The prices paid for condominiums rose by an average of 2.4 percent. (Image Grand Warszawski/Shutterstock)
Prices for residential property in Switzerland continued to rise both in the fourth quarter and throughout 2023 as a whole. For single-family homes, prices rose by an average of 1.9 percent in 2023, and prices for condominiums rose by 2.4 percent.
The Swiss residential property price index (IMPI) increased by 1.1 percent to 117.4 points in the period from October to December 2023 compared to the previous quarter, as the Federal Statistical Office (FSO) announced. The price development for single-family homes (+0.5 percent), but particularly the increase in condominiums (+1.7 percent), contributed to the increase in the overall index.
Compared to the corresponding quarter of the previous year, the price increase was 1.2 percent. There is an opposite development between houses and apartments. While prices for condominiums rose by 2.5 percent, prices for single-family homes fell slightly by 0.2 percent.
According to the index, an average annual tax on residential property of 2.2 percent is calculated for the entire year 2023. The prices of single-family homes rose by an average of 1.9 percent and the prices of condominiums by 2.4 percent.
Community types develop differently
The development in the different community types was different. Single-family homes showed the strongest price increases in the fourth quarter in urban communities in a large agglomeration. Meanwhile, prices fell most significantly in urban communities in a medium-sized agglomeration.
When it comes to condominiums, prices rose the most in the category of urban communities in a small area or outside an agglomeration. In contrast, prices only fell in the urban communities of a large agglomeration.
Residential property price index
The IMPI is a relatively new indicator: it has only been published quarterly since the third quarter of 2020. According to the BFS, it is calculated from an average of around 7,000 transactions from all regions of Switzerland. The BFS obtains data from the 25 largest mortgage institutions in Switzerland. These cover a very large market share, as the vast majority of property purchases are financed with a mortgage, it is said.
2024-02-02 20:41:12
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