The CSL Real Estate Market Report provides facts, figures and estimates on the investment, residential and office market in Switzerland and in particular in the Zurich economic region. The CSL Real Estate Market Report is based on a broad range of rents and prices, data from statistical offices and assessments by experienced market participants, economic promoters and experts. In addition, findings from expert interviews with key players in the sector are incorporated.
 
And last but not least, it also reflects the experience our employees gain in their daily work.

SWISS RESIDENTIAL MARKET 2020

Agglomeration Vacancy Net rents purchase prices
price band
CHF/m² p.a.
price band
CHF/m²
Aarau 2.7 % 165  –  280 4 600  –  8 800
Baden-Brugg 2.0 % 170  –  310 5 000  –  9 500
Basel 1.2 % 180  –  320 4 500  –  10 600
Bern 1.3 % 170  –  315 4 300 –  9 300
Biel 2.8 % 155  –  250 3 700  –  7 900
Chur 1.5 % 160  –  300 4 200  –  9 300
Fribourg 1.9 % 160  –  305 4 300  –  7 600
Geneva 0.6 % 240 – 510 7 000  –  16 600
Lausanne 0.7 % 200 –  420 5 500  –  12 200
Lugano 2.3 % 165  –  340 4 400  – 12 500
Lucerne 1.4 % 180  –  340 5 700  – 11 400
Neuchâtel 1.8 % 155  –  300 4 400  –  8 200
Olten-Zofingen 4.0 % 150  –  250 3 700  –  7 400
Schaffhausen 2.3 % 145  –  250 4 100  –  8 000
Solothurn 3.2 % 145  –  255 3 700  –  6 700
St.Gallen 2.3 % 145  –  275 3 800–  8 500
Thun 0.9 % 180  –  275 4 700  –  9 500
Winterthur 0.8 % 185  –  335 5 500  –  9 900
Zug 0.5 % 230  –  430 7 100 – 15 100
Zurich 0.9 % 195  –  450 5 800  – 13 100

SWISS RESIDENTIAL MARKET

The alarming growth in vacancy rates in many market areas in recent years slowed in 2019, as did construction activity. The nationwide vacancy rate rose only marginally from 1.62% to 1.66%. Nevertheless, with markets in many regions falling out of balance, there is no ‘all-clear’ on the horizon. The highest vacancy rate was found in the Solothurn agglomeration with more than 3%, followed by Biel and Aarau with vacancy rates just below the 3% mark. In contrast, the extremely strained residential markets of the Zug, Geneva, Lausanne and Zurich agglomerations showed vacancy rates below 1%. These figures were also mirrored by the rental levels in the individual regions, although the changes were relatively small. This is attributable, inter alia, to opposing trends in the central submarkets and less attractive locations within the region, which balance each other out. The quality of the micro-location, particularly public transport links, remains the most important factor for tenants when deciding on their preferred location. In view of the low interest rates, demand for owner-occupier property remains high, with sale prices rising once again in 2019. Due to restrictive mortgage lending and high prices, however, buying has become unaffordable for large sections of the population. Properties with an attractive price-performance ratio and good transport links in particular are extremely rare. Sale prices are expected to rise further nationwide in 2020 while, in the rental apartment segment, the gap between strengthening and weakening markets will widen further. In many locations, the increasing supply will severely impact rental levels. The reference interest rate is also expected to be cut this year, which will lower investors’ rental income nationwide.
"The younger target audience in particular is increasingly attentive to the internal and external appearance of their home and shows a high willingness to move. Owners must therefore invest in their properties just a few years after initial letting to ensure that they remain competitive."
Stefanie Bigler
Head of Residential Property Marketing
"The financing of property is a challenge for a growing number of potential buyers. There is great price sensitivity here. At extremely sought-after locations, the buyers are still willing to pay high prices."
Giuliana De Rinaldis
Head of Marketing

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