Real estate Residential property prices continue to rise in the third quarter
Prices for residential property in Switzerland continued to rise in the third quarter. And this is unlikely to change. However, the trend varies from region to region.
11.10.2024, 12:01
SDA
Specifically, prices for single-family homes rose by 0.9 percent compared to the second quarter, as reported by Zurich-based consultancy firm Fahrländer Partner Raumentwicklung (FPRE) on Friday. The increase in the lower and middle segments was 0.8 percent, and 0.9 percent in the high-end segment.
In the mid-price segment, the Lake Geneva (+2.2%) and Zurich (+1.6%) regions recorded the strongest increases. Houses have also become more expensive in the Alpine region (+1.4%), Basel (+0.6%) and Eastern Switzerland (+0.4%). They fell in the Jura (-1.2%), southern Switzerland (-1.4%) and the Central Plateau (-0.4%).
Compared to the same quarter of the previous year, house prices rose by 1.7% across Switzerland, with the strongest increase in the Alpine region (+5.4%). They fell the most in southern Switzerland (-4.7%). Since 2020, the average annual price increase has been 4.7%.
Apartment prices also on the rise
Condominiums in the middle segment also became more expensive compared to the previous quarter (+0.6%) and the same quarter of the previous year (+1.8%). The regional differences are also striking here: the increase was most pronounced in southern Switzerland (+3.5%), Lake Geneva (+1.4%) and the Jura (+1.4%), while it declined in eastern Switzerland (-0.8%).
Due to the high demand, the fact that financing costs are now falling again and the low level of construction activity, the consultancy expects residential property prices to continue to rise. Particularly in areas close to the city center, where demand is very high, reserves are low and planning processes are very lengthy, the shortage is becoming more pronounced not only in terms of rents but also prices.
The "SWX IAZI Private Real Estate Price Index" published the previous evening came to a similar conclusion. According to this survey, the actual transaction prices paid on the market for residential property rose by 0.8% in the third quarter and by 3.8% year-on-year.
