by After increasing for three quarters in a row, residential property prices in Switzerland fell during the first quarter of 2024, according to data from the Federal Statistical Office (FSO). Photo by Louis on Pexels.comThe Swiss residential property price index (IMPI) fell by 1.0% in the period from January to March 2024. At the same time prices remained 1.5% higher than they were a year earlier. The prices of both apartments (-1.3%) and single-family homes (-0.7%) contributed to the decline in the overall index compared to the previous quarter. Prices for single-family homes fell particularly significantly in large urban centres (-2.6%). In contrast, prices rose the most in smaller urban areas near large cities (+4.6%). The sharpest apartment price decline occurred in semi urban
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After increasing for three quarters in a row, residential property prices in Switzerland fell during the first quarter of 2024, according to data from the Federal Statistical Office (FSO).
The Swiss residential property price index (IMPI) fell by 1.0% in the period from January to March 2024. At the same time prices remained 1.5% higher than they were a year earlier.
The prices of both apartments (-1.3%) and single-family homes (-0.7%) contributed to the decline in the overall index compared to the previous quarter. Prices for single-family homes fell particularly significantly in large urban centres (-2.6%). In contrast, prices rose the most in smaller urban areas near large cities (+4.6%). The sharpest apartment price decline occurred in semi urban regions associated with large cities (-4.2%) and the largest increase in mid-sized cities (+0.5%).
A big challenge for many prospective buyers in Switzerland is generating enough income to qualify for a mortgage. An analysis published late last year by SRF estimated that a household hoping to buy a quality 140 m2 single-family home in Zurich would need an income of CHF 500,000 to meet standard mortgage requirements. Geneva would be similar. In Lausanne, Basel and Bern, more than CHF 300,000 would be needed. However, a couple with median Swiss incomes (CHF 80,000) would only have CHF 180,000, leaving a large gap between earnings and the minimum required for a mortgage.
The IMPI index is calculated from an average of around 7,000 transactions from all regions of Switzerland. The FSO obtains this data from the 25 largest mortgage institutions in Switzerland, which cover a large percentage of property transactions financed with a mortgage.
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