The demand for suburban real estate in the tourist regions of Switzerland remains extremely high, which provokes price growth, significantly outpacing the indicators in the primary housing market.
According to a recent study by the consulting company Wüest Partner, the cost of "second homes&"it is growing much more dynamically than the cost of houses and apartments for permanent residence.
Analysts have estimated that since the beginning of 2020, middle-class country houses in popular tourist regionshave risen in price by an average of 46%. This means annual growth of 6.5%. For comparison: apartments used as main housing have increased in price by 32% (4.6% per year) over the same period .
Cantons have become record holders in terms of price increase Grisons (+7.7% annually) and Central Switzerland (+8.3%). In canton Vale prices increased by 6.2%. However, there is also an outsider: in Ticino , the suburban housing market practically stands still. If we take the prices of 2016 as 100, then today in the southern canton the index is only 105 points, while in the same Grisons 152, and in Central Switzerland 163.
Interestingly, by the end of 2025, the hype has subsided slightly: experts note the normalization of the market. In 2025, prices for second homes are expected to rise by 4.3%, which is almost equal to the rise in prices for new buildings (4.5%).
Analysts at Wüest Partner identify three main reasons for the boom in the country house market:
1. Digitalization and remoteness.The trend towards combining work and leisure (workation) has become possible thanks to the development of technology. People are increasingly willing to buy houses in beautiful places with good transport accessibility in order to live there for a long time.
2. Year-round tourism. Regions that attract visitors not only in winter but also in summer are becoming favorites for buying real estate.
3. Supply shortage.Due to the famous Swiss Law on Second Homes and strict territorial planning, it is practically impossible to build new housing in resort areas. Demand constantly exceeds supply, which inevitably pushes prices up.
The situation is also aggravated by a sharp reduction in the number of apartments on the market. Before the pandemic, the choice was relatively large, but the surge in demand in recent years has led to the fact that in some regions (especially in Grisons) it has become more difficult to find a vacant facility than in large cities.
Experts are confident that prices will continue to rise, albeit at a more moderate pace. There are no prerequisites for a decline in demand: flexible working hours remain the norm, and the love of the Swiss mountains has not gone away. There are also no changes expected from the supply side - there is practically no place to build new houses according to the law.
"Housing stock cannot grow as fast as demand. The situation of chronic excess of demand over supply remains, which means that prices will only rise," the experts of Wüest Partner summarize.
Source: Swiss Info
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