Study predicts an easing of Swiss housing market

Construction is finally getting underway: a study predicts an easing of the housing market Keystone-SDA

There remains a shortage of flats in Switzerland but according to an analysis by the property consultancy firm Wüest Partner, the situation could soon improve – at least in some regions.

“Housing construction appears to have bottomed out,” according to the study published on Thursday. Specifically, the forecast predicts a net increase of around 45,000 homes in 2026 and around 50,000 in 2027.

By way of comparison: according to data from the Federal Statistical Office (FSO), there were ultimately only 40,000 additional homes in 2024, and according to estimates by Wüest Partner, as few as 39,000 in 2025 – the lowest level since 2009. The study states that the “significant increase” in housing production will at least “somewhat alleviate” the housing shortage across Switzerland by the end of 2027.

Higher prices help

According to Wüest Partner, the foundations for the forthcoming upturn in housing construction were laid several years ago. “In 2020, vacancy rates – which had been rising for years – began to fall rapidly,” the analysis states. At the same time, the market value of residential property rose significantly. “This market environment created incentives for new housing projects and triggered additional development schemes.”

+ Flat-hunting in Switzerland’s cheapest and most expensive municipalities

However, it often takes several years from project to finished home. The reasons cited include the increased complexity of planning and constructing new homes due to additional building regulations, rising construction costs and interest rate trends. These factors have, in the meantime, slowed down individual projects. In the meantime, however, many of the projects developed since 2020 have now gone through the planning and approval phases and are nearing completion.

Regional differences

According to the study, however, the upturn in 2026 will remain sporadic at a regional level. Housing production is likely to exceed the long-term average, particularly in certain cantons in western Switzerland and the Alpine regions.

In 2027, the upturn will then gain significant momentum. A sharp rise in the number of homes is expected in particular in Thurgau, Geneva, Valais and the canton of Neuchâtel. However, large parts of the Mittelland (Swiss plateau) are also likely to benefit, the analysis suggests.

Nevertheless, housing production in around half of the cantons will remain below the long-term average. At the same time, property experts also emphasise that a widespread easing of the housing shortage is not yet in sight and that the situation is likely to remain tight, particularly in the major urban centres.

Furthermore, the building applications currently on file do not, for the time being, suggest any further acceleration in housing production by 2028.

+ How we produce news in English
Translated from German, reviewed by an English Department journalist.