Swiss Real Estate Market Q1 2026: Condominiums up 3.7 percent, single-family homes up 3.5 percent

Prices continue to rise, market shows robust demand

The Swiss residential property market has remained on a growth trajectory at the start of 2026. According to the IAZI price index, transaction prices for condominiums rose by 3.7 percent in the first quarter of 2026 compared with the same quarter of the previous year. Single-family homes became 3.5 percent more expensive. On a quarter-on-quarter basis, the increase was moderate at 0.4 percent for both segments — a sign of continued solid, but not overheated, demand.

These figures confirm the upward trend observed since mid-2024, which began with the end of the strong interest rate hiking cycle. More favourable SARON mortgage rates and renewed buying appetite are contributing to the residential property market gaining momentum.

German-speaking Switzerland sees above-average gains in single-family homes

Prices in German-speaking Switzerland developed particularly dynamically over the course of the year. Single-family homes there gained around 7 percent, significantly more than in French-speaking Switzerland with an increase of around 5 percent. This regional difference reflects, on the one hand, the tighter supply of building land in urban regions of German-speaking Switzerland and, on the other, the persistently high demand from international newcomers in the centres of Zurich, Zug and Basel.

Raiffeisen data for Q1 2026 shows a slightly higher dynamic than the IAZI figures, with a year-on-year increase of 4.9 percent in both segments — different values result depending on methodology and transactions recorded, but the direction is consistent.

New purchases at highest level since the interest rate hike

Another indicator of the improved market situation: the share of new purchases in total mortgage volume recently rose to around 47 percent, the highest level since the strong interest rate hike four years ago. For a long time, refinancing business dominated, as many households were renewing fixed mortgages taken out at low interest rates. The rising share of new purchases indicates that more households are once again actively deciding to buy residential property.

What this means for those seeking financing

Rising real estate prices have a direct impact on financing planning. Anyone buying a 100-square-metre condominium in an agglomeration today needs more equity than two years ago. The minimum requirement of 20 percent equity, of which at least 10 percent must come from personal savings without pension fund withdrawals, remains unchanged — but the absolute amount required rises with the purchase price.

At the same time, the affordability calculation must be kept in mind. The imputed interest rate of 5 percent, which banks use for the affordability assessment, remains the decisive benchmark even with low SARON rates. Anyone wishing to buy in a rising price environment should check their financing capacity at an early stage.

For full-year 2026, Wüest Partner expects a price increase of 2.8 percent for condominiums and 3.1 percent for single-family homes — more moderate growth than in 2025, but a continuation of the upward trend.