Homes Remain Expensive Despite the Slump
Condominium prices rose again by 1.0 percent in the second quarter of 2026, while single-family home prices remained flat—albeit at a high level. The barrier to entry remains high for buyers, as low mortgage rates and a tight supply continue to prop up the market.
No relief is in sight for the Swiss housing market in the second quarter of 2026. Condominium prices rose by 1.0 percent compared to the previous quarter, while single-family home prices remained flat at a high level. Year-over-year, however, prices are clearly higher. Condos cost 4.2 percent more than in the second quarter of 2025, and single-family homes 3.4 percent more.
As a result, access to owner-occupied housing remains tight. For developers, marketers, and lenders, the key factor is that demand remains steady despite weaker quarterly momentum. Low mortgage rates and tight supply are keeping price pressure high. Based on available data, a rapid correction is not currently in sight.
Regional differences remain pronounced
Prices for single-family homes rose particularly sharply over the past year in Western Switzerland, at 6.3 percent. For condominiums, southern Switzerland recorded the strongest growth at 6.7 percent. At the same time, the market shows that trends are not uniform across regions. In the Lake Geneva region, condominium prices fell by 1.4 percent year-over-year.
The momentum in tourist towns is also striking. There, house prices rose by 6.0 percent year-over-year, and prices for condominiums rose by as much as 6.9 percent. This supports the observation that limited land availability, restrictions on second homes, and sustained demand continue to drive prices, particularly in recreational and mountain regions.
Interest Rates Continue to Support the Market
There are currently few signs that the market will ease up anytime soon. On June 18, 2026, the Swiss National Bank left its key interest rate unchanged at 0 percent. As a result, the financing environment for homeownership remains comparatively favorable, even though affordability is becoming more difficult for many households due to high entry prices. For the housing market as a whole, this exacerbates the well-known trend: those who cannot finance a purchase remain in the rental market longer.
Raiffeisen’s current transaction price index is based on property transfer data from Raiffeisen and the Swiss Real Estate Datapool (SRED). It shows one thing above all: the market is losing some momentum, but not its momentum. For the industry, this means continued pressure on supply and persistently high demands on acquisition, product positioning, and financing.