Real estate market

Do you want to buy, sell or build a property? We’ve summarized the most important market information for you. 

In the second quarter of 2023, prices for residential property once again increased more than in previous quarters at 0.8%. While the increase in asking rents accelerated to almost 1%, that came in slightly below the price rise for comparable condominiums. The volume of outstanding mortgages rose the slowest since the 1990s as a consequence of higher financing costs. The economic downturn also slowed household income growth relative to previous quarters.

The UBS Swiss Real Estate Bubble Index remains significantly lower than during the real estate bubble at the beginning of the 1990s. However, the index level has risen significantly since mid-2020 and currently suggests a clear overvaluation of the Swiss market. Owner-occupied housing prices are still proving relatively resistant in the face of increasing financing costs. While a drop in transaction volumes and an increase in offers do indicate a fall in demand for owner-occupied homes, the fact that new construction activity is generally low and continues to decrease makes a considerable price correction unlikely in the near future, in our view.