Risks in Swiss property market ease for first time in three years

Risks in the property market are falling for the first time in three years Keystone-SDA

Risks in the Swiss property market eased slightly in the second quarter of 2026, marking the first improvement in risk conditions in three years.

Moneypark’s Real Estate Risk Index (RERI) fell from 3.7 to 3.5 points in the second quarter, moving back into the middle of the five-point risk scale.

Improving economic sentiment and persistently low interest rates were the main factors behind the easing in risk, Moneypark said on Wednesday. At the same time, the labour market remains a source of concern. The average unemployment rate rose to 3.1% from 3.0% in the previous quarter and 2.8% a year earlier, which could put pressure on some households’ ability to afford housing and weigh on demand for owner-occupied homes.

Price inflation eases slightly

According to the study, house prices continued to rise much faster than inflation, although the gap has narrowed. In the second quarter, house price growth was 3.8 percentage points above inflation.

The gap was 4.2 percentage points in the previous quarter and 5.0 percentage points a year earlier. However, Moneypark said there is still no sign of a broad-based price correction, citing limited supply and buyers’ continued willingness to pay high prices.

Moneypark expects the risk index to remain broadly stable or edge slightly lower over the coming quarters. However, a rapid improvement is unlikely, given elevated unemployment, continued strong growth in property prices and marked regional differences.

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Translated from German, reviewed by an English Department journalist.