Real estate Prices for investment properties continue to rise in the third quarter
Real estate prices in Switzerland continue to rise. Transaction prices for apartment buildings and office properties rose in the third quarter of 2024 compared to both the previous quarter and the same quarter of the previous year.
01.11.2024, 09:37
SDA
According to the analysis published on Friday by Fahrländer Partner AG (FPRE), prices for apartment buildings across the country rose by 2.7% compared to the previous quarter and by 7.7% compared to the same quarter of the previous year. However, these prices are still 7.5% below the peak at the beginning of 2022.
Prices for multi-family homes rose in all eight FPRE regions in the third quarter, with the strongest increases in the Alpine region (+5.3%), Eastern Switzerland (+3.8%), Jura and Southern Switzerland (+3.7% each).
According to Stefan Fahrländer, Partner at FPRE, this price trend is based on falling yield expectations and strong demand with continued low construction activity and falling vacancy rates. "The general conditions suggest that the price increase for apartment buildings will continue," says Fahrländer.
Transaction prices for office properties rose nationwide in the third quarter by 1.3% compared to the previous quarter and by 3.0% compared to the same quarter of the previous year. However, there were regional differences: While prices rose in the Lake Geneva (+5.6%), Eastern Switzerland (+4.8%) and Central Switzerland (+2.0%) regions, Basel (-1.3%) as well as Zurich and Southern Switzerland (-0.3% each) recorded slight declines.
