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A region can be scenically attractive, but real estate prices can be a deterrent: Kilchberg on Lake Zurich.
Picture: Keystone
Demand for housing in Switzerland remains high - but prices are not rising at the same rate in all regions. An expert explains which places are booming and also offer attractive living.
Switzerland and its residential areas are a blessing for some and a curse for others. The rule of thumb is: the closer you live to a city, the higher the rents or the prices for residential property.
Nevertheless, there are regions that are booming and really flourishing. But you have to differentiate between prices. A region can be attractive, but have a deterrent effect in terms of price - such as the so-called Pfnüselküste on Lake Zurich.
blue News shows you which regions are booming and where the cheapest and most expensive residential areas in Switzerland are located.
While price increases are moderate in most first-home markets in German-speaking Switzerland, there are regional hotspots with significant imbalances.
In particular, the Limmattal AG/ZH region and now also Einsiedeln SZ stand out due to high imbalances. There is also a worrying trend in the Pfannenstiel region in the Zurich Oberland: here, purchase prices are rising faster than rents and incomes, which increases the risk of price bubbles in the long term.
Striking: In the Graubünden region, real estate prices have risen sharply in the last five years, according to the UBS real estate price index.
Image: UBS
Despite these exceptions, the general trend in German-speaking Switzerland remains comparatively stable - the ratio between purchase prices and rents has risen at a below-average rate across the board.
In western Switzerland, imbalances can be observed, particularly in the canton of Vaud. Since the third quarter of 2019, real estate prices there have decoupled from rents and incomes to an above-average extent.
By contrast, the situation has eased in the city of Geneva, where price trends have recently been below the national average.
The tourist regions in Graubünden are a special case, where a veritable boom in second homes has led to extreme price increases in some cases.
The mountain regions of Central Switzerland also show an increased imbalance - here, real estate prices could reach a critical threshold in the long term.
In the city of Zurich, new residential buildings were mainly approved in 2023 and 2024. The areas are limited to two hotspots:
District 11 with Oerlikon is experiencing a construction boom and also District 3 (Wiedikon). In 2023, 7783 buildings were approved - an all-time high. The overview is available on the City of Zurich website.
The most expensive districts in terms of average net rent per square meter for a 3-room apartment are District 1, Altstadt (34.7 Swiss francs per square meter) and District 3, Wiedikon (32.1). The prices refer to the year 2024.
District 12 (Schwamendingen) is the cheapest at CHF 21.8 per square meter.
Looking at Switzerland as a whole, there is nothing surprising. The city of Zurich, Geneva, Basel and Bern remain the most expensive residential regions in Switzerland. This is shown by a glance at the federal government's residential real estate price index.
Rolf Wirnsberger, Broker Owner at real estate agent Remax, also confirms this to blue News: "Attractive residential regions in Switzerland are those that are populous, have a strong economy and offer jobs." If you take a closer look, you realize that the cities have their own residential dynamic. In short: "People are drawn to places where the economy is booming," explains Wirnsberger.
Space in cities is limited and prices are continuing to rise. Wirnsberger says: "There are certainly people who are forced to move to smaller towns where they can find affordable apartments." What can be observed, he says, is that people prefer to go for the nickel and dime. This means: "A nice apartment, close to work and as cheap as possible," says Wirnsberger.
As a result, people in cities are finding it increasingly difficult. "The cities are built up, so there are almost no more opportunities to build new ones," says Wirnsberger. Political pressure is also noticeable. Anyone who wants to build or extend a building encounters resistance or long, bureaucratic waiting times.
"If you want to build, there are a lot of regulations that also cost money and take a lot of waiting time. We have noticed that the volume of construction in cities has declined." However, the lack of space for building land is also a factor.
But there are also regions that are affordable. Wirnsberger says: "Certain regions in Aargau are still attractive at the moment. Baden has been booming recently."
Baden has been booming recently.
Picture: Keystone
Baden is close to Zurich "and you have everything you need - infrastructure and affordable housing." However, this could soon change. Housing prices are rising in Baden. "We are seeing residential areas being pushed outwards more and more."
Mountain regions have also become very attractive and expensive during and after the coronavirus pandemic. As a result, living space is also scarce there. This is only likely to change partially in the future - and housing is likely to remain expensive.
