Pandemic raises house prices in Switzerland

The value of residential property in Switzerland continued to rise in 2021 as a result of the pandemic, and according to an analysis released on Tuesday, it will maintain the trend this year.

This content was published on Jan 04, 2022 – 13:55
January 04, 2022 – 13:55

The value of apartments increased by 7.3% during 2021, while the value of single-family homes increased by about 6.9%, according to the Swiss Real Estate Supply Index, whose data was compiled by Swiss Marketplace Group / ImmoScout24 in collaboration with real estate consultancy IAZI.

The study attributes this situation to epidemic-related changes in housing needs and strong economic development. In addition, migration continues and the supply of land is becoming scarcer, according to the report.

At the same time, consumer prices rose sharply, making hard assets such as residential real estate more attractive.

For their part, renters benefited from a 0.3% drop in average rents.

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In the new year, real estate prices are likely to remain on the rise, according to ImmoScout24. He says a reversal of the trend will depend on the monetary authorities.

The US Federal Reserve announced that it will raise the key interest rate faster than planned. Martin Weber, managing director of real estate at Swiss Marketplace Group, said that if the European Central Bank (ECB) and the Swiss National Bank (SNB) did the same, it would drive prices down in Switzerland. However, such a move by the Swiss National Bank is considered highly unlikely.