House prices rise 5,7 percent in Switzerland
A new report by the Federal Statistical Office has found that the cost of housing in Switzerland has risen dramatically over the past year. Property price inflation stood at 5,7 percent on average in 2021, with more price increases expected this year.
Cost of all types of housing increased
The Swiss residential property price index (IMPI) - the metric that measures how much it costs to buy a house in Switzerland based on real estate transactions - rose by 2,6 percent in the fourth quarter of 2021. Compared to the same time the previous year, house prices increased by 5,7 percent overall.
Price rises differed depending on the type of housing, with single-family homes seeing an increase of 8 percent between the end of 2020 and the end of 2021, and apartments seeing rises of 6,7 percent. This comes at the same time as reports that the cost of renting a house or apartment in Switzerland has also increased over the last year.
Housing inflation to continue to rise in Switzerland
The biggest rises were seen in Swiss cities, specifically the more rural suburbs of larger towns - a phenomenon that is perhaps unsurprising, as many Swiss cities have been named the most expensive places in the world to live, forcing those looking for property in urban areas to look further afield. The slowest price rises were seen in rural areas and smaller, more isolated towns.
Inflation remains an issue for homeowners, with Swiss banks already moving to increase interest rates on mortgages. As the expected rise in general inflation takes hold, it is likely that house prices will continue to rise.