PwC-Immospektive

May 2026

The SNB continues to hold the policy rate at 0.0%. Despite very low inflation and moderate economic growth a return to negative interest rates remains unlikely for the time being, meaning that the monetary policy environment remains stable and generally supportive for the property market. At the same time, external risks have increased. A further appreciation of the Swiss franc, geopolitical tensions and a prolonged blockade of the Strait of Hormuz could have a negative impact on the global economy and therefore also on the Swiss economy. The rental housing market stabilised in the first quarter of 2026 following the decline in the previous quarter, though underlying pressures remain. Although the slowdown in immigration is curbing short-term rental growth, there remains a supply shortage in the major cities. Additionally, the Zurich housing initiatives of 14 June 2026, in particular the Housing Protection Initiative, increase the regulatory risks for investments, renovations and the future expansion of supply. In the office market, the stabilisation has lost momentum again, rents for new tenancies have fallen and the trend remains highly differentiated by region. The yield performance reflects this segmentation. Multi-family units continue to generate robust, broadly positive total annual returns, while office properties remain more volatile and subject to an increased risk of changes in value outside of the strongest locations. Residential property prices are rising again, driven primarily by owner-occupied housing. The low interest-rate environment, expectations of rising prices and the abolition of the imputed rental value are fuelling demand, while the implementation of the reform at cantonal level continues to create uncertainty.

The market information on which Immospektive is based can be found in FPRE's real estate meta-analysis. References to FPRE graphics are marked with “[1]” etc. in our text. 

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