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The UBS study forecasts a 4% rise in single-family home prices by 2025, while rental property prices are expected to increase by around 3%. The aging population is likely to worsen the housing shortage, as older individuals tend to move less, leading to a widening gap between asking and existing rents, particularly in major urban centers like Geneva and Zurich. Despite low mobility and regulatory challenges, demand for new housing is rebounding, although construction is not anticipated to accelerate until 2026.
Home ownership in Switzerland is increasingly out of reach for young households, with rising costs and a significant shortage of supply. A UBS study indicates that even with a high income of CHF 200,000, nearly half of properties are unaffordable, forcing many to save longer or move away from city centers. Additionally, rents are projected to rise by 2.5% for asking rents and 1.5% for existing rents, contributing to a stagnating real estate market.
The Swiss National Bank (SNB) is expected to cut the key interest rate to 0.25% in March, marking a potential end to further reductions amid declining inflation. Economists predict a shift towards interest rate hikes by 2026, influenced by economic growth and rising inflation, which could lead to increased mortgage costs and marginal rent reductions for tenants.
Living in large Swiss cities like Zurich and Geneva has become increasingly unaffordable for families, leading to a rise in the attractiveness of agglomerations and medium-sized cities such as Aarau, Murten, and Martigny. These areas offer good infrastructure, leisure facilities, and significantly lower rents. While there is a risk of rising prices in these locations, they are unlikely to reach the levels of the major cities, making them appealing for families and high earners alike.
Thomas Rieder
People
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
swiss real estate market faces challenges amid rising prices and aging population
07:00 04.04.2025
young households struggle with rising home ownership costs in switzerland
13:01 03.04.2025
swiss national bank signals shift in monetary policy towards interest rate hikes
Swiss Franc
Zürcher Kantonalbank
Bank J. Safra Sarasin AG
Luzerner Kantonalbank
CHE
Elias Hafner
Thomas Rieder
Karsten Junius
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18:00 26.02.2025
affordable living in suburban areas attracts families in switzerland
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