Swiss real estate suffers from a “persistent imbalance”

The prices of owner-occupied apartments and single-family houses increased in Switzerland at the end of 2024. Regional disparities are, however, obvious.

The end of the year did not offer any respite to those who wanted to purchase a home.

From October to December, prices for single-family homes increased by 1.4% compared to the previous quarter and even by 4.8% compared to the same period of 2023, according to the latest assessments published on Friday by Fahrländer Partner Raumentwicklung ( FPRE).

High-end goods experienced the greatest increase in prices (+1.9% over one quarter and +6.4% over one year). The prices of other segments also increased, for the low end by 0.9% and 3.4% respectively and for the middle by 0.7% and 3.1%.

The price curve by region appears more contrasted. In Geneva, house prices in the mid-range segment decreased by 0.3% compared to the third quarter, but increased by 2% year-on-year. In the Jura region, prices rose by 1.5% and 1.6% respectively. Over one year, the largest increases were noted in the Alpine region (+6.3%), on the Plateau (+4.9%) and in Zurich (+4.5%). Prices stagnated in Basel and surrounding areas (-0.2%) and fell in the south of the country (-2.3%).

Price increases still to be feared

Prices of condominium apartments (PPE) also increased both compared to the previous quarter (+1.2%) and year-on-year (+1.6%). Compared to the July-September period, the increase is most marked in the lower segment (+2.3%), but the middle and upper segments also increased (+1.3% and +0.9%).

Nationally, the increase reached 1.3% over one quarter and 2.5% over one year for apartments in the middle segment. The strongest annual growth was recorded in Zurich (+3.6%), on the Plateau and in Geneva (+3.1% each). Conversely, stagnation occurred in and around Jura and a decline was even visible in Basel (-1.1%).

Given strong demand and continued weak construction activity, FPRE expects prices for single-detached homes and condominium apartments to continue to increase over the next twelve months, although with some differences regional.

“In regions where demand is strong, such as the metropolitan areas of Zurich or the Lake Geneva region, the persistent imbalance between supply and demand should lead to further price increases,” according to Stefan Fahrländer, partner at FPRE, quoted in the document. “On the other hand, in less central or peripheral regions, price developments should be more stable,” he added.

Earlier in the week, the same scenario was envisaged by Raiffeisen. “Demand should continue to increase at the start of the new year and price developments should accelerate once again,” anticipated Fredy Hasenmaile, chief economist of the St. Gallen banking cooperative. (jzs/ats/)

Coop will not renew its contract with The Body Shop Switzerland. The 108 employees will receive internal offers, and 33 spaces will be re-evaluated.

Coop will not extend the franchise contract linking it to The Body Shop Switzerland, which runs until the end of May.

The 108 employees concerned will be offered a job offer within the Basel cooperative, while the latter will evaluate the use by its specialized formats of the 33 vacated sales areas.