Zurich home prices remain on an upward trend
Prices for owner-occupied homes in the canton of Zurich are currently 4 per cent higher than in the previous year. These are the findings of an analysis by Zürcher Kantonalbank (ZKB). In view of the excess demand, the experts at ZKB expect prices on the property market to continue to rise in the future.
Favourable financing costs are continuing to drive demand for residential property in the canton of Zurich, Zürcher Kantonalbank reports in a press release. According to its surveys for the ZHK Real Estate Barometer in Q2 2025, prices for owner-occupied homes in the canton of Zurich were 4 per cent higher in the quarter under review than in the same quarter of the previous year. At the same time, prices in Zurich’s agglomeration municipalities and the city of Winterthur (Regio region) rose even more sharply by 4.3 per cent. The experts at ZKB expect the trend towards rising prices to continue over the next two years due to the ongoing excess demand.
The cantonal bank’s experts have identified “signs of an easing” in asking rents in the first half of 2025. After growth rates of over 10 per cent in some cases in the last two years, they are currently observing an increase of less than 4 per cent. However, even with declining population growth, current construction activity is not sufficient to reduce the excess demand.
However, tenants in the canton of Zurich could benefit more than average compared to the rest of Switzerland from the latest reduction in the base rate in June. Following a fall in the reference interest rate to 1.5 per cent in March, the experts at ZKB expect a further reduction to 1.25 per cent by the end of the year. This means that around 70 per cent of rental households in the canton of Zurich could request a rent reduction. Across Switzerland, this applies to 46 per cent of rental households.