Falling asking prices for residential property in January

The start of the year brings good news for home-seekers: Both single-family homes and condominiums were advertised at lower prices than the previous month. However, anyone looking for a new rental flat once again had to reckon with more expensive market offers in January.

The analysis of real estate advertisements brings good news for all those who are currently looking to purchase residential property. This is because sellers of condominiums reduced their price expectations by 0,6% in January. The monthly evaluation of single-family homes on offer shows an even greater price reduction of 2,1%. This is shown by the Swiss Real Estate Offer Index, which is compiled by ImmoScout24 in collaboration with the property consultancy IAZI.

The average asking price per square metre for condominiums is currently CHF 8,834. Single-family homes are being offered at CHF 7,591 per square metre of living space. A typical 140 square metre property, therefore, comes onto the market for CHF 1,236,800 (condominium) or CHF 1,062,800 (single-family home). Despite these recent reductions, the longer-term price trend is still slightly upward. Over the past twelve months, asking prices for condominiums have risen by 1,0%, while the increase for single-family homes is 1,4 %.

Further increase in asking rents
Rental flats were advertised at 0,9% higher prices on a national average in January than in December. Significantly more expensive offers were observed in the greater Zurich region in particular (+2,5%), while market rents also rose in the Lake Geneva region (+0,7%), Central Switzerland (+0,7%), Eastern Switzerland (+0,4%) and the Central Plateau (+0,3%). In contrast, however, there are also regions with falling rents, such as Northwestern Switzerland (-0,4%) and Ticino (-1,4%).

“Overall, the Swiss property market continues to be characterised by low and possibly falling interest rates. For potential buyers and those with mortgages that are due to expire soon, this means lower financing costs. Meanwhile, tenants with current contracts can hope for a rent reduction due to a possible adjustment of the reference interest rate on 1 March 2025, depending on their initial situation. However, anyone looking to move into a new rental property and thus a new tenancy must expect price increases in the coming months due to the tight supply situation,” explains Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group.

Date 31 January 2025

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

Purchase offers for condominiums throughout Switzerland (CHF/m2)

Rental offers throughout Switzerland (CHF/m2 per year)

 The values may contain rounding differences.