Banks UBS experts do not expect the housing market to ease
Affordable rental apartments remain in short supply. The real estate experts at UBS do not expect the housing market to ease significantly this year - despite a slight increase in construction recently.
26.03.2026, 10:01
SDA
According to a study published on Thursday, around 2,000 additional new rental apartments are expected to be completed in Switzerland in 2026. "However, this remains just a drop in the ocean," say the authors of the study.
According to the UBS economists, the housing market is only likely to ease noticeably in a few regions, for example in the cantons of Aargau, Geneva and St. Gallen. However, in the cantons of Zurich, Zug and Graubünden, which are affected by housing shortages, construction activity is likely to stagnate or even decline.
In contrast, conversions and renovations are experiencing "a real boom", the experts write. Within the last five years, the investment volume of submitted projects has almost doubled.
Many renovated properties are now being offered at high prices in urban centers. This is leading to a surplus of expensive apartments, which is putting pressure on prime rents in major cities. "Away from the top locations and particularly in the case of affordable rental apartments, however, supply remains tight," it says.
UBS expects vacancy rates to fall slightly again this year. As a result, asking rents are expected to rise by 2 percent and prices on the transaction market by 3 percent.
