Prices for luxury properties rose by more than 3 percent on average in 2025. This represented a slowdown compared with the previous year and was also slightly weaker than price developments across the broader owner-occupied housing market, UBS Chief Investment Office GWM (UBS CIO GWM) wrote in its study published on Thursday. The analysis covered 31 prime locations across Switzerland.

With a price increase of 6 percent, the luxury property segment in Alpine regions stood out in particular. Growth was even stronger than in the previous year. The development was driven primarily by wealthy international buyers. For the current year, however, the luxury property market is expected to underperform the broader market.

St. Moritz Tops the Ranking

According to the study, St. Moritz leads the ranking of the most expensive luxury locations, with average prices of around 52’000 francs per square metre. In Gstaad and Verbier, buyers should expect average prices of roughly 45’000 francs per square metre. Outside the Alpine regions, the highest prices are found in Cologny on Lake Geneva, at around 43’000 francs per square metre. The most expensive location on Lake Zurich is Küsnacht, with average prices of approximately 37’000 francs per square metre.

On average across Switzerland, buyers should expect to pay between 4 million and 5 million francs for a 150-square-metre condominium in a prime location with high-end finishing standards in luxury municipalities. For single-family homes with plots exceeding 1’000 square metres, prices quickly rise above 10 million francs.

In recent years, strong stock market performance has led to a significant increase in wealth. Switzerland currently has nearly 10’000 taxpayers with assets exceeding 10 million francs — around 50 percent more than in 2019. In addition, recurring geopolitical tensions have continued to support the appeal of the Swiss property market among foreign buyers.

This trend is expected to continue. «Nevertheless, we expect price growth in 2026 to be weaker than in previous years,» the experts wrote. «Weak economic conditions and declining affordability for luxury condominiums in the mid-single-digit million-franc range are likely to dampen demand.» In many primary residence markets around Lake Geneva and Lake Zurich, prices have recently already reached a plateau.

Slower Employment Growth Becomes Noticeable

In the Zurich and Zug regions, demand is driven primarily by high-income expatriates. «In 2025, weaker employment growth in the Zurich region noticeably slowed demand, while momentum in the Zug area continued,» the report stated. Given the weak economic environment, willingness to pay is expected to stagnate in the future.

In the Lake Geneva region, demand from the Middle East is expected to increase slightly. The success of commodity trading firms has strengthened buyers’ willingness to pay.

In Ticino, prices stagnated last year. The local luxury property market has experienced long selling periods, but it continues to be supported by wealthy newcomers from Italy and by the solid development of Lugano’s financial centre.

No Reversal Expected in Alpine Regions

In Alpine regions, luxury properties are now around 40 percent more expensive than five years ago. No trend reversal is expected there. The luxury markets in St. Moritz, Gstaad and Verbier are characterised by foreign investors with low price sensitivity, and holiday homes in the mountains are increasingly viewed as investment assets.