Real estate Market prices for apartment buildings continue to rise

Market prices for investment properties varied in the second quarter of 2024. While prices for apartment buildings continued to rise, prices for office properties stagnated.

Compared to the second quarter of 2023, prices for apartment buildings rose by 4.0%, as the Zurich-based consulting and research company Fahrländer Partner Raumentwicklung (FPRE) reported on Friday. Compared to the previous quarter, prices rose by 1.3%. The price recovery is thus continuing, although the price is still 10.0% below the peak of the first quarter of 2022.

Office property prices, on the other hand, largely stagnated in the second quarter of 2024. The minimal decline of 0.2% compared to the previous quarter shows a stable price trend. Compared to the same quarter of the previous year, however, prices rose by 4.0%.

Regional differences for office properties

Looking at the individual regions, the price trend for multi-family houses was up in most regions compared to the previous quarter, most clearly in Eastern Switzerland (+2.0%), followed by Basel and the Alpine region (+1.7% each) and Jura (+1.5%). Only in southern Switzerland did prices stagnate (-0.3%).

However, the market for office properties developed differently. While prices rose sharply in the Lake Geneva (+4.3%), Basel (+2.6%) and Central Plateau (+1.9%) regions, there were declines in Southern Switzerland (-4.9%), Zurich (-2.6%) and Eastern Switzerland (-0.5%).