Swiss real estate market in difficulty: houses are few

Post on: 02.06.2025

Despite the interest rates In Switzerland, too few houses are being built in Switzerland. & This is what emerges from a study by the Raiffeisen bank, which launches the Alarm: Population growth è moreù rapid construction of new homes.

Too few new homes compared to the population

In recent years, the construction of new homes has slowed down. Between 2004 and 2017, 7.3 new homes were planned in the per 10,000 inhabitants. Between 2020 and 2024 the number è dropped to 5.5. This slowdown is not è sufficient to cover the needs linked to population growth.

Replacement constructions are increasing, but not enough

Often old ones are demolished to build new homes. Today, for every 100 new houses, 17 old ones are demolished. These are mainly dated buildings, but also constructions from the 1990s 60-'80.

Questa " densification" helps to create more but has negative effects: cheap housing disappears and environmental resources such as the “ Grey energy" used to construct old buildings.

The rental market è more and more; Tense

Scarcity; increases rents. The supply is unable to meet demand, also driven by the immigration. This leads to more pressure on existing apartments and makes it difficult to find an affordable home.

Più projects in 2024, but still not enough

In 2024, applications were submitted for 3,400 more homes; compared to the previous year (+7%). However, according to Raiffeisen, it will not be enough to solve the problem. Even if rates fall, regulatory constraints and scarcity of building land hinder new projects.

Owned houses: rising prices

The property market è Lively again. In one year, the prices of single-family houses have increased by 5%, those of apartments by 3.5%. Many families are still able to buy a house using retirement savings or inheritance advances. The upward trend in prices could continue.

Back to the office: Demand for space is growing

Many companies are asking employees to return to the office. Remote work è down from pandemic levels. The increase in physical presence and employment growth has brought back the interest in office properties, the prospects for which are improving.