Real estate

The latest info on the Swiss real estate market

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

How real estate prices have changed in Switzerland

In 3Q22, prices for owner-occupied properties were again unaffected by the rise in mortgage interest rates and increased by a further 1.4% quarter-over-quarter. Consumer prices remained constant during the period.

Risk of a real estate bubble: Real Estate Bubble Index

The UBS Swiss Real Estate Bubble Index shows the risk of a real estate bubble – a significant overvaluation of real estate and the likelihood of an imminent price drop – on the Swiss property market. UBS economists use a model with different subindices to calculate the bubble index. In addition to the ratio of home prices to annual rents, other factors are also considered. These include the comparison of house prices to household income, house prices in relation to consumer prices, loan applications for buy-to-let properties and mortgage volumes in relation to household income.

UBS Swiss Real Estate Bubble Index in the 3rd quarter of 2022

The UBS Swiss Real Estate Bubble Index rose only slightly q/q to 1.53 points in 3Q22. This means that the market for owner-occupied homes remains overvalued compared to developments in the past. A rise in real prices for owner-occupied homes contributed to the higher index value. Also, the fact that prices and rents continued to drift apart resulted in an increase in imbalances.

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 local housing market. However, we believe a price correction is unlikely in the next 12 months due to the limited supply of owneroccupied properties.

Download our detailed analysis now

The more you know, the more you understand: you’ll find our complete analysis of the Swiss housing market in the latest issue of the Swiss Real Estate Bubble Index.

Regional risk map

The regional risk map shows the regions where the risk of a real estate bubble is highest and where the population has been declining for three years. As at the start of the year, the regional risks are concentrated in the regions of Zurich and Lake Geneva. There is also an increased risk in Oberengadin and Davos. By contrast, the risk in Basel City is now lower than it was at the start of the year.

Sources: Wüest Partner, FSO, UBS. The regional analysis is based on the change in the local price-rental ratio over the last five years.

The facts about your preferred municipality

Do you want to understand how property prices or population levels have changed in a municipality? Or how the location is perceived in general? How high are taxes? The UBS municipality guide is free of charge and answers all your questions.

FAQ real estate prices and real estate bubble

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