The Switzerland residential real estate market is making headlines in 2025 as property prices surge across the country. Driven by robust demand and favorable financing conditions, both houses and apartments have seen notable appreciation in the first half of the year, with momentum picking up pace in Q2 2025.
Swiss Real Estate Prices on the Rise
According to the latest data from mortgage broker Moneypark and real estate data specialist Pricehubble, average prices for single-family homes across Switzerland rose by 3.4% in the first half of 2025. Condominium prices increased by 2.4% during the same period. On a year-over-year basis, single-family houses became 7.4% more expensive, and condominiums saw a 4.2% increase in value.
Regional Comparison: French-Speaking vs. German-Speaking Switzerland
- French-speaking Switzerland outpaced German-speaking regions, with house prices rising 3.6% compared to 3.2% in German-speaking Switzerland in H1 2025.
- For condominiums, the growth was more balanced: up 2.4% in German-speaking Switzerland and 2.3% in French-speaking areas.
- Compared year-on-year, condo prices increased by 4.5% in French-speaking Switzerland and 3.8% in German-speaking parts.
Mortgage Trends: Preference for Flexibility and SARON Mortgages
The 2025 mortgage landscape in Switzerland is seeing a shift in buyer preferences:
- Medium-term mortgages (5–9 years) are now more popular than longer-term ones.
- SARON mortgages (Swiss Average Rate Overnight) are in greater demand, especially in German-speaking Switzerland, where they represent 19% of new mortgages, compared to just 7% in French-speaking Switzerland.
- For first mortgages, SARON accounts for over 10%, and for second mortgages, more than 20%—allowing borrowers to maintain flexibility in an uncertain interest rate climate.
Banking Sector Gains Market Share
Swiss banks are significantly benefiting from this shift toward SARON mortgages, expanding their market share to 67%—a notable 12% increase from last year. This uptick comes as insurance companies and pension funds see their respective shares at 19% (down 39%) and 14% (up 56%).
Key Drivers Behind Swiss Property Price Growth
- High demand: Low borrowing costs and strong appetite for homeownership continue to bolster the market.
- Limited supply: Competition for available homes and condos remains fierce, particularly in urban and sought-after areas.
- Flexible mortgage products: Homebuyers and investors increasingly value mortgage arrangements that offer adaptability and protection against future interest rate changes.
Outlook: Swiss Real Estate Remains a Safe Haven
As we move through 2025, the Switzerland residential real estate market shows no sign of cooling. With demand outstripping supply and banks adapting to new mortgage trends, property values are poised for further growth. Both domestic and international buyers view Swiss real estate as a stable and resilient investment.
Thinking of Buying in Switzerland?
Buyers should keep an eye on regional price differences and mortgage structures to make informed decisions. Consulting with Swiss real estate and mortgage experts can ensure you secure the best financing and investment value in this dynamic market.
Sources: Moneypark, Pricehubble, Swiss residential real estate report 2025
