Swiss Real Estate Market: Modest Growth and Regional Variations in 2024
The Swiss real estate market in 2024 saw a modest increase in prices, with apartments and individual houses rising by 2% and 1.2%,respectively,according to the quarterly barometer released by Realadvisor,a leading platform specializing in online real estate estimation. This marks the third consecutive year where apartment prices have outpaced those of individual houses.
However, the fourth quarter of 2024 revealed a slowdown. Apartment prices dipped slightly by 0.1%, while individual houses saw a marginal increase of 0.1%.Regional disparities where stark, with cities like Schaffhausen (+1.8%),Winterthur (+1.3%), and Lausanne (+0.7%) leading in apartment price growth. In contrast, lugano (-0.7%), Lucerne (-0.4%), and St. Gallen (-0.5%) experienced declines.
Cantonal Variations: A Mixed Picture
At the cantonal level, Schaffhausen (+1.7%), Geneva (+0.8%), and zurich (+0.8%) saw strong growth in apartment prices. Meanwhile, Basel-City (-2.0%), Uri (-1.7%), and Basel-Country (-1.2%) recorded significant reductions.
Individual houses followed a similar pattern. Prices rose in Jura (+1.2%), Thurgau (+1.2%), Geneva, and Schaffhausen (+0.9%), but fell in Basel-City (-2.0%) and Basel-Country (-1.0%).
| Region | Apartment Price Change | House Price Change |
|———————|—————————-|————————|
| Schaffhausen | +1.7% | +0.9% |
| Geneva | +0.8% | +0.9% |
| Zurich | +0.8% | N/A |
| Basel-City | -2.0% | -2.0% |
| Basel-Country | -1.2% | -1.0% |
Decline in Transaction Volumes
While prices saw modest growth, the volume of real estate transactions dropped by 6% in 2024, marking the second consecutive year of contraction. Despite lower interest rates, activity levels remained substantially below the ten-year average.
Geneva exemplified this trend, with a 31% drop in transactions between the third quarters of 2023 and 2024—the lowest quarterly figure in over a decade. properties are also taking longer to sell,with individual houses and apartments staying on the market 40% longer than two years ago.
2025 outlook: A Repeat of 2024?
Looking ahead to 2025, Realadvisor predicts that Swiss real estate prices will mirror 2024 trends, with modest growth and transaction volumes below average. The ongoing standoff between buyers and sellers is expected to persist.
Jonas Wiesel, co-founder of Realadvisor, stated, “We therefore remain cautious and we expect the prices of swiss real estate in 2025 to follow inflation.” Supply constraints, driven by low construction activity, will continue to dampen market dynamics.
Key Takeaways
- Apartment prices grew faster than individual houses for the third consecutive year.
- Regional and cantonal variations were significant, with Schaffhausen and geneva leading in growth.
- Transaction volumes dropped by 6%, with properties taking longer to sell.
- 2025 is expected to see modest price growth and continued market caution.
For more insights into the Swiss real estate market,explore Realadvisor’s latest reports and analysis. Stay informed and make data-driven decisions in this evolving market.
Swiss Real Estate Market: Modest Growth and Regional Variations in 2024
In 2024, the Swiss real estate market experienced modest price growth, with apartments outpacing individual houses for the third consecutive year.Regional disparities were stark, with areas like schaffhausen and Geneva leading in growth, while others like Basel-City saw declines. Transaction volumes dropped by 6%, and properties took longer to sell. To delve deeper into these trends, we spoke with Dr. Lukas Müller, a renowned real estate economist and consultant, for his expert insights.
Apartment Prices Outpacing Houses
Editor: Dr. Müller, the data shows that apartment prices in Switzerland grew faster than individual houses for the third straight year. What’s driving this trend?
Dr.Müller: The preference for apartments is largely driven by demographic shifts and urbanization. younger buyers and downsizers are increasingly seeking convenience, frequently enough prioritizing location over space. Additionally, apartments are generally more affordable than houses, making them accessible to a broader market. Limited construction of new houses also plays a role, as supply constraints push buyers toward apartments.
Cantonal Variations: A Mixed Picture
Editor: The article highlights significant regional and cantonal variations. Why are some areas like Schaffhausen and Geneva seeing robust growth, while others like Basel-City are declining?
Dr. Müller: Regional variations are a hallmark of the Swiss real estate market. Areas like Schaffhausen and Geneva benefit from strong local economies, international appeal, and limited housing supply. In contrast, Basel-City is facing a combination of oversupply and reduced demand, especially in the luxury segment. Cantonal policies, infrastructure projects, and economic conditions all contribute to these disparities.
Decline in Transaction Volumes
Editor: Transaction volumes dropped by 6% in 2024, and properties are taking longer to sell. what’s causing this slowdown?
Dr. Müller: The decline in transactions reflects a cautious market.Buyers are hesitant due to economic uncertainty and rising interest rates, while sellers are holding out for higher prices.This standoff has lead to longer selling times,particularly for higher-priced properties. Additionally,the pandemic-fueled surge in demand has normalized,leading to a more balanced but slower-paced market.
2025 Outlook: A Repeat of 2024?
Editor: What’s your outlook for the Swiss real estate market in 2025? Will we see a continuation of 2024’s trends?
Dr. Müller: I expect 2025 to mirror 2024’s modest growth and cautious sentiment. Inflation and interest rates will remain key factors influencing buyer behavior. supply constraints, particularly in urban areas, will keep prices from falling significantly. However, the market may see a slight uptick in activity if interest rates stabilize or decrease, encouraging buyers to re-enter the market.
Conclusion
Our conversation with Dr. lukas Müller underscores the nuanced dynamics of the Swiss real estate market in 2024.From the sustained growth in apartment prices to regional disparities and declining transaction volumes, the market remains complex and ever-evolving. As we look ahead to 2025, cautious optimism and data-driven strategies will be essential for navigating this landscape effectively.