House Prices Rise, Investment Property Values Stagnate

 Basel, 22.07.2024

The Swiss real estate market shows contrasting trends by the end of the second quarter of 2024. While the willingness to pay for home ownership continues to grow, the price development of investment properties is stagnant.

According to the “SWX IAZI Private Real Estate Price Index,” transaction prices for residential property increased by 1.1% from April to June, marking a substantial 4.5% rise over the past twelve months. Single-family homes (+1.2%) and condominiums (+1.1%) saw significant growth, particularly in Central Switzerland and alpine tourist regions.

The pressure on home prices remains high due to a tight supply, with political efforts mainly focused on expanding rental housing. Lower mortgage rates further support homebuyers’ budgets, boosting demand. Those planning to buy a house should take advantage of the low mortgage rates and conduct a mortgage comparison to find the best conditions. A mortgage calculator can help precisely calculate the monthly costs.

In contrast, the market for investment properties has been moving sideways for two quarters. The “SWX IAZI Investment Real Estate Price Index” shows a minimal increase of 0.2% for the second quarter. Despite this temporary lull, demand for residential, office, and commercial space remains robust, indicating potential future price increases.

(Sources: IAZI AG, SWX IAZI Growth Rates Q2 2024 Chart)

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