Switzerland’s residential property market continues to experience strong price growth, reflecting a persistent imbalance between supply and demand. Supported by easing borrowing costs, the country’s housing market has seen consistent gains in both the apartment and single-family home segments. In Q3 2025, Wüest Partner’s Transaction Price Index reported a 4.47% year-on-year increase for privately owned apartments and 4.61% for single-family homes, highlighting the enduring appeal of Swiss real estate despite slower population and employment growth.
Experts predict that prices will continue to rise through 2025, albeit at a more moderate pace, with expected annual increases of 2.8% for apartments and 3.1% for single-family houses. Regional trends are even more pronounced: Central Switzerland and the Lake Geneva region led apartment price growth, while Northwestern and Central Switzerland showed the largest gains for single-family homes.
Zurich and Geneva remain the most expensive markets. Zurich’s average transaction price for apartments reached CHF 22,350 (USD 28,057) per square meter, while Geneva followed at CHF 21,450 (USD 26,927). Single-family homes tell a similar story: the national average stands at CHF 1,250,000 (USD 1,569,169), yet in Zurich, prices approach CHF 4,368,000 (USD 5,483,304), with Geneva slightly lower at CHF 3,292,000 (USD 4,132,563).
Foreign buyers face restrictions
Switzerland maintains strict regulations for foreign property buyers. The Federal Act on the Acquisition of Immovable Property by Non-Residents (ANRA or Lex Koller) requires prior authorization, with certain holiday homes and serviced apartments subject to cantonal quotas. This ensures that foreign investment does not overwhelm domestic housing supply, though it limits some international participation in the market.
Supply remains constrained
Supply shortages continue to define the Swiss housing market. At the end of 2024, Switzerland had over 1.8 million residential buildings and 4.84 million dwellings, with 58% of all homes being multifamily apartments. Owner-occupied single-family homes made up 24% of the market, and owner-occupied apartments only 12%. The rental segment dominates, with 58% of dwellings occupied by tenants.
Construction momentum has slowed in recent years. Only 40,750 new units were delivered in 2024—a 12.8% drop from the previous year. Modest rebounds are expected, with around 43,200 new units forecast for 2025 and 48,500 in 2026. While building permits have started to pick up since mid-2022, experts caution that it will take time for these approvals to translate into completed supply.
Vacancy rates fall, intensifying demand pressures
Tightening supply has led to historically low vacancy rates. The national vacancy rate dropped to just 1.00% in June 2025, its lowest level since 2013. Rental vacancies fell 8% year-on-year to 37,194 units, while owner-occupied units decreased by 2.5% to 11,261. Regions such as Canton Ticino and the Lake Geneva region saw particularly sharp declines. Geneva registered the lowest vacancy at 0.34%, followed by Zug at 0.42% and Zurich at 0.48%.
Raiffeisen Switzerland notes that owner-occupied homes have a “high absorption capacity,” indicating strong ongoing demand. Market analysts emphasize that even with moderate construction growth, supply is unlikely to keep pace with the underlying demand, particularly in urban centers.
Urban migration and demographic trends
Switzerland’s population grew by nearly 147,000 in 2023, largely driven by net migration. Although growth slowed to 88,800 in 2024, immigration remains a key factor in urban housing demand, particularly in cities like Zurich, Geneva, and Basel. The demographic structure—coupled with a traditionally low homeownership rate—supports continued demand for both rental and owner-occupied housing.
The Swiss housing market faces a future shaped by steady price growth, constrained supply, and strong urban demand. With interest rates remaining favorable and construction activity gradually rebounding, market fundamentals remain solid. However, the continued low vacancy rates and strict foreign ownership rules suggest that the market will remain competitive, particularly for those seeking prime urban properties.
Investors, homeowners, and developers alike are watching closely: Switzerland’s combination of price resilience, limited supply, and regulatory stability makes it an enduringly attractive market, even as growth moderates. For homebuyers, understanding regional dynamics and navigating strict authorization rules will be key to securing a property in this highly coveted housing market.
