Prices for residential property rise by over 3 per cent
Single-family homes cost 3.9 per cent more and owner-occupied flats 3.1 per cent more in the first quarter of 2024 compared to the same quarter of the previous year. Compared to the last quarter of 2023, prices for single-family homes rose by 1.4 per cent, while those for condominiums stagnated. This is shown by the Raiffeisen index.
The market for owner-occupied residential property remains robust in the first quarter of 2024, according to Raiffeisen in its media release on the Q1 transaction price index. According to the report, prices for single-family homes rose by 1.4 per cent in the first quarter of 2024. This means they have become 3.9 per cent more expensive compared to the same quarter of the previous year.
Single-family homes around Lake Geneva (+7 per cent) and in western Switzerland (+5.9 per cent) recorded the strongest year-on-year increases. In contrast, prices in Eastern Switzerland stagnated (+0.0 per cent).
By contrast, prices for condominiums have risen the most in Northwestern Switzerland (+7.2 per cent) and Central Switzerland (+4.9 per cent) over the past four quarters. Prices rose only slightly in eastern Switzerland (+0.7 per cent) and on Lake Geneva (+0.9 per cent). Compared to the previous quarter, prices for owner-occupied condominiums fell by an average of 0.3 per cent.
“Now that the SNB has heralded a downward turn in interest rates due to surprisingly low inflation figures, buying is once again somewhat more attractive than renting a comparable flat,” says Raiffeisen chief economist Fredy Hasenmaile. “This will increase the recently declining demand for residential property again and thus support price momentum.”
Within the space of a year, prices for home ownership rose by 7.1 per cent, the most in central municipalities. In the condominium segment, urban municipalities recorded the strongest price increases (+4.4 per cent).