In 2024, 2 percent more single-family homes were offered for sale, while the number of condominiums listed dropped by 2 percent. The number of building permits increased as well. However, the increased construction activity is unlikely to have an effect before the end of the year or early 2026. Because demand for residential property continues to exceed supply, prices continue to rise. The five interest rate cuts by the Swiss National Bank last year and this year, along with a steadily growing population in Switzerland, are also contributing to the high demand. In 2024, the population grew by over 86,000 people. For 2025, a slightly lower growth of around 81,000 people is expected.
Single-family homes in the mid-price segment increased in price by 4.7 percent in Q1 2025 compared to Q1 2024, while condominiums in this segment rose by 4.4 percent. One indicator of the strong demand is the number of search subscriptions for condominiums and single-family homes, which increased by 20 and 18 percent, respectively, in Q1 2025. The lower construction activity last year is reflected in the decline in the number of listed properties for sale.
The longer the forecast period, the harder it is to predict. However, demand is expected to remain high for five reasons:
Inflation is currently very low, around zero percent, and mortgage interest rates in Switzerland are low compared internationally. However, there are international risks that could weigh on the real estate market. Geopolitical uncertainties due to the Ukraine war and other global crises are significant, and current political developments in the US bring much uncertainty to the markets. Announced or implemented tariffs threaten to weaken Switzerland’s export-driven economy and reduce global demand for domestic goods.
Uncertainties about potential escalations in Ukraine, the Middle East, and parts of Asia make clear forecasts difficult. However, net immigration supports demand for homeownership and prevents a larger downward price correction.
Demand for homeownership still clearly exceeds supply. This means buyers are willing to pay more for condominiums and single-family homes: in Q1 2025 compared to the previous quarter, prices rose by 1.6 percent for single-family homes and 1.3 percent for condominiums. Over the last 20 years, prices for homeownership have more than doubled. Except for a longer phase between 2008 and 2011 when prices stagnated, prices have practically risen continuously every year.
Given this situation, waiting to buy homeownership is rarely the right strategy. However, sufficient equity and income are needed to purchase a dream flat or house. Current interest rate developments work in buyers’ favour. But because mortgage lenders calculate affordability costs far beyond interest alone, it remains challenging—often unrealistic—for many, especially younger people without inheritance or high income, to acquire homeownership.
Only in the medium to long term might the real estate market ease. Supply could rise because the share of working residents is decreasing, and in 2029 the largest birth cohort of 1964 will retire. Experts expect that between 2030 and 2045, baby boomers will inherit or sell more than 400,000 properties. Overall, this suggests falling real estate prices—more strongly in municipalities with above-average older populations, and more moderately in cities with more families and young people. However, medium- and long-term forecasts should remember the quote often attributed to Karl Valentin, Mark Twain, or Winston Churchill: “Forecasts are difficult, especially about the future.”
If you are searching for a property, we recommend questioning your search criteria and considering homeownership farther from large centres, in less prominent locations, or with less living space than your maximum wish.
Homeowners who want to sell currently may need a bit more patience. The latest edition of the Online Home Market Analysis (OHMA) from 2024, which examines the average listing duration for single-family homes and condominiums, shows that it now takes longer than before to sell these properties — they were offered for an average of 76 days in 2024. In this situation, you have three options:
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For a realtor who is not emotionally attached to the house or flat, price negotiations are easier than for you as the owner. Of course, you can sell your house or flat yourself. In our guide “Selling a house in 10 steps with smart Houzy tools,” we lead you safely through the entire process.
However, selling a house involves a lot of work—especially if you’re not a real estate professional. Also, it’s easier for a realtor to negotiate the price if buyers try to push it down. This will likely happen more often in the coming months as more buyers are unable or unwilling to pay every price.
A small example: If the realtor can sell your house or flat for CHF 1.25 million instead of CHF 1.2 million, the commission of CHF 25,000 to 37,500 has already more than paid for itself.
