Residential property prices continue to rise in Switzerland
Buyers of residential property had to dig deeper into their pockets also last year. Average prices continued to rise in almost all regions of German-speaking Switzerland and in Ticino.
However, the pace of growth slowed significantly as a result of repeated interest rate hikes, according to an analysis of residential property prices by the Swiss Real Estate Institute on behalf of the property portal Newhome, which was published on Monday.
Prices for single-family homes climbed by an average of 3.6%, which was significantly higher than the general inflation rate of 2.1%. In contrast, flats did not become much more expensive (0.4%).
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The analysis is not based on prices in the adverts but on the actual sales prices from the Swiss Real Estate Data Pool. This comprises homes financed by Credit Suisse, UBS and Zürcher Kantonalbank and covers around 40% of all transactions in Switzerland. In 2023, 6,631 owner-occupied homes changed hands in the six regions analysed.
Most expensive homes in Central Switzerland
Of the six regions analysed, a detached house in Central Switzerland is the most expensive. On average, CHF1.64 million ($1.9 million) had to be paid for it last year. This is 5.1% more than in 2022. The Zurich region ranked second with an average price of CHF1.54 million (1.3%).
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However, the biggest price increases were in Eastern Switzerland (8.2%) and Ticino (6.7%), ahead of Northwestern Switzerland (3.5%). The sharp increases in Eastern Switzerland and Ticino can be explained by a catch-up effect and the fact that it is still easier to finance, as prices in both regions are lower than elsewhere.
The area consisting of cantons Bern and Solothurn was the only region to see falling prices (-2.1%). Single-family homes were also the cheapest there, with an average selling price of CHF920,000.
Flats in Zurich
The Zurich region has overtaken Central Switzerland at the top of the list for flats. While flat prices in Zurich rose by an average of 1.8% to CHF1.14 million, they fell by 3.6% to CHF1.08 million in Central Switzerland. In the previous year, both regions had been tied at the top.
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All other regions became more expensive with the exception of Bern and Solothurn, where average prices fell by 8.8%. This means that a flat there now costs only CHF620,000. This region has replaced Ticino as the cheapest region (CHF680,000).
The differences between the municipalities are huge: among the five most expensive municipalities for detached houses, the municipality of Erlenbach in canton Zurich leads by a wide margin with an average property price of CHF5.16 million. The average price of a detached house there is CHF1.31 million higher than in the second most expensive municipality of Hünenberg (CHF3.85 million).
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