Swiss residential property market

Swiss residential property prices saw their strongest acceleration in three years in 2025. Condominiums rose by +4.5% year-on-year in Q4 2025 and detached houses by +5.3%, rates well above the ten-year averages of +3.2% and +3.9% respectively. With the SNB policy rate at 0% and 10-year fixed mortgage rates stabilised between 1.5 and 2.0%, acquisition costs have fallen by more than 42% since the October 2022 peak. 2026 forecasts anticipate moderate but solid growth of +2.8% for condominiums and +3.1% for detached houses, supported by a supply-demand imbalance that will not be resolved for several years.

An acceleration cycle driven by rates and scarcity

2025 marked a turning point in price dynamics after the 2022-2023 slowdown. Apartment prices rose by +0.9% in 2023, +2.0% in 2024, then +4.5% in 2025 (Wüest Partner transaction price index, Q4). Detached houses followed a similar trajectory: +0.7%, +1.2%, then +5.3%. The national median apartment price now stands at approximately CHF 865,000, while the average price per square metre is CHF 8,315/m² for apartments and CHF 7,710/m² for houses.

This acceleration results from the convergence of three factors. First, the six consecutive SNB rate cuts between March 2024 (1.75%) and June 2025 (0.00%) reduced the annual financing cost by approximately CHF 8,000 for an average apartment and CHF 11,000 for a detached house — a decrease of over 42%. Second, the structural housing shortage (vacancy rate at 1.0%) limits available supply.

Mortgage rates: a plateau favourable to buyers

The SNB policy rate has remained at 0.00% since June 2025, confirmed again on March 19, 2026. We do not anticipate any change before the end of 2026, with the first increase expected in H2 2027 at the earliest. Swiss inflation, at just 0.1% in February 2026, creates no pressure on monetary policy.

10-year fixed mortgage rates stand in a range of 1.50 to 2.05% in early 2026. SARON mortgages cost between 0.70 and 1.20%, including bank margin. The new Basel III requirements (effective since January 1, 2025) have led banks to increase their margins, particularly on income properties, commercial real estate and the luxury segment.

Marked regional disparities

Price variations between regions are considerable and have widened in 2025. Central Switzerland shows the strongest increases for apartments (+9.5%), followed by Eastern Switzerland (+6.5%) and Greater Zurich (+4.2%).

By canton, transaction data places Schwyz in the lead (+8.2%), followed by Zug (+6.4%), Graubünden (+5.8%) and Valais (+5.5-5.7%). Central Valais and Upper Valais exceed +7%. Conversely, Ticino recorded a decline of -2.6% for apartments and -4.6% for houses, the only region in negative territory.

Price per square metre illustrates the scale of disparities: CHF 22,350/m² for apartment transactions in Zurich, CHF 21,450/m² in Geneva, around CHF 9,800-11,500/m² in Bern, versus CHF 3,000/m² in rural Jura.

Demographics and demand: structural drivers intact

The Swiss population exceeded 9 million inhabitants at the end of 2024, with net immigration of approximately 90,000 people. Around 80% of population growth comes from migration, with the fertility rate reaching a historic low of 1.29 children per woman in 2024.

This demographic pressure continues to fuel structural demand of at least 50,000 homes per year. Yet the stock grew by only 40,750 units in 2024. The Swiss home ownership rate remains among the lowest in Europe at 36%.

2026 outlook: moderate but sustained growth

The forecaster consensus agrees on an orderly slowdown in price increases. Wüest Partner anticipates +2.8% for condominiums and +3.1% for detached houses in 2026. UBS expects around +3% for the residential sector overall. The UBS real estate bubble index rose to 0.48 in Q4 2025 but remains in the ‘moderate’ zone.

Support factors remain numerous: SNB rate at 0% for all of 2026, persistent supply shortage, tax advantages from the abolition of imputed rental value, and safe-haven appeal of Swiss real estate in an uncertain geopolitical context.

For buyers, the financing window remains favourable. Mortgage costs have fallen by more than 42% since October 2022, and no significant rise is expected before 2027. The challenge for 2026 will be more about finding an available property in a market where supply remains structurally insufficient.

By the Meotis Real Estate team.