Good news for tenants Demand for Swiss real estate likely to fall in 2026
Rising construction investment meets falling demand: the Swiss real estate market is heading for a phase of consolidation in 2026.
27.10.2025, 10:14
27.10.2025, 11:38
SDA
No time? blue News summarizes for you
- According to an analysis, demand for apartments in Switzerland will decline in 2026.
- At the same time, construction investment is picking up again after years in the doldrums, with a forecast increase of 5.3 percent for 2026.
- While single-family homes and condominiums will become more expensive, rents for offices will fall slightly and the price momentum for residential real estate will weaken overall.
The Swiss real estate market is facing a consolidation phase in 2026. According to a new study, demand for apartments is expected to fall, while construction activity will pick up again after a long lull.
Fewer individuals are currently looking for their own home, according to the "Immo-Monitoring" study published by Wüest Partner on Monday. The reason for this is the lack of supply and high rents. Many are therefore staying longer in their parents' home or in shared flats.
Specifically, around 22,400 new single-person households were created in 2024. In 2021, the figure was 35,500.
The labor market is also cooling. According to the study, the number of people in employment barely increased this year and was at its lowest level since the pandemic. As a result, the "additional demand" for housing is also decreasing, for example from workers who have moved here.
More expensive single-family homes, cheaper offices
The real estate consultancy expects prices to develop moderately in the coming year: asking rents are likely to rise by 0.7 percent, while existing rents will fall by 0.8 percent.
Condominiums and single-family homes will probably continue to rise in price, by 2.8 percent and 3.1 percent respectively. However, the momentum is also weakening there.
Rents for office space are likely to fall slightly in 2026 (-0.6%). However, high-quality, ready-to-occupy space in good locations is still in demand.
Recovery in the construction market
Finally, according to the study, construction investment will increase again after seven years: Wüest Partner is forecasting growth of 5.3% for 2026.
The imminent abolition of the imputed rental value is likely to boost renovations. This is expected in 2028 or 2029. Investments in new buildings are also likely to increase again in 2026, particularly in the area of apartment buildings.
