Swiss Property Prices: June Rise (cross-border guide)

Context

In a nutshell - House prices in Switzerland grew by 3.1% year-on-year in June. - Apartments registered an annual increase of 4.5% nationwide. - Zurich recorded the highest monthly growth for apartments at +2.3%. - Ticino shows stability for houses and an increase of 1.1% for apartments. - What: Growth in residential real estate prices - When: June (data on a monthly and annual basis) - Where: Switzerland (detailed analysis by regions and cantons) - Who: Immoscout24 and Cifi surveys - Amount: Houses at CHF 8,011/sqm and apartments at CHF 9,526/sqm Residential real estate prices in Switzerland registered a steady growth in June, confirming an upward trend that does not seem to stop. However, the data published by the real estate portal Immoscout24 in collaboration with the consulting firm Cifi show a strong fragmentation at the regional level, with marked differences between the individual Cantons. On an annual basis, the average cost of single-family homes reached CHF 8,011 per square metre, an increase of 3.1%. For apartments in floor properties, the progression was even more decisive, with an increase of 4.5% that brought the average price to CHF 9,526 per square metre. ### Regional dynamics for apartments Monthly growth in the apartment sector highlights how some geographical areas are driving the entire domestic market. The

Operational details

The trend in real estate values has a significant impact on household financial planning and the overall cost of living in Switzerland. Constantly rising prices make access to private property a complex challenge for many residents. Fluctuations in purchase prices also tend to be reflected, in the long term, also in the rental market, increasing the pressure on the monthly fixed expenses of households. ### The role of national economic factors Data on real estate price developments, often analysed in parallel with official inflation statistics provided by the UST/BFS, confirm the resilience of the Swiss brick market. This scenario fits into an economic framework closely monitored by the SNB, whose monetary policy decisions directly influence mortgage lending interest rates. Stability or price growth, depending on the areas, requires a careful assessment of the household budget. Cantonal taxes and direct federal tax also play a role in determining the total cost of ownership, particularly through the calculation of rental value. Those who intend to settle in Switzerland or change residence must carefully analyse the evolution of the regional costo della vita before committing to a long-term purchase, as geographical disparities can significantly change sustainability

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

To deal with the purchase of a house in Switzerland you need to follow a strict and well-planned financial procedure. The guidelines of the Swiss financial system require that the buyer has at least 20% of the value of the property in the form of equity. Of this share, at least 10% must be made up of actual liquid funds (savings, securities or donations) and cannot come from the early withdrawal of the LPP/BVG occupational pension or from the third pillar. ### Assessment of sustainability and practical steps The sustainability of the loan is calculated by applying a theoretical interest rate of 5%, to which are added the depreciation costs and annual maintenance costs, usually estimated at 1% of the value of the property. The sum of these theoretical costs must not exceed one third of the applicant's annual gross income. Before starting the search for a property, it is essential to contact the main banches active on the national territory to obtain an estimate of their financing capacity. This step avoids focusing searches on out-of-reach objects and speeds up decision times once the ideal property is found. To understand how your income positions itself with respect to spending requirements and better plan your personal finances in Switzerland, it is advisable to use our online calcolatore, a useful tool to simulate the impact of costs

Source: swissinfo.ch