Real estate prices in Switzerland showed mixed trends in September. Single-family homes recorded the largest monthly increase of 1,5 percent since December 2022, according to data collected by Immoscout24 and real estate consulting firm IAZI.

According to the «Swiss Real Estate Offer Index,» the listed prices for single-family homes were 1,7 percent higher compared to the previous year.

In the past twelve months, offer prices for single-family homes have seen fluctuations both upward and downward. «Increases and decreases in the range of one percent were not uncommon,» the market survey states.

Pause in Condominium Prices – Significant Increase Compared to Last Year

In contrast, the offer prices for condominiums slightly decreased by 0,3 percent last month. However, compared to the previous year, there was still a significant increase of 2,9 percent.

Financing conditions have significantly improved due to the falling interest rates. «With a consistently tight supply, sellers apparently assume that this circumstance will positively impact the demand for single-family homes, despite the high price level,» says Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group.

Rental Offers Almost Universally Higher

In September, listed rents continued to rise, with an average increase of 0,7 percent across Switzerland. Year-on-year, this represents an increase of 3,2 percent.

The largest monthly increases were recorded in the Central Switzerland region, with +2,5 percent. Rents also rose in the Zurich metropolitan area (+1,6 percent), Northwestern Switzerland (+1,0 percent), Eastern Switzerland, and Ticino (each +0,9 percent). Offers remained unchanged in the Espace Mittelland region, while the Lake Geneva region saw a slight decrease of 0,7 percent.

Reference Rate Could Decrease in Spring

According to experts, the SNB's interest rate cuts are good news for existing tenants. If, as many economists expect, another 25 basis point cut to 0,75 percent occurs in December, a reduction in the reference rate could be possible by spring 2025.