German-speaking Switzerland and Ticino: This is how expensive home ownership has become in the last 12 months

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However, the growth rate has weakened significantly as a result of repeated interest rate increases, according to an analysis of house prices conducted by the Swiss Real Estate Institute on behalf of the real estate portal Newhome, published on Monday.

Detached house prices increased by an average of 3.6 percent, well above the general inflation of 2.1 percent. Condos, on the other hand, did not become much more expensive (+0.4 percent).

The evaluation is made not according to the prices in the advertisements, but according to the effective sales prices of the Swiss Real Estate Data Pool (SRED). This includes homes financed by Credit Suisse, UBS and Zürcher Kantonalbank, and covers around 40 percent of all transactions in Switzerland. In 2023, 6,631 houses changed hands in the six regions examined.

The most expensive houses in Central Switzerland

Of the six regions examined, the detached house in Central Switzerland is the most expensive. Last year, an average of 1.64 million francs had to be paid for this. This is 5.1 percent more than in 2022, the previous year. The Zurich region comes in second with an average price of 1.54 million (+1.3 percent).

But the strongest price increases occurred in eastern Switzerland (+8.2 percent) and Ticino (+6.7 percent), ahead of northwestern Switzerland (+3.5 percent). The strong surcharges in Eastern Switzerland and Ticino can be explained by the compensation effect and the fact that financing is still easier because prices in both regions are lower than elsewhere.

Espace Mittelland, i.e. the cantons of Bern and Solothurn, was the only region where prices fell (-2.1 percent). Detached houses were also the cheapest, with an average sales price of 920,000 francs.

Apartments in Zurich have become more expensive

When it comes to apartments, the Zurich region has overtaken Central Switzerland at the top. In Zurich, apartment prices increased by an average of 1.8 percent to 1.14 million francs, while in central Switzerland they decreased by 3.6 percent to 1.08 million francs. A year ago, both regions were at the top.

All other regions became more expensive, except Espace Mittelland, where average prices fell by 8.8 percent. This means that an apartment in the cantons of Bern and Solothurn costs just 620,000 francs. Espace Mittelland replaced Ticino as the cheapest region (680,000 francs).

The differences between municipalities are huge: Among the five most expensive municipalities for detached houses, the municipality of Erlenbach ZH is by far the top with an average property price of 5.16 million. The number of single-family houses here is on average 1.31 million higher than in the second most expensive municipality, Hünenberg (3.85 million). (SDA)

Source :Blick