The cost of owning a home in Switzerland increased again during the third quarter of 2025. This rise was particularly noticeable for single-family homes. The Bern region experienced a significant jump in prices, making homeownership more expensive for residents. This trend reflects a strong demand for housing across the country.
Key Takeaways
- Swiss homeownership costs increased in Q3 2025.
- Single-family home prices rose by 1.8% from the previous quarter.
- Year-over-year, single-family homes are 5.4% more expensive.
- The Bern region saw a 7.5% price increase for single-family homes.
- Low interest rates continue to fuel high demand for properties.
Overall Increase in Homeownership Costs
Data from Raiffeisen Switzerland's transaction price index, published on Tuesday, shows a clear upward trend. From July to September 2025, self-occupied residential property became more expensive. This marks a continued pattern observed throughout the year.
Specifically, prices for single-family homes saw an increase of 1.8 percent compared to the previous quarter. Apartment ownership also rose, though more modestly, by 0.1 percent during the same period. These figures highlight the ongoing pressure on the Swiss housing market.
Fact Check
- Quarterly increase (Q3 2025): Single-family homes +1.8%, Apartment ownership +0.1%.
- Year-over-year increase: Single-family homes +5.4%, Apartment ownership +4.0%.
Looking at the bigger picture, single-family homes are now 5.4 percent more expensive than they were a year ago. Apartment ownership prices have also climbed, showing a 4.0 percent increase over the last year. These year-over-year statistics confirm a sustained period of price growth in the real estate sector.
"The price momentum for self-occupied residential property has not accelerated recently, but it remains very strong," explained Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland. This statement underscores the persistent strength of the housing market despite no further acceleration in growth.
Regional Price Differences Across Switzerland
Price increases for single-family homes varied significantly across different regions of Switzerland. The Bern region experienced one of the most substantial jumps. Prices there rose by 7.5 percent compared to the previous year, indicating strong local demand.
Similarly, the South Switzerland region also saw a considerable increase in single-family home prices, with a rise of 7.4 percent. These two regions led the country in terms of price growth for this property type. This regional disparity is a key feature of the current market.
Regional Context
Switzerland's housing market is diverse. Economic factors, population growth, and local policies can create different price trends in various cantons and regions. The Bern region, as a major administrative and economic hub, often sees consistent demand.
Varied Growth in Other Regions
Other parts of Switzerland experienced less intense price growth for single-family homes. West Switzerland recorded a 3.9 percent increase, while Northwest Switzerland saw the smallest rise at 1.8 percent. Zurich, a major economic center, reported a 4.5 percent increase in single-family home prices.
For apartment ownership, the highest annual price increases were observed in Central Switzerland (+5.3 percent) and Eastern Switzerland (+4.1 percent). Zurich's apartment prices went up by 2.4 percent. Interestingly, Northwest Switzerland went against the general trend, with apartment prices decreasing by 0.2 percent.
Regional Single-Family Home Price Changes (Year-over-Year)
- Bern region: +7.5 percent
- South Switzerland: +7.4 percent
- Zurich: +4.5 percent
- West Switzerland: +3.9 percent
- Northwest Switzerland: +1.8 percent
Buyers in tourist areas also faced higher costs. In these communities, house prices increased by 6.6 percent over one year. Apartment prices in tourist destinations rose by 4.4 percent. This suggests that recreational properties are also in high demand.
In urban centers, house prices increased by 3.8 percent, which was the smallest rise for houses. For apartments, the smallest increase was in rural areas, at 1.1 percent. This data indicates that price dynamics differ based on location type, with urban and tourist areas generally experiencing stronger growth.
No End in Sight for Rising Property Prices
The upward spiral in the homeownership market shows no signs of slowing down. Over the past five years, prices for single-family homes across Switzerland have increased by a significant 6.2 percent. Apartment ownership prices have also risen by 5.2 percent during the same five-year period.
This sustained price growth is largely attributed to persistently low interest rates. Low interest rates make borrowing money cheaper, reducing the overall cost of a mortgage. This makes homeownership more attractive compared to renting.
Interest Rate Impact
Low interest rates reduce monthly mortgage payments, making homeownership financially more accessible for many. This increased affordability stimulates demand, which in turn drives up property prices. The Swiss National Bank's monetary policy plays a critical role here.
Chief Economist Hasenmaile stated that "owning your own four walls results in much lower housing costs than a rental apartment." This financial advantage continues to fuel high demand for residential property, keeping the market competitive and prices elevated.
The Raiffeisen Transaction Price Index is published quarterly at the start of each new quarter. It tracks price changes for self-occupied residential property in Switzerland. The index relies on property transfer data from Raiffeisen and the Swiss Real Estate Datapool (SRED). These sources provide a comprehensive overview of market activity.
The ongoing strength in the Swiss housing market, particularly in regions like Bern, highlights the economic stability and desirability of the country. However, it also presents challenges for new buyers trying to enter the market. The interplay of demand, supply, and interest rates will continue to shape property values in the coming quarters.