Swiss property prices continue rise in third quarter

Residential property prices continue to rise in the third quarter Keystone-SDA

Prices for owner-occupied residential property in Switzerland continued to rise in value in the third quarter of 2025. Single-family homes have recently become slightly more expensive than condominiums.

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Compared to the second quarter, transaction prices across Switzerland rose by an average of 1%, according to the Private Real Estate Price Index calculated by property consultants IAZI and published on Tuesday. In terms of property type, the increase in the value of single-family homes (+1.1%) slightly exceeded that of condominiums (+0.8%).

Compared to the previous year, prices for residential property rose by 2.6% overall.

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Higher prices were also paid for multi-family houses, so-called investment properties, and mixed-use properties in the third quarter (+1.3%). This points to a noticeable increase in demand recently, according to the report.

Over the year as a whole, however, prices rose by just 1.5%, following a very subdued trend in the previous quarters. According to the real estate consultant, this figure is well below the long-term average of +3% since 1998.

IAZI sees the expansive monetary policy as the main driver of the latest development. After the SNB confirmed its zero interest rate policy in September, investment properties have become more attractive in relative terms compared to fixed-interest securities.

Abolition of imputed rental value

Although the voters’ decision to abolish the imputed rental value will lead to welcome financial relief, the IAZI believes that this will only have a marginal impact on property prices at most. Immigration, interest rates and the shortage of building land are likely to remain the main drivers of property prices.

The outlook is clouded by the US tariffs on Swiss exports, according to the report. In various cantons with a high proportion of exports to the United States, this could have a negative impact on the manufacturing industry. However, it is still unclear whether and to what extent this will affect the property markets.

Translated from German with DeepL/mga

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