We’re here for you
Arrange an appointment for a non-binding consultation or if you have any questions, just give us a call.
header.search.error
UBS Real Estate Market Study
Development of real estate prices in Switzerland: What are the forecasts for the real estate market? Which factors are decisive?
Content:
Home prices increased 1.5% quarter over quarter, the highest rise since mid-2022. Compared to the previous year, home prices rose 3.2%. Adjusted for inflation, the price increase was 2.8%.
Asking and existing rents in the first quarter of 2025 were 2.2% and 3.2%, respectively, above the previous year’s level.
The momentum in asking rents has recently slowed significantly. The reference interest rate, which fell in March 2025, is likely to dampen the increase in existing rents in the coming quarters.
UBS Swiss Real Estate Bubble Index in the 1st quarter of 2025: moderate
The UBS Swiss Real Estate Bubble Index rose slightly in the first quarter of 2025, from a revised 0.25 to 0.29 index points. The risk of a real estate bubble is therefore classified as moderate.
The low user costs of homeownership compared to renting, the overall moderate demand for mortgages, and the continued slowdown in residential construction activity make a significant price correction appear unlikely.
What is the UBS Real Estate Bubble Index and how is it calculated?
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:
Depending on the current index value, the real estate bubble risk is divided into the following four categories:
What is the forecast for the development of the real estate market in Switzerland?
Despite attractive financing conditions, a slowdown in home price increases is expected in the coming quarters. Economic growth in Switzerland is at risk of losing further momentum due to US tariffs. Rising uncertainty regarding jobs and incomes is likely to negatively impact demand for homeownership. Overall, we expect residential property to become 3 to 4% more expensive this year.
The map shows price developments over the last five years for all 106 Swiss economic regions, as well as an indication of regional risk based on the development of the price-to-income and price-to-rent ratios.
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.
Arrange an appointment for a non-binding consultation or if you have any questions, just give us a call.
Disclaimer