Residential property prices rise, rents fall

07.11.2024

Both single-family homes and condominiums were being advertised at higher prices in October. In contrast, there was an easing in asking rents.

The asking prices for residential property offered for sale increased last month. Condominium prices rose by 1,0% in October, while single-family homes were advertised at 0,4% higher values. Over the last twelve months, price expectations for condominiums have risen by 3,2%, while those for single-family homes have risen by 2,4%. This is according to the Swiss Real Estate Offer Index, which is calculated by the SMG Swiss Marketplace Group in collaboration with the property consultancy IAZI.

Those who can afford home ownership will fare more favourably again
“The home ownership market is being boosted by improved conditions: mortgage financing costs have fallen noticeably, and there is a good chance that this trend will continue in the near future,” says Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group. The fact that housing costs in a home can be lower again is also documented by the following example: a condominium with a typical living space of 100 square meters has a market price of just under CHF 900,000 due to the average price per square meter of CHF 8,944 (index level as of October 31 2024). If this property is financed with a maximum possible loan-to-value ratio of 80% (borrowed capital of CHF 720,000), this results in monthly expenses of around CHF 2,200. Compared to a similar rental apartment, these costs often no longer represent an additional burden. There are also other advantages to owning a home, such as freedom of design or independence from rent increases.

“Although the prices for residential property are at a very high level, buying your own home can reduce housing costs. In addition, the signs are good that the improved conditions will lead to an increase in the construction of condominiums in the near future, thereby increasing the supply,” Waeber continued. “However, the conditions for buying single-family homes are noticeably more difficult due to the price level and the limited availability,” Waeber concluded.

In addition to the leaves on the trees, rental prices are also falling
October brings at least a temporary relief in rental prices in all regions. The values for advertised apartments in Switzerland have fallen by 2,8%. Over a year, there is practically no change, with a decrease of 0,2%. Depending on the region, the trend in October deviates from the national average: while the reductions in the Greater Zurich region (-6,8%), in Central Switzerland (-5,5%), in Ticino (-3,1%) and in Eastern Switzerland (-1,2%) are significant, there is little movement in Northwestern Switzerland (-0,9%), in the Espace Mittelland (-0,6%) and in the Lake Geneva region (-0,1%). The next few months will show to what extent these noticeable shifts merely represented a short-term fluctuation.

As at 31 October 2024

Purchase offers for single-family houses throughout Switzerland (CHF/m2)

  01.10.2024 31.10.2024 Change in %
Month 7572.3 7604.5 +32.2 +0.4%
  31.10.2023 31.10.2024 Change in %
Year 7425.5 7604.5 +179.0 +2.4%

 Purchase offers for condominiums throughout Switzerland (CHF/m2)

  01.10.2024 31.10.2024 Change in %
Month 8859.8 8944.2 +84.4 +1.0%
  31.10.2023 31.10.2024 Change in %
Year 8663.2 8944.2 +281.0 +3.2%

 Rental offers throughout Switzerland (CHF/m2 per year)

  01.10.2024 31.10.2024 Change in %
Month 282.7 274.7 -8.0 -2.8%
  31.10.2023 31.10.2024 Change in %
Year 275.3 274.7 -0.6 -0.2%

The values may contain rounding differences.

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Sebastian Sinemus
Senior Communications Manager Real Estate & Media Spokesperson

[email protected]
+41 79 819 21 50

Marta Andreoni

Head of Design for Automotive

Introduce yourself and your role at SMG

I’m Marta Andreoni, Head of Design at SMG Automotive. I lead the design and UX writing team shaping AutoScout24 user experience. 

In my role, I wear many hats. My main focus is ensuring we stay true to our vision “simplifying people’s lives and connecting humans through innovative digital platforms” and our brand promise, “make it happen”. I challenge my team to think user-first, push for innovation, ease of use for our customers and make forward-thinking decisions, even within business and technological constraints.

 A big part of my role is supporting each designer’s growth, motivation, and career development. Through one-on-one coaching, mentoring, group work, and projects, I help my colleagues set and achieve their goals while fostering new learning opportunities.

What helps you feel empowered and confident in your role?

If I had to mention one thing I would say “being proactive” has been key to feeling more empowered. I enjoy solving problems, so when issues or opportunities arise, be it in the product, market or the team, I get curious and I proactively investigate the reasons and try to bring inputs to be discussed with others, this makes me feel I can be part of the process or solution and my point of view is going to be taken seriously. My optimism also plays a role, giving me confidence that even the most complex challenges can be solved. 

Besides, having trust from other managers and colleagues makes me feel in a safe environment where I can take ownership on topics I’m passionate about. 

What’s one thing SMG does well in fostering an inclusive workplace? What more can be done to amplify and support different perspectives in the workplace?

In my experience, we strive for balancing top-down and bottom-up inputs, ensuring employees can influence product directions, processes, and culture. People are approachable, and our strong feedback culture helps voices be heard. Across SMG, initiatives like regular People & Culture Surveys, topic guilds, and events in our locations across the world foster open exchange and mutual learning.

That said, I’ve noticed that quieter voices sometimes get less space, or interacting with top management can feel intimidating, especially when giving critical feedback. To make participation more inclusive, we could apply more facilitation and group work techniques like structured turn-taking, written input, and smaller group discussions – ensuring everyone, regardless of confidence level, seniority or personality, feels comfortable contributing. 

Design is often about seeing the world differently. How do unique perspectives contribute to more innovative, inclusive, or impactful design?

Design is about understanding diverse user personas and perspectives to create solutions that truly meet their needs or create new opportunities. I believe in the power of collaboration to shape user experiences – bringing together different disciplines, backgrounds, and lived experiences helps challenge assumptions, uncover blind spots, and drive more inclusive, innovative, and impactful solutions.

Looking back on your career, what’s one lesson or piece of advice you wish you had known earlier as a leader in design?

There are three things no one really prepares you for as a design leader: dealing with constant change, facing failure and handling emotions at work. These topics aren’t talked about much until you face them. I was lucky to learn from others’ experiences, but much of it came through my own.

One thing I wish I had understood earlier is the power of emotional intelligence, my job is no longer about the content and the design, it is about people. Self-awareness, not just of your own emotions, but also how others feel and react, can be the difference between conflict and harmony, frustration and clarity. The more I grow as a leader and designer, the more I realise that design isn’t just about doing the design job, delivering solutions on the market: it’s about navigating people, their emotions, and making change more acceptable and transforming issues into opportunities, both within the organisation and through great products.

 

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