Stable interest rates, tight supply – and new opportunities.

The Swiss National Bank is keeping its key interest rate at zero per cent, the supply of housing remains tight, and the regulatory burden in the construction sector continues to grow. The current environment in the Swiss property market combines favourable financing conditions with a structurally tight supply – a combination that keeps exclusive residential property in Switzerland attractive in the medium to long term, even as the first signs of a shift in interest rates appear on the horizon.

For buyers of exclusive residential property, this results in a remarkably stable yet selective environment – with attractive financing conditions but, on the other hand, a structurally limited supply.

The interest rate landscape: calm before the next move

At its meeting on 18 June 2026, the SNB decided to keep the key interest rate at 0 per cent, following a series of interest rate cuts that began in 2024 and concluded in mid-2025. The key factors underpinning the continued expansionary monetary policy are the low level of inflation and a Swiss economy that is not expected to realise its full growth potential in 2026. You can read more about the implications of this decision for mortgage rates and the future trajectory of the Swiss National Bank’s key interest rate on the ‘Interest Rate Forecast and Trends’ web pages of UBS and Zürcher Kantonalbank.

For homebuyers, this means that financing conditions remain exceptionally favourable. The markets are already anticipating an SNB interest rate rise, which is why both government bond yields and mortgage rates are likely to remain at low levels for the time being – this also applies to SARON mortgages for the time being, although a certain rise in interest rates appears possible next year.