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In December 2024, the Swiss National Bank (SNB) lowered its policy rate by 0.5 percentage points to 0.5%. Further interest rate cuts are possible, partly due to the easing inflationary pressure and the persistently weak economic development, which is likely to continue to have a positive impact on the Swiss real estate market. Rents have stabilised in the rental housing market, although immigration and limited supply continue to drive up prices. A slight increase in construction activity is expected, although this remains below the long-term average. Residential investment properties continued their recovery, supported by more attractive financing conditions and rising demand. In the office space market, central locations showed a stable to positive trend, while peripheral locations remain under pressure. Residential property prices have continued to rise, particularly for single-family units, since falling financing costs are supporting demand.
The information on market developments, on which Immospektive is based, can be found in FPRE’s real estate meta-analysis. References to FPRE graphics in our text are marked [1] etc.
Sebastian Zollinger
Director, Head Real Estate Advisory, PwC Switzerland
Tel: +41 58 792 28 87