Real Estate - Switzerland | Statista Market Forecast

The Real Estate market market in Switzerland is expected to reach a staggering value of US$6.48tn by 2024.
Among the various segments, Residential Real Estate holds the largest share, with a projected market volume of US$5.38tn in the same year.
This sector is anticipated to exhibit a steady growth rate of 3.58% annually from 2024 to 2029, resulting in a market volume of US$7.72tn by 2029.
In a global context, it is noteworthy that United States is expected to generate the highest value in the Real Estate market market, reaching a staggering US$132.0tn by 2024.
Switzerland's real estate market is experiencing a surge in demand for luxury properties due to its reputation for safety and stability.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Switzerland is experiencing significant growth and development.

Customer preferences: Switzerland is known for its high quality of life and stable economy, making it an attractive destination for both domestic and international buyers. Customers in the Swiss Real Estate market prioritize properties that offer a combination of modern amenities, scenic views, and proximity to urban centers. The demand for luxury properties, especially in prime locations such as Zurich and Geneva, is particularly strong. Additionally, there is a growing interest in sustainable and energy-efficient buildings, reflecting the increasing environmental consciousness among buyers.

Trends in the market: One of the key trends in the Swiss Real Estate market is the rising prices of residential properties. Limited supply and high demand have driven up prices, making it a seller's market. This trend is particularly noticeable in major cities and popular tourist destinations. Another trend is the increasing popularity of real estate investment as an alternative to traditional investment options. Investors are attracted to the stable and secure nature of the Swiss property market, which offers long-term capital appreciation and rental income potential.

Local special circumstances: Switzerland has a unique set of circumstances that influence its Real Estate market. Firstly, the country's strict zoning and building regulations limit new construction, resulting in a scarcity of available properties. This scarcity, combined with the strong demand, contributes to the rising prices. Additionally, Switzerland's political stability and strong legal framework make it an attractive destination for foreign investors, further driving up demand.

Underlying macroeconomic factors: Several macroeconomic factors contribute to the development of the Real Estate market in Switzerland. The country's strong economy, low unemployment rate, and high disposable income levels create a favorable environment for property investment. Additionally, Switzerland's status as a global financial hub attracts high-net-worth individuals and multinational corporations, driving demand for luxury properties. The country's low interest rates also make borrowing more affordable, encouraging buyers to enter the market. In conclusion, the Real Estate market in Switzerland is experiencing growth and development due to customer preferences for high-quality properties, rising prices of residential properties, and the unique local circumstances of limited supply and high demand. The underlying macroeconomic factors, such as a strong economy and low interest rates, further contribute to the market's positive trajectory.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Switzerland

Value

Value Split

Volume

Analyst Opinion

Transaction Value

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Real estate in Japan - statistics & facts

Explore more high-quality data on related topic

Real estate in the Asia-Pacific region - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Contact

Get in touch with us. We are happy to help.

Real Estate - Switzerland

In-Scope

Out-Of-Scope

Related markets:

Commercial Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Real estate in Japan - statistics & facts

Explore more high-quality data on related topic

Real estate in the Asia-Pacific region - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts