Swiss Housing Market: Premium Segment Continues to Rise

Switzerland's residential property market closed 2024 with solid price growth in the premium segment and renewed interest from investors, according to Julius Baer. Despite geopolitical instability and slowing GDP growth, the market remains resilient, supported by low interest rates, increasing household wealth, and a persistent supply shortage.

Strong Growth in High-End Property

By the end of 2024:
- Premium apartment prices rose by 4.1%
- Private home prices increased by 4.6%
- Zurich and Central Switzerland saw growth near 6%
- Geneva and the Lake Geneva region saw more moderate gains of up to 5%

Sales volume also surged:
+9% across core regions
+20% in the top price brackets

Demand is primarily driven by wealthy domestic and international buyers, particularly for properties priced above CHF 15,000 per square meter. The Swiss National Bank (SNB) cut its benchmark rate four times in 2024 and again in March 2025, lowering it to 0.25%, boosting mortgage affordability.

Rental Market Pressure

By late 2024:
- Vacant units fell to just 103,200 — a ten-year low
- This represented only 4% of total rental stock
- Supply is down 42% from early 2021
- Rents climbed 4.7% in 2024 and are forecasted to rise further

The SNB’s rate cut in March 2025 opens legal avenues for rent renegotiations, but ongoing population growth and tight supply continue to drive rents higher.

Industrial Property Remains Resilient

Industrial real estate recorded a stable 5.2% return in 2024. Despite macro risks, the sector remains strong due to high self-occupancy rates and owner-use models. Modest rent growth (+1.8%) underscores continued demand. Meanwhile, premium housing in Geneva, Zurich, and Lucerne attracts buyers focused on status, capital preservation, or lifestyle, not yield.

Outlook for 2025

Julius Baer forecasts continued value appreciation for top-tier residential assets, especially in major cities. While investor returns remain modest (typically 2–3% annually), Switzerland retains its appeal due to legal stability, exclusivity, and its role as a secure capital haven.