Annual review 2023: Whether buying or renting – house prices are on the rise

In December, advertised prices for condominiums rose by 0.6 per cent. In contrast, asking prices for single-family homes fell by 0.4 per cent. A similar, but weaker, trend can be seen in the annual development: While prices for condominiums rose by 2.6 per cent, those for single-family homes fell by 0.7 per cent. This is the first time in over ten years that the price development of these two forms of property went in opposite directions. This is according to the latest analysis of the Swiss Real Estate Offer Index, which is compiled and published by ImmoScout24 in collaboration with real estate consultancy IAZI.

Condominiums increasingly expensive, price plateau reached for houses
“Sellers of condominiums are hoping that potential buyers will purchase an affordable condominium unit rather than a single-family home, which means that this form of home ownership remains highly sought-after. This is currently driving asking prices even higher,” explains Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group.

In contrast, single-family home prices have apparently reached their peak for the time being. The very high purchase price level, in combination with a noticeable increase in borrowing costs, is leading to a decline in demand. In addition, the very high purchase prices are often accompanied by a significant need for investment, for example, in the area of energy-related refurbishments, which can make the decision to purchase a single-family home even more difficult.

Drastic increase in asking rents
The asking prices for rental apartments also increased in December. At 0.9 per cent, the increase was significantly high. As in the previous year, the increase for 2023 as a whole is a substantial 4.4 per cent, which is well above the expected annual inflation rate in Switzerland (1.4 per cent according to the CPI as at the end of November). “After the level of asking rents in Switzerland moved sideways for many years, there has now been a massive increase of 8.6 per cent in the last two years,” says Martin Waeber, summing up the situation. Depending on the region, there are major differences throughout 2023: Prices in the greater Zurich region (+5.7 per cent), Central Switzerland (+5.4 per cent) and Eastern Switzerland (+4.9 per cent) rose at an above-average rate, while prices in the Lake Geneva region rose by 4.3 per cent, which was slightly below the national average. Rental price growth was somewhat lower in the Central Plateau (+3.0 per cent) and Northwestern Switzerland (+1.9 per cent). By far, the smallest increase was recorded in Ticino (+0.5 per cent).

As of December 31st 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.