The Swiss residential property price index
published in mid-August by the Swiss Federal Statistical Office, shows an increase in prices for condominiums in the second quarter of 2022 compared to the same quarter the previous year. This represents an increase of 7.5%. Compared to the first quarter of 2022, prices have risen for both single-family homes (+2.0%) and condominiums (+3.3%), particularly in urban communities in small agglomerations or outside of agglomerations.

Furthermore, according to the Swiss Real Estate Report for the third quarter of 2022 published by Raiffeisen Bank, the recent rise in interest rates has not had a negative effect on the national housing market and prices should continue to rise in view of the low level of supply, even if demand were to weaken slightly.

In conclusion, the scarcity of land and the drip-feed of building permits are creating a strong gap between supply and demand and are therefore causing a real shortage. Although fixed rate mortgages have increased, buyers are opting overwhelmingly for the still advantageous variable rate SARON mortgages.