Prices of single-family homes and apartments in Switzerland have increased greatly in the last 10 years with one canton seeing a massive 80 percent rise.
All types of properties will become more expensive in 2025, according to a new study by Wüest Partner real estate consultants.
For single-family homes, for instance, you would have to pay nearly 4 percent more — 3.8 percent to be exact—on average than in 2024.
When compared to 10 years ago, houses now cost over 40 percent more.
Apartment prices have also been climbing, having gone up by 3.6 percent — that is quite a bit higher than in 2015, when the annual increase was 2.9 percent.
This means that today you would have to pay 33 percent more to buy a flat today than a decade ago.
Those are the national averages, but the situation is even more dire (price-wise) in some cantons.
Where in Switzerland have property prices risen the most?
Price evolution depends on whether you are looking to buy a single-family house or an apartment.
In terms of houses, the largest increases during the past 10 years have been recorded in central Swiss cantons such as Uri (up by 80 percent) and Nidwalden (77 percent).
For apartments, Zug experienced the most substantial hike in prices — they now cost 70 percent more than in 2015.
Next is the canton of Zurich, where prices grew by 50 percent more.
For both types of properties, prices in these places are higher than the average national increase of 43 percent for houses and 33 percent for apartments in 18 cantons.
READ ALSO: What property buyers in Switzerland should expect in 2025
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Which brings us to the next question: in which regions can you expect lowest increases?
For both single-family homes and apartments, Ticino is least expensive, property prices having risen there by ‘only’ 15 and 5 percent, respectively.
Next is Geneva, which may come as a surprise, because the cost of properties there is usually among the highest in the country.
However, they have risen by less than in most cantons — 25 and 18 percent respectively.
Valais is next on the list, with a 35-percent and a 25-percent hike, respectively.
Taken out of the study’s context, even these ‘low’ increases are significant, given that salary levels in both Ticino and Valais are lower than in Geneva, Zurich, or Basel.
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Why is there such a price disparity among cantons?
Basically, two factors determine those prices, according to the Wüest Partner study.
One is the availability of jobs — the more employment opportunities there are, the more expensive real estate will be — a similar phenomenon as will rents.
Secondly, supply vs. demand plays a major role as well.
In places with few residential construction projects, where the demand for housing cannot be met — prices will be correspondingly high.
Here too, similarities can be drawn with the situation on the rental market — housing shortage drives up the rents.
