Swiss property prices continue to rise in third quarter of 2021
According to the Swiss residential property price index (IMPI), the cost of buying a house in Switzerland has continued to rise in the third quarter of 2021, increasing by around 2,4 percent between July and September this year.
Cost of property in both urban and suburban areas rising
Compared to the third quarter of 2020, the cost of housing has increased by 6,9 percent. According to data collected by the Federal Statistical Office (FSO), the price of both single-family houses and owner-occupied apartments rose significantly compared to the previous quarter; the price of single-family houses rose by 2,4 percent since Q2, while the price of owner-occupied apartments rose slightly less at 2,3 percent.
The FSO data also shows that the price of single-family homes rose in all cantons in Switzerland, in both rural and urban areas. Property prices climbed most in the category of “urban municipality in a small or outside an agglomeration", with prices increasing by 3,4 percent.
The IMPI index, which has compiled the data from the FSO, is a relatively new market indicator, having only been published since the third quarter of 2020. Despite its novelty, the IMPI is a strong indicator for Switzerland’s housing market, since it takes data from 26 mortgage providers and Swiss banks, covering a large proportion of the industry.
Switzerland’s housing market in 2021
While buying property in Switzerland can be expensive and difficult, renting in Switzerland isn’t particularly cheap either. In 2021, the median monthly rent for houses is 2.450 Swiss francs, and for apartments, it is significantly cheaper at 1.550 Swiss francs. Canton Geneva and Canton Graubunden are the most expensive cantons in the country to rent in.
The price per square metre when it comes to buying a house is most expensive in the city of Zurich, at 18.671 Swiss francs per square metre, in 2021. Other cities, such as Geneva, Basel and Lausanne, also rank near the top of the list. In contrast, some of the most affordable municipalities, including Zug, Neuchatel and Schaffhausen, have house prices that average less than 10.000 Swiss francs per square meter.