Key facts:
- Key interest rate 0.5%: Cheaper mortgages boost demand for real estate.
- Strong demand: High immigration and limited supply are driving up prices in urban regions.
- Digitalization: PropTech companies use AI and automation for more efficient processes
The Swiss real estate market is looking forward to a dynamic year in 2025, characterized by economic changes, technological innovations and demographic developments. Players in this sector should keep a close eye on the following trends and developments in order to make the most of the opportunities that arise.
Economic framework conditions 2025
The Swiss National Bank(SNB) recently lowered the key interest rate to 0.5%, which has a direct impact on real estate financing.
- Mortgage loans: The fall in interest rates has reduced the financing costs for real estate and opened up new opportunities for investors, private buyers and sellers. For home buyers, the low interest rates mean lower monthly charges, making the dream of home ownership more tangible for many. At the same time, sellers benefit from the increased demand, which is boosted by the attractive financing conditions, and can sell their properties at good conditions.
- Investment properties: Investors benefit from a better cost-return balance, especially with long-term financing. This development is boosting demand for real estate in both the residential and commercial sectors, as financing models can be designed more flexibly to better meet individual needs. Apartment buildings and rental properties in particular are benefiting from the favorable financing conditions. Investors can expect stable returns as demand for rental apartments remains high.
This development could lead to real estate remaining in high demand, particularly in central locations. Investors benefit from lower financing costs, which further increases the attractiveness of real estate investments in Switzerland.
Demand and demographic changes
Demographic trends in Switzerland are influencing the real estate market. Continued high net immigration – with over 58,000 people between January and September 2024 – and rising household formation are increasing the demand for living space, particularly in urban areas. Construction activity fell short of demand in 2024, leading to a further shortage of living space. This development is driving up rental prices.
In addition, the population in Switzerland is getting older, which increases the need for age-appropriate living space.
New construction: Innovative solutions to the housing shortage
Construction activity in Switzerland is showing signs of recovery and could regain momentum in 2025. According to forecasts , the construction volume is expected to increase by 5.7% in the coming year as investment in new projects increases and existing bottlenecks are gradually reduced. In urban areas in particular, the focus will be on compact and efficiently planned residential buildings in order to meet rising demand.
Investors and developers are nevertheless faced with the challenge of not only implementing projects more quickly, but also making them economically attractive in order to remain competitive in the long term. The pent-up demand for housing, particularly in urban regions, remains a driving factor for the market.
Digitization and technology
Modern technologies such as virtual viewings and automated price evaluation tools are now standard in the industry.
However, digitization is not yet complete across the board. Smaller companies in particular face the challenge of providing resources for comprehensive digital solutions. In addition, the human factor remains crucial: resistance to change and a lack of training are hampering progress in some areas.
Leading PropTech companies such as properti are going beyond these standard processes and utilizing the possibilities of artificial intelligence (AI) and automation. The question of whether the term “digitalization” is still appropriate is increasingly coming into focus – because the next stage, the age of AI, requires a complete digital infrastructure.
The Swiss real estate market in 2025: an outlook
The year 2025 offers exciting prospects for all players in the Swiss real estate market – buyers, investors and especially sellers. The focus will remain on urban regions such as Zurich and Geneva, where high demand offers stable prices and attractive sales opportunities. Investment properties remain a safe investment, while lower financing costs and advancing digitalization are facilitating transactions. Sellers are benefiting from strong demand and can achieve the best price for their property through targeted marketing, supported by innovative PropTech solutions.
Those who remain flexible and recognize market trends early on will secure a clear advantage in this dynamic environment.
Data are without guarantee. The information on these Internet pages has been carefully researched. Nevertheless, no liability can be assumed for the accuracy of the information provided.
