes.
Looking ahead, the St. Gallen region is expected to continue experiencing growth in its real estate market. The area is attractive for living and working, leading to a strong influx of new residents. Falling mortgage interest rates are also stimulating interest in purchasing residential properties. Experts predict that prices for both condominiums and single-family homes will continue to rise into 2025, reflecting the high demand and limited availability in the region.
As the real estate landscape in St. Gallen evolves, potential buyers and investors will need to navigate the complexities of a market defined by its unique characteristics. Demographic trends, economic factors, and shifting buyer preferences will continue to shape the region's real estate dynamics, making it an attractive market for residential property investment.