House prices in Switzerland reach new highs as market booms
House prices are continuing to hit record highs, with most Swiss cantons experiencing an acute housing shortage. While this may be a bad time to get yourself on the property ladder, according to the Swiss Chamber of Brokers (CSC), there is no better time to sell your house in Switzerland.
Swiss houses now 30 percent more valuable than 10 years ago
According to real estate consultancy firm Iazi, a house or apartment in Switzerland costs almost 30 percent more today than it did 10 years ago. In many areas, like Zurich, Geneva and Lausanne, prices have increased by much more, as expats and locals move to areas with more lucrative jobs.
The President of the CSC, Ruedi Tanner, noted, “In many regions, there are hardly any listings on the property market.” The acute shortage of housing means “properties that have not found a buyer in recent years also have a chance of being sold," according to Sebastian Sinemus from the Swiss Marketplace Group.
Huge housing price rises here to stay, say experts
The housing shortage and booming property prices have also had a knock-on effect on Swiss mortgages. For the first time in 13 years, mortgage costs are now more expensive than renting a house or apartment in Switzerland, according to a report by Credit Suisse.
When asked whether the current price hikes are sustainable, most real estate experts said they do not expect a downturn in the near future. Tanner noted that, in times of crisis such as the Russian invasion of Ukraine and subsequent price hikes on goods, people look to buy houses as a form of financial security, citing the rate of property buying during the pandemic as an example.