According to the bank’s study, published on Monday, property buyers currently face higher financial burdens than tenants of a similar property. Annual costs for a four-and-a-half-room owner-occupied flat with 110 square metres of living space were some CHF32,500 ($36,238) in the first quarter of 2024, while the annual rent for such a flat was CHF30,500 – a property mark-up of 7%.
In the summer of 2023, this surcharge was 16%. According to current forecasts, a person who took out a long-term mortgage at that time would have to bear additional costs totalling almost CHF50,000 by 2033.
But thanks to the fall in mortgage interest rates, the property premium is now significantly lower than in summer 2023. And by the beginning of 2025, it should fall by 3%, UBS says.
The main drivers of this trend are the two key interest rate cuts still expected from the Swiss National Bank (SNB).
The fall in the property premium is widespread in Swiss regions. In cantons Bern, Solothurn, Aargau, Schaffhausen and Thurgau, it is already below 5% in many places. In some parts of the cantons of Vaud, Fribourg and Valais, buying a home is already cheaper than renting. On the other hand, mountain regions have the highest property premium.
Adapted from French by DeepL/dos
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles.
If you want to know more about how we work, have a look here, and if you have feedback on this news story please write to english@swissinfo.ch.
External Content
Your subscription could not be saved. Please try again.
Almost finished… We need to confirm your email address. To complete the subscription process, please click the link in the email we just sent you.
Popular Stories
More
Climate adaptation
Why Switzerland is among the ten fastest-warming countries in the world
This content was published on
By 8am on Saturday, an 11-kilometre queue had formed at the Gotthard tunnel’s northern entrance, with drivers facing nearly two hours of delays.
Plant-based meat market in Switzerland set to grow to CHF361 million by 2030
This content was published on
Switzerland’s market for plant-based meat alternatives has a potential value of around CHF 242 million this year, though it remains a niche market.
This content was published on
The army is looking for a modern solution for its decommissioned fortress mortar bunkers, with plans to turn them into hardened defence hubs.
This content was published on
Spain ended Switzerland’s run in the Women’s Euros on Friday, but fans in Bern made history with the largest supporters’ march in Women’s Euros history.
This content was published on
Solar energy pioneer Raphaël Domjan and his team continued preparations for the altitude record attempt at 10,000 metres with the SolarStratos solar aircraft.
This content was published on
Cattle in the canton of Geneva and in the neighbouring region of Terre Sainte in the canton of Vaud are being vaccinated against the contagious viral skin nodule disease. The first cases of the animal disease were reported at the end of June in France, just outside Geneva.
Fewer attacks on Swiss ATMs but their future remains uncertain
This content was published on
Bank ATMs in Switzerland are less prone to attacks by criminals, but their future remains uncertain given the less active use of cash by the population.
This content was published on
A series of rockfalls occurred above the village of Brienz between 9 and 12 July. According to the municipality of Albula, the overall situation remains tense. Several people disregarded the ban on entering the area around the village.
This content was published on
Arosa Bergbahnen achieved the highest figure in its 95-year history in the 2024/25 financial year with net revenue of CHF 37 million. Arosa Lenzerheide was able to capitalise on strengths such as snow reliability and the size of the ski area in a long winter season, the company announced on Thursday.
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.