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Real Estate Market 2025: Opportunities and Challenges

House Haus Real Estate Mortgage Hypothek

Real Estate Market 2025: Opportunities and Challenges

Real Estate Market 2025: Opportunities and Challenges 2560 1600 HYPOHAUS - Swiss Mortgage Broker Experts

The Swiss real estate market will remain dynamic in 2025: Lower key interest rates, rising property prices, and ongoing challenges in housing construction will shape developments. While falling mortgage rates make homeownership more attractive again, access remains challenging due to stricter financing requirements and limited supply. Here’s a concise overview of the key trends and forecasts for the coming year.

Buying Becomes More Attractive

Declining mortgage rates are making homeownership more financially appealing. Thanks to lower financing costs, owning a home is increasingly cost-effective compared to renting. However, stricter equity requirements under Basel III and limited availability continue to hinder access to the real estate market. You can find our blog post on Basel III here.

Falling Rents – But Not Everywhere

With the Swiss National Bank’s recent rate cut, the reference interest rate will drop in March, allowing tenants in existing leases to request rent reductions. However, rents for new leases continue to rise, especially in cities where demand exceeds the limited supply.

Construction Activity Remains Sluggish

Housing construction progresses slowly, although institutional investors may increasingly pursue new projects due to lower interest rates. Experts expect additional housing relief from new developments only in the coming years. At the same time, older properties requiring renovations are likely to enter the market in greater numbers.

Ongoing Increase in Property Prices

Despite cooled demand compared to the boom years, prices for single-family homes and condominiums continue to rise. Experts predict an increase of 4-5% in 2025, driven by favorable financing options and renewed buyer confidence. A detailed assessment of the Swiss real estate market can be found here.

Fixed-Rate vs. SARON: Flexibility or Stability?

The choice between a fixed-rate mortgage and flexible models like SARON remains critical. Developments in the real estate market offer diverse opportunities but also require well-informed decisions. HYPOHAUS is your trusted partner for financing. Secure the best interest rates and turn your dream of homeownership into reality.

Contact us today to learn how we can support you on the path to your dream home. An overview of our services can be found here.