Lull in residential property prices, but rents pick up again in September

Since the spring, the prices of residential properties advertised for sale have fallen off noticeably. Prices for single-family homes (-0.1 per cent) and condominiums (-0.2 per cent) both fell minimally in September. For houses, the longer-term trend over twelve months also slipped into negative territory (-0.4 per cent). In the case of condominiums, on the other hand, offer prices rose by 2.1 per cent within a year. This is shown by the Swiss Real Estate Offer Index, which is compiled and published by the SMG Swiss Marketplace Group in cooperation with the real estate consultancy IAZI.

Single-family homes: No higher tender prices within a year
Should home seekers now wait in the hope of further price reductions? Overall, the supply is still scarce. An important aspect, but one that often receives little attention, is the choice of property type. Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group, explains: “The availability of single-family homes is significantly lower than that of condominiums. Only about a third of the residential properties advertised are single-family homes.” This means that, from the point of view of market liquidity, the dream of owning a home is more likely to be fulfilled by purchasing a condominium despite the lower average price level of detached houses. “If you limit the living space somewhat, you can also significantly improve affordability,” Waeber continued.

Rents rise sharply in September
In the case of rents, the slight reduction from the previous month has already been more than made up for: Anyone currently looking for a rental flat must expect prices to be 1.0 per cent higher. The upward trend is even more pronounced in the twelve-month period at +3.6 per cent. 

Depending on the region, the rental price development in September deviates noticeably from the national trend. Values rose strongly in central Switzerland (+3.4 per cent) and in the greater Zurich area (+2.9 per cent). In Central Switzerland (+0.5 per cent), the increase is slightly below average, while in the Lake Geneva region, there is no change (0.0 per cent). In contrast, declines can be observed in Eastern Switzerland (-0.2 per cent), Northwestern Switzerland (-0.8 per cent) and Ticino (-1.1 per cent). Given the growing demand, the increased rental reference rate and the limited supply of flats, the probability of rising rents is also high in the coming months.

As of 30 September 2023

The Swiss Real Estate Offer Index is published on the ImmoScout24 and IAZI AG websites. 

www.immoscout24.ch/immobilienindex
www.iazi.ch/angebotsindizes

Detailed information and statistics about the overall Swiss trend and those in the various regions are available in the Download section.

Rental offers throughout Switzerland (CHF/m2 per year)

Sales offers for detached homes throughout Switzerland (CHF/m2)

Sales offers for freehold flats throughout Switzerland (CHF/m2)

The values may contain rounding differences.