SWISS RESIDENTIAL MARKET

Agglomeration Vacancy Net rents purchase prices
price band
CHF/m² p.a.
price band
CHF/m²
Aarau 1.9 % 165-285 4910-10235
Baden-Brugg 2.0 % 180-320 5600-10715
Basel 1.2 % 185-320 5150-11965
Bern 1.0 % 170-320 4860-9960
Biel 2.9 % 155-245 4285-8275
Chur 0.5 % 170-345 4620-9270
Fribourg 2.1 % 170-310 4740-8090
Geneva 0.7 % 275-555 8515-19290
Lausanne 1.1 % 225-435 6000-14145
Lugano 3.0 % 165-370 4750-13550
Lucerne 1.2 % 185-345 6330-13840
Neuchâtel 1.5 % 165-285 4390-8695
Olten-Zofingen 3.8 % 155-250 4060-7785
Schaffhausen 1.3 % 150-260 4290-8285
Solothurn 2.9 % 150-255 3900-7290
St. Gallen 2.4 % 150-265 4615-9450
Thun 0.6 % 175-285 5070-9860
Winterthur 0.5 % 195-345 6665-11850
Zug 0.4 % 230-525 8095-17105
Zurich 0.8 % 200-225 6790-15865

The Covid-19 pandemic has affected our society for more than two years. Health, safety, a stable social environment have taken centre stage – as has a home of one’s own. Working from home has led to a space problem for many households. As a result, there has been an increased desire for more living space and also a desire for increased living quality. The attractive financing environment in particular has steered demand towards the owner-occupied segment. Accordingly, demand for single-family houses and condominiums continued to rise in 2021, boosting prices throughout almost all of Switzerland. Sharp price rises were recorded even in large cities and the surrounding agglomerations, where home ownership is affordable only for a small minority. Another reason for the impressive increases in value in the condominium segment is the stalled development of new supply. Building land is limited, and investors have focused on development of investment properties, which has led to construction of apartment buildings with rental apartments. In addition, the pandemic had led to a delay in many places in the building permit process, which has contributed to the current shortage of supply. This has caused market liquidity to drop substantially over the last year. According to the Federal Statistical Office, as of 1 June 2021, some 10,590 vacant properties were available for sale – a figure that is 15.4 % lower than at the same period in the previous year. The increase in demand had a structural impact, in particular in the rental apartment segment. Larger properties were primarily sought-after, with a clear decrease in interest in 1- and 2.5-room apartments in many locations. Accordingly, vacancies in small apartments have risen. The trend towards home ownership is likely to continue in 2022, which should lead to another increase in purchase prices. Since the Swiss National Bank will not alter its monetary policy fundamentally, a sudden rise in mortgage rates is unlikely. As a result, the financing environment will remain attractive to buyers for the time being.
"The demand for residential property remains extremely high and is not target group-sensitive. There are very long lists of interested parties for many new projects, and enquiries are being received daily. On the supply side, the market does not offer much, partly because approvals are pending for a long time: On the one hand, the processes are delayed because of Corona, on the other hand because of the authorities’ workload."
Andrea Bülow
Marketer Investment Properties, Commercial Properties & Tenant Representation, Team Leader Residential Sales
"Requirements in the high-priced segment have risen. Prospective tenants are looking for apartments that stand out; for example, with attractive layouts, special amenities and high-quality kitchens. The use of sustainable materials, renewable energy sources, e-parking spaces, etc. are also very popular."
Sylvia Mrfka
Senior Marketer, Team Leader Initial Letting of Residential Properties