Condominiums more expensive again, but prices for houses and rents ease

In July, advertised prices for condominiums rose slightly. However, the situation was different for single-family homes, where asking prices fell last month. The situation is also easing for asking rents.

Single-family homes were advertised at significantly lower prices in July than in the previous month. The reduction amounts to 1,1%, while condominiums became 0,6% more expensive in the same period. Prices for houses have fluctuated in various waves in recent months. In most cases, a month of increase was immediately followed by a period of decline. This indicates that sellers are looking for the optimum transaction price. These are the findings of the Swiss Real Estate Offer Index, which is compiled by ImmoScout24 in collaboration with the property consultancy IAZI.

In contrast to condominiums, which remain in high demand, the price level for houses is roughly at the same level as at the end of 2023, following the decline in July. “For many potential buyers, a single-family home is still difficult to afford despite the recent decline,” says Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group, summarising the current market situation. “If they still want to realise their desire to own their own home, purchasing a condominium – despite the higher prices per square metre but with a smaller living space – would often be the only way to achieve this goal”, Waeber continued. Accordingly, demand is shifting towards the apartment market sector in some places, which affects the price of both types of property.

Offered rents: Noticeable relief
In addition to the summer we have been missing so far and the Olympic Games, the past month brought some good news for apartment hunters: Asking rents have fallen in all regions of Switzerland compared to the previous month. Anyone currently looking for a rental flat can expect prices to be 2,2% lower on a national average. Over the twelve-month period, this means an upward trend of plus 0,9%.

Although declines can be seen in all parts of the country, as usual, rental price trends differed from the national trend depending on the region. The decline was greater than the national average in Ticino (-3,7%), Central Switzerland (-3,2%) and the greater Zurich region (-3,2%). In the Lake Geneva region (-2,0%), the decline is in line with the overall average, while more modest reductions can be observed in Eastern Switzerland (-1,6%), the Central Plateau (-0,9%) and Northwestern Switzerland (-0,5%).

Existing tenants can also breathe a sigh of relief. Due to the latest interest rate developments, further across-the-board rent increases are unlikely for the time being. At the same time, however, a reduction can be practically ruled out until at least spring 2025.

As at 31 July 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.