Switzerland’s house prices climb during COVID-19 pandemic
The cost of buying a house in Switzerland continued to rise throughout 2021, thanks in large part to the COVID-19 pandemic. Experts say the increase in property value will continue into 2022.
COVID pandemic changed demand for housing in Switzerland
The Swiss Real Estate Offer Index, published January 4, found that the value of freehold apartments increased by 7,3 percent over the course of 2021. The price of single-family homes similarly climbed by 6,9 percent over the same period, and experts are predicting that the rise in house prices will continue throughout the next year.
The increase in house prices has been driven by changing demand for housing in Switzerland during the COVID-19 pandemic. Immigration into Switzerland has also continued to rise, while the supply of land across the country is becoming more scarce. Consumer price inflation has also risen, prompting people to want to invest their money in tangible assets such as property.
Rental prices in Switzerland have also declined
While the increase in prices is bad news for buyers, it has brought good news for those wishing to rent a property. According to the index, which was compiled by the Swiss Marketplace Group ImmoScout24 and property consultancy IAZI, rent prices fell over the year of 2021, by around 0,3 percent.
The drop, which was seen across the entire country - both in rural areas and in Swiss cities - was even more drastic during the month of December; in the weeks leading up to the end of the year, rent prices across Switzerland dropped by around 0,9 percent.
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