On 8 October 2024, Raiffeisen Switzerland published the transaction price index for the third quarter of the current year. Based on the data, the bank summarises the results as follows ‘Price momentum is picking up again, prices for single-family homes rose by 1.6 per cent in the third quarter of 2024, condominiums cost 0.9 per cent more than in the previous quarter, the strongest price increases within a year were recorded for single-family homes in the centres and in urban regions, and prices for condominiums rose most strongly in central Switzerland over the past four quarters.
Take a look at the commentary by Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland, here:
Prices for owner-occupied residential property continued to rise in the third quarter of 2024, Raiffeisen writes in its media release. Single-family homes were 1.6 per cent more expensive than in the previous quarter. Condominiums also became more expensive with an increase of 0.9 per cent. Compared to the third quarter of 2023, single-family homes now cost 3.3 per cent more and condominiums 2.8 per cent more, the bank writes. ‘The price momentum on the Swiss owner-occupied property market has not weakened any further recently, so its low point is probably behind us. The already significantly more favourable financing conditions and the prospect of further interest rate cuts should boost demand for residential property,’ explains Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland.
According to the Raiffeisen Transaction Price Index, single-family homes in Bern and on Lake Geneva are slightly cheaper
Raiffeisen states: ‘In a year-on-year comparison, single-family homes in Central Switzerland (+13.7%) and Southern Switzerland (+6.2%) recorded the strongest price increases. By contrast, house prices fell slightly in the Bern region (-2.1%) and around Lake Geneva (-3.4%). Prices for condominiums rose the most year-on-year in Central Switzerland (+7.9%) and Eastern Switzerland (+6.6%). In southern Switzerland (+1.7%) and Lake Geneva (+0.4%), however, prices for condominiums rose only moderately compared to the previous year.’
Prices for single-family homes in the countryside fall slightly
Raiffeisen has broken down the price trend by municipality type. This shows ‘that house prices in urban communities have risen the most within a year, by 4.6 per cent. In rural communities, house prices have fallen slightly by 0.7 per cent. In the condominium segment, urban municipalities also recorded the strongest price increases (+3.6%). In contrast, prices for condominiums in city centres rose only slightly within a year, with a price increase of 1.4%.’
How is the Raiffeisen Transaction Price Index calculated?
The Raiffeisen Transaction Price Index is published quarterly at the beginning of each new quarter. It measures the price development of owner-occupied residential property in Switzerland based on change of ownership data from Raiffeisen and the Swiss Real Estate Datapool (SRED).
You can download the detailed property study ‘Einkommensquelle Eigenheim’ as a PDF here. Further information on the Swiss property market is available at raiffeisen.ch.
