Real Estate - Switzerland

Switzerland

The Real Estate market market in Switzerland is expected to reach a staggering value of €5.94tn by 2024.
Among the various segments, Residential Real Estate holds the largest share, with a projected market volume of €4.94tn in the same year.
This sector is anticipated to exhibit a steady growth rate of 3.43% annually from 2024 to 2029, resulting in a market volume of €7.03tn 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 €121.2tn by 2024.
Switzerland's real estate market is experiencing a surge in demand for luxury properties due to its reputation for safety and stability.

Key regions: United States, China, Japan, Germany, United Kingdom

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Analyst Opinion

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.

Methodology

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.