Stable increase in the third quarter of 2024
Entwicklung der Anzahl der Transaktionen seit 2014 pro Quartal
Property prices in Switzerland continued to rise in the third quarter of 2024, driven by a combination of falling interest rates and sustained demand. While prices for flats rose significantly, single-family homes showed more moderate growth. However, transaction volumes remained at their lowest level in five years.
In the third quarter of 2024, the Swiss property market recorded its third consecutive quarter of rising prices. Flat prices rose by 1.1%, while prices for single-family homes increased by 0.3%. Stronger growth was observed in the lower-priced markets in particular. Prices rose at an above-average rate in cities such as Neuchâtel, Sion and Biel. In contrast, large cities such as Zurich and Basel only recorded moderate increases.
Regional differences characterise the market
There were also significant differences at cantonal level. Neuchâtel ( 1.9 %), Valais ( 1.8 %) and Jura ( 1.6 %) led the price increases, while slight declines were recorded in Vaud and St. Gallen. This trend also continued for single-family homes, with increases particularly in more rural cantons such as Appenzell Innerrhoden and Obwalden, while prices fell slightly in urban regions such as Geneva and Lausanne.
Low transaction volumes despite positive outlook
Despite price growth, the third quarter saw the lowest transaction volume since 2017. This decline is partly due to seasonal factors, but also reflects a general slowdown. Forecasts suggest that the fourth quarter of 2024 could also be at a moderate level, although a return to previous highs is unlikely.
Interest rate cuts are fuelling the market
The latest interest rate cuts by the Swiss National Bank (SNB) are having a positive impact on mortgage interest rates and helping to stabilise the market. While long-term interest rates have only been cut slightly, experts expect the SNB’s loose interest rate policy to continue to support the property market.
The fundamental data suggests that property prices will continue to rise in the coming months. Now could be a favourable time for potential buyers to enter the market, as waiting any longer could lead to higher prices.