Swiss owner-occupied housing prices accelerated in the third quarter of 2026, according to a report sent to Helvetica Times by Raiffeisen.
When it comes to Switzerland’s Transaction Price, Index Single-family homes rose 2.0% quarter on quarter and condominiums 1.7%, taking annual increases to 3.6% and 5.9% respectively.
Raiffeisen chief economist Fredy Hasenmaile said the prospect of an end to the Swiss National Bank’s zero-interest-rate policy has pushed fixed-rate mortgage rates higher in recent months. But he argued that the moderate rise is not enough to reverse price momentum because supply remains too tight.
Zurich and western Switzerland recorded the strongest annual increases in single-family home prices, at 4.8% and 4.6%, respectively.
Southern Switzerland rose by 3.3%, and eastern Switzerland by 3.5%.
For condominiums, southern Switzerland led with a 7.4% annual increase. The Lake Geneva region saw the weakest growth, at just 0.4%, despite its reputation as one of the country’s most expensive markets.
The pattern differs by property type. Houses in central municipalities rose 5.2% year on year, the strongest of any municipality type, while urban municipalities saw the smallest increase at 4.1%. Condominiums in tourist resorts rose 7.9%, while central areas saw the weakest condominium growth at 1.6%.
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Mortgage Rates Are Rising, But Not Enough
The Swiss National Bank kept its policy rate at 0% at its September 24 assessment, but fixed-rate mortgages do not track the policy rate directly. They follow capital-market swap rates, which have edged higher.
The cheapest 10-year fixed-rate mortgage stood at 1.64% on October 12, with an average across 29 providers of 2.05%. The 10-year average had risen 15 basis points since mid-July.
That increase has not been enough to cool demand. IAZI’s separate transaction-based index found overall residential prices rose 0.8% in the third quarter, with condominiums up 0.8% and houses 0.7%. Its annual figure was 3.9%.
Swiss Home Prices: Vacancy Rate Fell For The Sixth Consecutive Time
The vacancy rate fell for the sixth consecutive time to 0.9% as of June 1, according to IAZI. It expects housing demand to grow more slowly in 2026 due to a slight decline in immigration, but says limited construction activity will keep supply tight.
Wüest Partner reports that transaction prices for both owner-occupied apartments and single-family homes rose about 4.3% year on year in the second quarter, above its April forecasts. It expects prices to continue rising in 2026, though at a slower pace, with condominiums up around 2.8% and houses around 3.1%.
The structural shortage is not just about too few new buildings. Wüest Partner notes that a growing share of multi-family construction involves replacement new-builds, where existing flats are demolished first, limiting the net increase in supply.
For buyers, the combination of rising prices and slightly higher mortgage rates is squeezing affordability. IAZI notes that high purchase prices are increasingly limiting the range of properties that potential buyers can finance, even though moderate financing costs continue to support demand.
Real estate expert Frank Meierhofer rates the housing market situation at “6.5 to 7” on a scale where 10 means precarious. He sees Zurich and its metropolitan area, Zug, Baar, Lucerne, Schwyz and Geneva as particularly challenging, though more affordable options remain in the Zurich Oberland.
For sellers, the environment remains favourable. Limited supply, sustained demand and low policy rates continue to support prices, even as fixed-rate mortgages rise from historic lows.
The key variable going forward is whether mortgage rates rise further. If capital-market rates continue to climb, affordability could deteriorate faster than supply can respond, potentially slowing transaction volumes even if prices hold.
For now, the data suggest the market is still in an upswing. Raiffeisen’s index shows acceleration, not deceleration, and other transaction-based measures point in the same direction.
