Swiss housing prices surged in 2025

Price increase for residential property continues in 2025 Keystone-SDA

Residential property prices in Switzerland rose significantly last year, especially for single-family homes.

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Across Switzerland, prices for single-family homes rose by an average of 6.5% and for condominiums by 5.9% in 2025, as mortgage broker Moneypark and Zurich-based startup Pricehubble, which specialises in real estate data, reported on Tuesday. Price momentum in both segments increased noticeably in the fourth quarter of 2025 in particular.

Prices for single-family homes rose more strongly in German-speaking Switzerland (+7.0%) than in French-speaking Switzerland (+5.0%) in 2025. In the second half of the year, prices rose by 3.8% in German-speaking Switzerland and by 1.4% in French-speaking Switzerland.

Prices for flats developed more in line in 2025. These rose by 6% year-on-year in French-speaking Switzerland and 5.9% in German-speaking Switzerland. For the second half of the year, the increase amounts to 3.4% and 3.6% respectively.

The buyer’s market also picked up noticeably in the second half of 2025. At 47%, the share of new financing reached its highest level since the sharp rise in interest rates four years ago. One important reason for this is that the SNB lowered the key interest rate in several steps from 1.75% to zero per cent from the beginning of 2024.

Preference for medium-term mortgages

When financing their own homes, buyers increasingly favoured medium-term rather than long-term mortgages. The proportion of Saron mortgages also increased. (A Saron mortgage is a type of Swiss, variable-rate home financing where the interest rate is based on the Swiss Average Rate Overnight.)

Many of these mortgage borrowers speculated on falling mortgage rates and waited for the right opportunity to switch to a fixed-rate mortgage, writes Moneypark.

New home buyers in particular were in demand for money market mortgages in the second half of the year. Almost one in three new purchases (29%) were financed with a Saron mortgage. The figure for refinancing was only 14%. High-income buyers in particular chose Saron mortgages.

Translated from German by AI/jdp

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