Real estate market

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 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.

UBS Swiss Real Estate Bubble Index in the 2nd quarter of 2023

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.

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 real estate market. UBS economists use a model with different subindices to calculate the bubble index. In addition to the ratio of owner-occupied home prices to annual rents, other factors are also considered. These include the comparison of owner-occupied home prices to household income, owner-occupied home prices in relation to consumer prices, loan applications for buy-to-let properties and mortgage volumes in relation to household income.

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. Risks are particularly high on Lakes Zurich and Geneva and in parts of Graubünden. In these regions, purchase prices have risen significantly faster than market rents over the past five years. The higher the mortgage rates, the faster this imbalance should be reduced. The relative risk in Zurich and Geneva has already fallen from “high” to “elevated” in the past half-year, as local home prices have hardly risen at all while rents have continued to rise.

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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