The Swiss voice in the world since 1935

Risk of a real-estate bubble in Switzerland grew in first quarter

The risk of a property bubble increased in the first quarter
The UBS Swiss Real Estate Bubble Index has risen to 0.29 points, compared with 0.25 points previously, indicating that the risk of a property bubble is considered "moderate", said UBS. Keystone-SDA

The risk of a bubble in the Swiss property market increased slightly in the first three months of the year compared with the previous quarter, according to UBS. However, this risk is more moderate for owner-occupied housing.

+ Get the most important news from Switzerland in your inbox

The UBS Swiss Real Estate Bubble Index has risen to 0.29 points, compared with 0.25 points previously, indicating that the risk of a property bubble is considered “moderate”, said the major bank in a report published on Thursday.

A correction in property prices would therefore be unlikely, said the authors, who point to moderate mortgage demand and a construction sector that is still slowing.

More
Buying a house in Switzerland is getting more expensive, +4% in one year

More

Swiss house prices rise 4% in a year

This content was published on The cost of buying a home in Switzerland rose by 4.1% year-on-year in the last quarter and by 0.7% compared to the previous three months.

Read more: Swiss house prices rise 4% in a year

Prices of owner-occupied homes rose by 1.5% compared with the previous quarter. Year-on-year, they rose by 3.2% in nominal terms, or 2.8% in real terms. Rental property prices rose by 2.2% and 3.2%, respectively, year-on-year.

UBS predicts that the Swiss National Bank’s (SNB) cut in key interest rates in March should slow this rise over the coming quarters. Also, “uncertainty about employment and income is likely to have a negative effect on demand for owner-occupied homes”, prices for which are expected to rise by between 3% and 4% this year.

Translated from French with DeepL/gw

How we work

We select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate them into English. A journalist then briefly reviews the translation for clarity and accuracy before publication. Providing you with automatically translated news gives us the time to write more in-depth articles. The news stories we select have been written and carefully fact-checked by an external editorial team from news agencies such as Bloomberg or Keystone.

Did you find this explanation helpful? Please fill out the short survey below to help us understand your needs.

External Content
Don’t miss your chance to make a difference! Take our survey and share your thoughts.
A smartphone displays the SWIplus app with news for Swiss citizens abroad. Next to it, a red banner with the text: ‘Stay connected with Switzerland’ and a call to download the app.

Popular Stories

Most Discussed

News

Nestlé puts an end to the Nutri-Score for products sold in Switzerland

More

Nestlé scraps Nutri-Score food label in Switzerland

This content was published on Nestlé plans to phase out its Nutri-Score nutrition labelling system on products sold in Switzerland. The food giant says it is almost the last company in the country to use it.

Read more: Nestlé scraps Nutri-Score food label in Switzerland
Fewer coaches stop in Lucerne city centre due to charges

More

Lucerne coach tax puts brakes on tourist influx

This content was published on The number of tourist coaches stopping at Schwanenplatz in the centre of Lucerne was down by two-thirds in April, compared to the same month last year.

Read more: Lucerne coach tax puts brakes on tourist influx

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here . Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR