Residential Real Estate - Switzerland

Switzerland

The Residential Real Estate market market in Switzerland is projected to reach a value of €4.94tn in 2024.
This market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 3.93%, leading to a market volume of €5.99tn by 2029.
When compared globally, China is forecasted to generate the highest value in the Real Estate sector, amounting to €103.6tn in 2024.
Despite its small size, Switzerland has a thriving residential real estate market, with high demand for luxury properties in prime locations.

Key regions: Europe, Brazil, France, Asia, United States

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Analyst Opinion

The Residential Real Estate market in Switzerland is experiencing several trends and developments that are shaping the industry.

Customer preferences: Swiss customers in the Residential Real Estate market are showing a strong preference for properties that offer sustainable and energy-efficient features. This is driven by a growing awareness of environmental issues and a desire to reduce carbon footprints. Additionally, customers are increasingly seeking properties that offer modern amenities and high-quality finishes.

Trends in the market: One notable trend in the Swiss Residential Real Estate market is the increasing demand for urban living. Many people are choosing to live in cities due to the convenience and accessibility they offer. As a result, there is a growing demand for apartments and condominiums in city centers. This trend is also driven by the desire for a vibrant social and cultural scene, as well as the proximity to work and amenities. Another trend in the market is the rising popularity of second homes. Switzerland is known for its picturesque landscapes and outdoor recreational activities, and many people are choosing to invest in second homes in popular tourist destinations such as the Swiss Alps. This trend is driven by the desire for a retreat from urban life and the opportunity to enjoy nature and outdoor activities.

Local special circumstances: Switzerland has a unique housing market due to its high population density and limited land availability. This has led to a scarcity of housing, particularly in urban areas, which has driven up prices. Additionally, the Swiss government has implemented strict regulations on construction and zoning, which further limits the supply of housing. These local circumstances contribute to the high cost of real estate in Switzerland and the strong demand for properties.

Underlying macroeconomic factors: The Swiss Residential Real Estate market is influenced by several macroeconomic factors. Switzerland has a strong and stable economy, which attracts both domestic and international investors. The country also has a low unemployment rate and high purchasing power, which supports demand for real estate. Additionally, Switzerland has a favorable tax system, which incentivizes individuals and corporations to invest in property. These factors contribute to the overall growth and stability of the Residential Real Estate market in Switzerland.

Methodology

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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.