In the 2nd quarter of 2025, housing prices increased by 5.2% year-on-year, and commercial real estate prices - by 4.1%. Such data was published by the consulting company Wüest Partner.
According to experts, the rise is primarily due to a change in the monetary policy of the Swiss National Bank: it lowered its key interest rate from 1.75% to 0% from March 2024 to June 2025, which made financing cheaper and fixed-rate investments less attractive.
At the same time, the low vacancy rate of only 1% in the residential segment and the continued population growth of about 1% per year contributed to an increase in rental income. There was also a psychological factor: despite the spike in interest rates in 2022, real estate remained a favorite haven for capital preservation.
At the same time, experts warn of possible risks. Low market liquidity and significant capital inflows can lead to disproportionate price increases.
Wüest Partner expects that price dynamics will stabilize in 2026. Investment residential real estate may rise slightly, by 1.5-2%, while commercial real estate prices are likely to remain generally stable.
Source: Swissinfo
