Broad price increase for residential property and rents in June

Potential home buyers were confronted with higher market prices for both detached houses and condominiums in June. This is not least due to the improved conditions in the property market. However, advertised rents have also risen again.

After the asking prices for single-family homes, which are as sought-after as they are scarce, had settled at a high level since the beginning of the year, there was now a noticeable increase again in June. Specifically, prices for advertised houses rose by 1,2% last month. The increase for condominiums was also 1,0% in June. These are the findings of the Swiss Real Estate Offer Index, which is compiled by ImmoScout24 in collaboration with the property consultancy IAZI.

As can be deduced from these figures, home sellers are once again more confident about the potential proceeds from their properties on the Swiss market. The fact that this is entirely justified is supported by numerous improvements, as Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group, summarises: “The Swiss National Bank’s further reduction in key interest rates on 20 June and the prospect of a further reduction in September will result in lower financing costs for mortgages. This increases both the attractiveness of owning your own four walls and their affordability”. In addition, demand for residential property will continue to be supported by a sustained high level of immigration coupled with low inflation and unemployment, according to Waeber.

Asking rents are also rising, with two exceptions
Last month also brought higher asking prices for the vast majority of tenants looking for accommodation. The asking rents published in advertisements increased by 0,4% on a national average. Regionally, the strongest increases were seen in Ticino (+3,3%) and Central Switzerland (+1,8%), followed by Eastern Switzerland (+1,2%). The increase was lower in the Central Plateau region (+0,9%), while there was hardly any visible change in the Lake Geneva region in June (+0,1%). Meanwhile, asking rents developed in the opposite direction in the Greater Zurich Region (-0,6%) and in Northwestern Switzerland (-0,2%). 

This means that advertised rents have not increased on average across Switzerland since the start of the year, but they have risen by 4,0% compared to June 2023. This dynamic upward trend in advertised rents is likely to continue for the rest of the year due to strong demand, particularly in city centres.

As at 30 June 2024

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. 

Offers to buy detached houses throughout Switzerland (CHF/m2)

Condominiums for sale throughout Switzerland (CHF/m2) 

Rental offers throughout Switzerland (CHF/m2 per year) 

The values may contain rounding differences.