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What do the latest numbers reveal about Switzerland’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Switzerland, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Skiing Property
1) Geneva's rental yields for homes are expected to stay around 3.5% over the next two years
Geneva's rental yields for residential properties are expected to stay steady at around 3.5% over the next two years.
This stability is largely due to the city's strong demand for housing. Geneva is a major international hub, attracting professionals and expatriates who need places to live. With low vacancy rates, most properties are quickly rented out, keeping rental prices consistent.
Geneva's population is also on the rise, which means a constant demand for housing. This growing population helps maintain stable rental yields, as more people need homes.
The combination of these factors creates a balanced market where rental yields remain stable without much fluctuation. This makes Geneva an attractive option for property investors looking for reliable returns.
In summary, Geneva's status as an international city, coupled with its growing population and low vacancy rates, ensures that rental yields stay around 3.5%. This stability is appealing for those considering investing in the city's real estate market.
Sources: KPMG Report
2) Demand for energy-efficient homes in Switzerland is projected to increase by 20% by 2025 due to environmental regulations
In Switzerland, the demand for energy-efficient homes is set to increase by 20% by 2025 due to stricter environmental regulations.
Switzerland has been proactive in promoting energy efficiency, with the government implementing measures like the revised CO2 Act. This act, effective from 2023, bans fossil fuel heating systems in new buildings, pushing for greener alternatives. Such regulations are part of a larger plan to cut down energy use and CO2 emissions.
The Energy Strategy 2050 is another key initiative, aiming to make Swiss buildings more energy-efficient. The goal is to halve energy consumption and achieve net-zero CO2 emissions by 2050. This involves not just reducing energy use but also encouraging renewable energy adoption.
Market trends reflect these changes, with a noticeable rise in demand for energy-efficient homes. This shift is driven by both regulatory pressures and a growing consumer preference for sustainable living. Buyers are increasingly interested in properties with features like photovoltaic systems, heat pumps, and modern insulation.
These energy-efficient features are not just about being eco-friendly; they also offer practical benefits. Homeowners are attracted to the prospect of lower operating costs, making sustainable properties more appealing. As a result, moderate price increases are expected in the residential property market.
Sources: Keifer Immobilien, Odyssee-Mure, Swiss Federal Office of Energy
We have made this infographic to give you a quick and clear snapshot of the property market in Switzerland. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) In Lausanne, the average price per square meter for homes is expected to surpass CHF 12,000 by 2025
In Lausanne, the average price per square meter for residential properties is projected to exceed CHF 12,000 by 2025.
Lausanne's property market is on the rise, driven by high demand and limited supply. The city's economic conditions are favorable, making it a hot spot for buyers. In 2023, Switzerland saw a 3.5% increase in condominium prices and a 2.5% rise in single-family home prices, reflecting this trend.
By October 2024, the average price per square meter in Lausanne had already surpassed CHF 12,000. Apartments were averaging CHF 12,629, while houses were at CHF 12,315. This data suggests that the 2025 projection is not just possible but quite likely.
Sources: Properstar, Neho, Maillard Immo
4) Switzerland's average mortgage interest rate is expected to stay below 2% through 2025
In Switzerland, mortgage interest rates have significantly decreased in recent years.
Thanks to the Swiss National Bank's strategic moves, mortgage rates became more affordable as they cut the key interest rate. This action directly impacted borrowers, making it easier to finance property purchases.
By the end of 2024, 10-year fixed mortgage rates fell from 2.26% to 1.55%, as reported by Comparis. This downward trend is expected to persist into 2025, with rates likely hovering between 1.45% and 1.65%.
The Schwyzer Kantonalbank has also predicted further reductions in key interest rates for 2025, hinting at the possibility of even negative rates. This ongoing decrease is crucial in maintaining low mortgage interest rates.
For potential property buyers, this means an opportunity to secure favorable mortgage terms in the near future. The financial landscape is shaping up to be quite advantageous for those looking to invest in real estate.
With these trends, the average mortgage interest rate in Switzerland is expected to remain below 2% through 2025, offering a stable and attractive environment for property investment.
Sources: Comparis Prognosis for Hypothekarzinsen 2025, Schwyzer Kantonalbank Zinsprognose
5) Residential properties in Switzerland using renewable energy are expected to increase by 30% by 2025
The number of residential properties in Switzerland using renewable energy sources is expected to increase by 30% by 2025.
In Switzerland, there's a noticeable shift in the real estate sector towards sustainability, driven by the climate crisis and growing ecological awareness. Homeowners and tenants are now prioritizing eco-friendly living spaces, making sustainability a necessity rather than a choice.
Renewable energy, particularly solar power, is gaining momentum in Switzerland. Photovoltaic installations are becoming more common, allowing homeowners to generate their own electricity. This change aligns with Switzerland's Energy Strategy 2050, which aims for climate neutrality and has already increased the share of renewable energies in total energy consumption to around 28% by 2021.
The Swiss renewable energy market is projected to grow steadily, bolstered by government initiatives to reduce greenhouse gas emissions. While hydropower remains dominant, the increasing capacity for solar power is expected to further drive market growth.
Sources: Oaks, EDA Admin, Mordor Intelligence
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6) By 2025, renovation costs for Swiss homes are expected to increase by 10% due to higher material costs
In Switzerland, construction costs have been steadily climbing over recent years.
The Baupreisindex, a key measure of construction prices, showed a 1% increase from October 2022 to April 2023, leading to a total rise of 4.3% over the year. This consistent upward trend in construction costs is something to keep an eye on if you're considering buying property.
While we don't have specific data on renovation costs in Switzerland, we can look at broader studies for insights. For instance, a study from the United States highlights how design choices, structural updates, and regional labor costs can significantly affect renovation expenses. Although this study isn't about Switzerland, it offers a useful perspective on what might drive costs here.
Moreover, the Swiss real estate market has seen substantial price increases over the years. From 2000 to 2021, single-family home prices jumped by about 80%, and apartment ownership costs soared by 94%. These price hikes, driven by demand and supply dynamics, can also indirectly influence renovation costs.
By 2025, the average cost of renovating a residential property in Switzerland is projected to rise by 10% due to increased material costs. This projection aligns with the ongoing trend of rising construction expenses, suggesting that material costs are a significant factor in the overall increase.
Sources: Immozins, Construct Elements, BWO Admin
7) Residential properties in Switzerland with EV charging stations are expected to grow by 20% by 2025
The number of residential properties in Switzerland with electric vehicle charging stations is expected to grow by 20% by 2025.
Switzerland is pushing hard for electric vehicles, aiming for 50% of new car registrations to be EVs by 2025. This means more people will need charging stations at home. The government is making it easier for people to switch to electric cars, which naturally boosts the demand for home charging options.
Swiss eMobility, with support from EnergieSchweiz, has put together a report that guides property owners on how to install and manage these charging stations. The report emphasizes the need for smart and expandable charging solutions to keep up with the growing number of electric vehicles.
As electric vehicles become more popular, the Swiss government is backing sustainable mobility initiatives. This support is a big reason why residential properties with EV charging stations are set to increase significantly by 2025.
For those considering buying property in Switzerland, it's worth noting that having a charging station could soon be a standard feature. The trend is clear: as more people drive electric cars, the infrastructure to support them is expanding rapidly.
With the government's push and the rising popularity of electric vehicles, the landscape of residential properties is changing. By 2025, many homes will likely have their own charging stations, making it easier for residents to own and charge electric vehicles.
Sources: Swiss eMobility and EnergieSchweiz, Investors in Property
8) By 2025, 50% of Swiss homes are expected to have security systems
Swiss homeowners are increasingly prioritizing safety and security due to rising concerns.
With a noticeable uptick in theft and burglary incidents, more people are considering security systems for their homes. The introduction of smart security systems has made it easier for homeowners to monitor and control their security remotely through mobile apps. This convenience has significantly boosted the demand for such systems.
Smart security systems now allow homeowners to monitor their homes remotely using mobile apps, making them more appealing. The ability to integrate these systems with other smart home devices adds to their functionality and attractiveness.
Technological advancements, like AI and IoT, have turned traditional security systems into intelligent and responsive solutions. This transformation has encouraged more homeowners to prioritize safety and protection.
As a result, there is a steady increase in the adoption of security systems in Swiss residential properties. The percentage of Swiss residential properties with security systems is expected to reach 50% by 2025.
These trends reflect a growing emphasis on home safety and the integration of technology in everyday life.
Sources: 6Wresearch
We made this infographic to show you how property prices in Switzerland compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) By 2025, a one-bedroom apartment in Geneva is expected to rent for over CHF 2,800 per month
In 2025, the average rental price for a one-bedroom apartment in Geneva is expected to surpass CHF 2,800 per month.
Geneva has always been a pricey place to live, especially for expats. Back in 2023 and 2024, one-bedroom apartments in the city center were already averaging around CHF 1,650 per month. This high cost of living is a key factor in the projected increase.
The real estate market in Switzerland has been steadily climbing. In 2024, experts predicted that apartment prices in Geneva would rise by 2 to 3% annually. This upward trend likely continued into 2025, pushing rental prices even higher.
Geneva's reputation as a major international hub adds to the demand for housing. With so many people wanting to live there, the competition for apartments is fierce, which naturally drives up costs.
These factors—historical rental trends, projected price hikes, and high demand—combine to explain why rental prices in Geneva are set to exceed CHF 2,800 per month for a one-bedroom apartment in 2025.
For anyone considering a move to Geneva, it's crucial to be aware of these dynamics. Understanding the local real estate market can help in making informed decisions about renting or buying property.
Sources: Properstar, Estimation-Bien-Immobilier
10) Residential properties in Switzerland with geothermal heating systems are expected to grow by 15% by 2025
In 2023, geothermal energy in Switzerland produced 4.5 Terawatt-hours of heat, covering about 5% of the nation's heating needs.
Geothermal energy is a significant part of Switzerland's renewable energy scene. In regions like the canton of Freiburg, newer buildings have embraced geothermal systems more than older areas like Basel-Stadt. This difference shows where growth is likely, especially in places with modern infrastructure.
While there wasn't a specific forecast for a 15% rise in homes using geothermal systems by 2025, the trend was evident. Geothermal energy was on the rise, with steady interest and investment pointing to more homes adopting this technology.
Switzerland's push towards renewable energy is clear, and geothermal systems are a part of this shift. The consistent growth in geothermal energy usage suggests that more residential properties will likely integrate these systems in the coming years.
In areas with newer buildings, the adoption of geothermal systems is higher, indicating a potential for increased usage as infrastructure develops. This trend is particularly noticeable in regions with modern construction.
As Switzerland continues to invest in renewable energy, the role of geothermal systems is expected to expand, with more homes turning to this sustainable option for heating.
Sources: Swiss Geothermal Association
11) Residential properties in Switzerland with biophilic design elements are expected to grow by 10% by 2025
The number of residential properties in Switzerland with biophilic design elements is expected to grow by 10% by 2025.
Switzerland's stable economy is a key factor in this growth, providing a solid foundation for real estate development. In recent years, there's been a noticeable shift towards integrating nature into our living spaces. This trend is driven by a desire to boost health, well-being, creativity, and productivity among residents.
Biophilic design isn't just about aesthetics; it includes practical features like plants, natural materials, and water elements. These components have been shown to improve indoor air quality, reduce stress, and encourage social interaction. As awareness of these benefits grows, more people are seeking homes that incorporate these elements.
Imagine living in a space where the air feels fresher, stress levels drop, and social interactions are more natural. That's the promise of biophilic design. It's not just a trend; it's a lifestyle choice that's gaining traction as people recognize its impact on daily life.
In Switzerland, this movement is gaining momentum, with more developers incorporating biophilic elements into their projects. The demand is rising as people look for homes that offer more than just shelter. They want environments that enhance their quality of life.
As we move towards 2025, expect to see more properties embracing this design philosophy. It's a shift that's not only about aesthetics but also about creating spaces that promote a healthier, more connected way of living.
Sources: IMMOBILIEN. MARKT 2025 by SVIT Schweiz
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.