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In 2024, Switzerland’s residential population grew by 1.1 percent. On 31 December 2024, with an increase of over 86,000 people, the population reached 9,048,900 permanent residents — surpassing the 9-million mark for the first time.
Last measured in September 2025, the Federal Statistical Office currently estimates the residential population at 9,116,344 people. By the end of the year, it is therefore expected to increase by around 80,000 people compared to the previous year. This means population growth has slightly slowed compared to 2024.
In 2024, 2 percent more single-family homes were offered for sale — but at the same time, 2 percent fewer condominiums. The number of building permits increased. The six interest rate cuts by the Swiss National Bank in 2024 and 2025 — down to 0 percent in the last five months — combined with continued population growth, are contributing to strong demand for residential property in Switzerland.
In the 3rd quarter of 2025, single-family homes became 1.9 percent more expensive compared to the 2nd quarter. Condominiums, however, weakened slightly, with an increase of only 0.2 percent. Over a 12-month period, the overall residential property price index rose by nearly 5.2 percent (from 118.2 to 124.3 points, based on 100 points in 2019).
The Swiss Builders’ Association expects an overall increase in construction activity of 0.6 percent for 2025, with residential construction growing disproportionately. The association forecasts 44,000 new homes this year and anticipates a further 1.9 percent increase in residential construction for 2026. The number of advertised condominiums and single-family homes also rose in 2025.
The longer the forecast horizon, the harder predictions become. However, demand is likely to remain high for five reasons:
Inflation in Switzerland is currently exceptionally low. In 2025 it temporarily fell below zero and currently stands at around 0.1 percent. Mortgage interest rates are also low by international standards. But international risks persist and can weigh on the real estate market: geopolitical tensions due to the war in Ukraine and other crises, unresolved relations with the EU (with a vote on the agreement package expected only in 2027), and the confusion around US customs policy, which could weaken Switzerland’s export-focused economy, creating an investment backlog and cooling global demand.
Uncertainty about possible escalations in Ukraine, the Middle East, and parts of Asia further complicates clear forecasts.
The booming stock market (the Swiss Market Index rose around 8 percent from 30 Nov 2024 to 30 Nov 2025), which some experts view as driven by an AI bubble, also poses uncertainties for 2026. A crash could negatively affect demand for residential property. Overall, however, net immigration continues to support demand and is likely to prevent a significant downward price correction next year.
Demand for residential property continues to clearly exceed supply. Buyers are still willing to pay more for condominiums and single-family homes — in Q3 2025, single-family homes rose in price by 1.9 percent compared to the previous quarter. For condominiums, growth slowed: in Q3 2025 the increase was 0.2 percent, after 2.7 percent from Q1 to Q2. Over the past 20 years, property prices have more than doubled. Apart from a longer stagnation period between 2008 and 2011, prices have risen almost continuously.
Given this situation, waiting to buy is rarely the right strategy. However, buyers need sufficient equity and income to afford their dream home. Current interest rate developments are favourable for buyers. But lenders calculate affordability using cost assumptions far above actual interest rates. As a result, for many — especially younger people without inheritance or high income — buying property remains challenging or unrealistic.
Medium- to long-term, the market could ease. Supply may increase because the share of working-age residents is declining and the largest population cohort (born 1964) will retire in 2029. Experts expect baby boomers to sell or pass on more than 400,000 properties between 2030 and 2045. This points to falling prices overall — more strongly in municipalities with many older residents, and more moderately in cities with more families and younger people. But for medium- and long-term forecasts, the quote attributed to Karl Valentin, Mark Twain, or Winston Churchill should be remembered: “Predictions are difficult, especially when they concern the future.”
If you are looking for a property, we recommend re-evaluating your search criteria and considering locations further from major centres, less prominent areas, or properties with less living space than ideally desired.
Homeowners wishing to sell still need patience. According to the Online Home Market Analysis — a study by the Swiss Homeowners’ Association in cooperation with the Swiss Real Estate Institute — significantly more condominiums were listed for sale: in 2024 nearly 100,000 units were offered, compared with 83,800 in 2023.
This resulted in a notable increase in listing duration: condominiums were listed for around 92 days on average — an increase of 17 days compared to 2023. Single-family homes remained online for about 79 days in 2025.
In this situation, you have three options:
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For an agent who is not emotionally attached to the property, price negotiations are easier than for you as the owner. Of course, you can also sell your house or apartment yourself. Our guide “Selling a House in 10 Steps with Smart Houzy Tools” takes you safely through the entire process.
But selling a home involves a lot of work — especially if you are not a real estate professional. And an agent can more easily negotiate price reductions if buyers try to push the price down. This is likely to happen more often in the coming months, as more buyers can no longer or are no longer willing to pay any price.
A small example:
If the agent can sell your home for 1.25 million instead of 1.2 million, the agent’s commission of 25,000 to 37,500 francs has more than paid for itself.
