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To anyone in Zurich, Basel or Geneva, this sounds too good to be true: Real estate prices have reached their peak. In fact, a new property monitoring report from real estate consultancy firm Wüest Partner predicts stagnation in house prices next year.
According to the forecast, apartment prices will increase by 1.2 percent in nominal terms in 2024, while the price of detached houses will increase by only 0.3 percent. Owning a home is actually becoming cheaper if you factor in inflation.
Buying an apartment instead of a house
But this does not mean that more people can now own their own homes. Because prices are already high and recession does not mean decline. For the majority of Swiss households, the dream of owning their own home remains just a dream.
Only 42 percent can buy condominiums. And only 21 percent own their own home. Conversely, this also means that 79 percent of households in Switzerland do not have the money necessary to buy their own home.
Condos are smaller on average and therefore less expensive than single-family homes. Some people still have condominiums instead of dreaming of a house with a garden.
Major regional differences
| Canton | Average priced apartment | Affordable for X% of households | Average price of a single-family home | Affordable for X% of households |
| Z.H. | 1,250,000 | 20% | 1,520,000 | 5% |
| TO BE | 790,000 | 54% | 980,000 | 32% |
| LU | 940,000 | 37% | 1,300,000 | 8% |
| your URL | 1,030,000 | 26% | 1,100,000 | 19% |
| S.Z. | 1,180,000 | 20% | 1,770,000 | <5% |
| O.W. | 980,000 | 28% | 1,300,000 | 6% |
| Northwest | 1,220,000 | %12 | 1,530,000 | <5% |
| GL | 680,000 | 64% | 730,000 | 58% |
| Z.G. | 1,760,000 | <5% | 2,430,000 | <5% |
| F.R. | 790,000 | 50% | 1,060,000 | 20% |
| FOR THIS REASON | 680,000 | 67% | 930,000 | 37% |
| Licence | 1,330,000 | 15% | 1,640,000 | <5% |
| B.L. | 1,020,000 | 38% | 1,220,000 | 19% |
| S.H. | 760,000 | 62% | 980,000 | 35% |
| AR | 770,000 | 59% | 940,000 | 39% |
| artificial intelligence | 970,000 | 31% | 1,080,000 | 23% |
| SG | 810,000 | 51% | 1,090,000 | 19% |
| GR | 1,170,000 | %11th | 900,000 | 35% |
| NETWORK | 830,000 | 52% | 1,150,000 | 20% |
| T.G. | 820,000 | 52% | 1,070,000 | 22% |
| T.I. | 890,000 | 30% | 940,000 | 24% |
| V.D. | 1,150,000 | 23% | 1,460,000 | <5% |
| ETC | 700,000 | 64% | 950,000 | 30% |
| northeast | 680,000 | 67% | 960,000 | 31% |
| G.E. | 1,610,000 | <5% | 2,170,000 | <5% |
| YU | 550,000 | 78% | 640,000 | 71% |
| CH (average) | 890,000 | 42% | 1,120,000 | 21% |
Regional differences are huge: In the canton of Jura, for example, 78 percent of households can afford to buy a condominium. In the cantons of Zug and Geneva this rate is less than 5 percent.
Striking: Apart from urban centers, especially in touristic areas, home ownership is beyond the reach of the majority. Prices cannot remain stable when it comes to second homes: second home prices across Switzerland increased by an average of 6 percent in the second quarter. Second home prices rose by 8 percent in Graubinden and 12 percent in central Switzerland. For comparison: In Zurich, apartment prices increased by 3 percent during the same period.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
