There are signs of a cooling down in the real estate market in ten cantons
Keystone-SDA
Switzerland’s property market is expected to feel the impact of demographic change increasingly sharply over the coming years. An ageing population and growing demand for smaller homes are likely to put pressure on some regions.
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MoneyPark’s property analysts have reached this conclusion: demographic trends are creating deep structural challenges for the housing market in several Swiss cantons. According to the report published on Wednesday, the impact is particularly acute in ten of the country’s worst‑affected cantons.
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Demographic pressures
These include canton Ticino, Bern, Neuchâtel, Jura,
Appenzell Outer Rhodes, Nidwalden, Obwalden, Graubünden, Glarus and Schaffhausen. Together, they account for roughly 23% of Switzerland’s total mortgage volume.
At the same time, these cantons are undergoing the sharpest demographic shifts and, according to the study, are already seeing housing demand stagnate or even start to fall.
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At the heart of the issue is the age profile of these regions. Almost all population growth in these cantons is coming from people over the age of 65.
“This age group rarely moves and creates very little demand for new housing,” says MoneyPark CEO Lukas Vogt. At the same time, the number of people of working age is falling.
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As a result, the pool of potential buyers and tenants is shrinking, which is dragging down transaction numbers and slowing price growth. In several cantons, including Ticino, Graubünden and Jura, this trend is already clear. Demand for homes is weak, properties are taking longer to sell and price cuts are becoming more common.
Translated from German by AI/sp
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