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

As a result of the weak economic situation, household income stagnated in the fourth quarter of 2023. Consumer prices were even down slightly quarter-over-quarter. The prices for owner-occupied housing, meanwhile, climbed 0.9% in the fourth quarter of 2023, further eroding the long-term affordability of residential property. Quarter-over-quarter, rents rose at the same rate as purchase prices for condominiums, but on a year-over-year basis, asking rents rose almost twice as much at 5%.

UBS Swiss Real Estate Bubble Index in the 4th quarter of 2024

The UBS Swiss Real Estate Bubble Index is significantly lower than during the real estate bubble at the beginning of the 1990s. Nevertheless, it still currently suggests a clear overvaluation of the local owner-occupied housing market. Owner-occupied housing prices continue to remain resistant in the face of increasing financing costs. A low rate of new construction overall and accelerated immigration mean a price correction is unlikely in the near future. In the medium term, the imbalances in the market should at least remain stable due to rising rents.

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 Lake Zurich, in parts of Graubünden, in the St. Galler Rhine valley, and in the Lausanne region. In these regions, purchase prices have risen significantly faster than market rents over the past five years. This development is not sustainable, in our view, especially against the backdrop of rising financing costs. By contrast, this relative risk has fallen in Zurich and Geneva over the past year from "high" to "slightly elevated." In the Geneva region, this decline was driven by prices stagnating in the previous quarters. The sharply rising rents in Zurich have also put the price development for owner-occupied housing into perspective.

Real estate prices in different regions in Switzerland are compared with rental prices. The resulting map shows which regions are at risk of a real estate bubble.
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

These articles might also interest you

We're here for you when you need us

Make an appointment for a non-binding consultation or call us directly if you have questions.