Higher interest rates from the central bank also came to Switzerland last year, although there is no evidence yet of this in real estate prices. Quite the contrary. At the end of the year, property prices and rents increased.
In December, residential property prices and rents in Switzerland rose once again. The real estate market has yet to feel the impact of the Swiss National Bank (SNB) raising its benchmark rate or mortgage rates that have climbed from their year-ago levels.
According to the Swiss Real Estate Offer Index from real estate consulting firm Iazi and SMG Swiss Marketplace Group (Immoscout24), offer prices for single-family homes rose 1.4 percent in December from their levels the previous month. They are up 4.7 percent from a year ago. Condominiums were marginally more expensive in December, up 0.1 percent from November, but compared to the previous year they rose 6.2 percent.
The average asking price per square meter ended the year at 7,475 francs for single-family homes and 8,515 for condominiums. Over the past two years, prices per square meter increased by around 1,200 francs for houses and 1,400 francs for apartments.
«Property owners were once again able to enjoy substantial increases in value and higher rental income in the past year,» says Martin Waeber, head of the real estate division at SGM. However, the market remains challenging for those who cherish the idea of owning their own home, becoming a more distant dream for many. It remains to be seen whether prospective buyers will continue to be willing to pay ever higher costs.
Rental Market Strained
The asking price for rents also increased across the board, but with clear regional differences. The average for Switzerland as a whole was up 1.1 percent in December and 4.3 percent year-on-year. The largest monthly increases were recorded in Zurich (+1.9 percent) and Ticino (+1.6 percent).
With a 6.1 percent increase, asking rents in 2022 increased significantly in the greater Zurich region, surpassed only by Ticino with 8.4 percent. The Lake Geneva region recorded a 3.8 percent increase with the smallest increase in northwestern Switzerland, at just 2.3 percent.
