House Prices Drop in Switzerland
As Switzerland faces a rental housing shortage, buying homes shows a mixed picture. Apartment prices are rising, but single-family home prices are falling.
Fastest Decline in French-Speaking Switzerland
According to MoneyPark, a mortgage provider and comparison site, the Swiss housing market has seen a mix of trends this year. In the first half of the year, the average price for single-family homes dropped by 2.2 percent.
- French-Speaking Switzerland: House prices fell the most, with a 4 percent drop. Prices are now similar to mid-2022 levels but are still 10 percent higher than in 2017.
- German-Speaking Switzerland: Prices fell by only 1.3 percent, making houses in this region 5 percent more expensive than in the west.
Rising Apartment Prices and Affordability Issues
Apartment prices in Switzerland rose by an average of 0.5 percent in the last six months. Despite this, buying a home remains unaffordable for many. In April 2024, a UBS study found that only 15 percent of the population could afford to buy a single-family home, compared to 60 percent 20 years ago.
Changes in the Mortgage Market
Fluctuating interest rates have led to a 58 percent drop in demand for rate-tied Saron mortgages between January and July 2024. Fixed-rate mortgages are becoming more popular, especially in French-speaking areas.
Insurance providers and pension funds are increasingly offering mortgages. In the first six months of 2024, banks issued 51 percent of mortgages, insurers 31 percent, and pension funds 18 percent. At the end of 2022, banks issued 75 percent of mortgages.
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