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The Swiss National Bank (SNB) has lowered the policy rate several times in 2024, most recently to 1% in September, in order to support moderate economic growth and declining inflation. These interest rate cuts will boost investment activities as well as demand. In the rental housing market, the price increases of the first half of 2024 did not continue into the third quarter. However, – due to the housing shortage – any reversal in the trend for rising rents is not expected in the medium term. Residential construction activity is not forecast to ramp up until 2026. Residential investment properties will continue to follow a positive trend in 2024, with rising market values and higher demand for residential properties. In the office space market, there was a slight drop in rents across Switzerland, with trends varying from one region to another. However, investment office properties will remain stable to slightly positive in 2024. Prices for single-family units and owner-occupied units continued to rise slightly and the pool of buyers remains limited in many regions.
Sebastian Zollinger
Director, Head Real Estate Advisory, PwC Switzerland
Tel: +41 58 792 28 87