UBS study: price stability and preference for durable goods

In its study published on August 7, 2025, UBS analyzes the situation halfway through the year. Price increases have accelerated since July 2024, with a 3.7% rise over 12 months. Mortgage lending has grown more than in previous quarters, while the sharp drop in interest rates has reduced the cost of ownership compared to renting. The decline in the number of building permits, linked to more cumbersome issuance procedures and the scarcity of land, has slowed residential construction activity. As a result, UBS forecasts that this increase will stabilize over the whole of 2025, with a rise of +3.5%.

Regional analysis: price stability in French-speaking Switzerland

In its regional analysis, UBS does not see any increased price imbalance in French-speaking Switzerland. The combination of rock-bottom mortgage rates, a shortage of new builds, and low running costs compared to rents, which have risen sharply in recent years, points to market stability.

Investor preferences and sustainable construction trends

Demand from buyers and investors remains high for new Minergie or THPE-type condominium projects. New projects where sustainability is actively implemented with effective reductions in operating and energy costs are favored by our clients, but also by banks. In fact, banks grant more favorable loans for the purchase of new certified projects than for the purchase of older condominiums, which sometimes require significant upgrades to comply with new standards and therefore significant additional charges to make up for the lack of renovation funds for these older condominiums.

Find out how Capvest integrates sustainability into its real estate projects on our dedicated page: https://capvest.ch/en/sustainability/