Immospektive August 2026

Sebastian Zollinger

Director, Head Real Estate Advisory, PwC Switzerland

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The Swiss National Bank is maintaining its policy rate at 0.0%. The low interest rate environment remains broadly supportive of the real estate market, while geopolitical tensions, trade policy uncertainty and rising long-term capital market interest rates represent the greatest risks to the economic outlook. In the rental housing market, the sideways movement observed at the beginning of the year has given way to a broad-based upward trend. Despite weaker immigration, the structural supply shortage persists, while the rejection of Zurich’s Housing Protection Initiative has increased planning and investment certainty for refurbishments and replacement developments. The office market continues to be characterised by declining rents for new leases and significant regional differences in demand, while the planned tightening of the Lex Koller is creating additional uncertainty on the investment side. Yield developments confirm the differing market conditions: multi-family properties continue to generate stable and broadly based total returns, whereas office properties show considerably greater regional variation. In the owner-occupied housing market, prices continued to rise, supported by low financing costs, limited supply and positive price expectations.

The information on market developments underlying the Immospektive can be found in FPRE’s Real Estate Meta-Analysis. References to FPRE charts are indicated in our text as “[1]”, etc.

Monetary policy in focus: zero interest rate environment persists, eco-nomic risks weigh on the outlook

At its monetary policy assessment of 18 June 2026, the Swiss National Bank left the SNB policy rate unchanged at 0.0%. It has therefore remained at zero since the last interest rate cut in June 2025. At the same time, the SNB remains prepared to intervene in the foreign exchange market if necessary in order to counter a rapid and excessive appreciation of the Swiss franc. Inflation initially rose from 0.1% in February to 0.6% in May following the March assessment. This increase was mainly attributable to higher prices for petroleum products, while other goods and services contributed only marginally to the rise in inflation.¹ In July, annual inflation declined again to 0.4%, indicating that overall price pressures remain moderate.² According to the conditional inflation forecast, inflation is expected to increase slightly over the coming quarters before easing again somewhat in the first half of 2027.³ On an annual average basis, the SNB expects inflation of 0.6% in 2026, 0.6% in 2027 and 0.7% in 2028 [9]. The forecast therefore remains within the range consistent with price stability throughout the entire forecast horizon.

Global inflation expectations remain elevated, and markets have adjusted to a somewhat more restrictive monetary policy stance abroad. In Switzerland, the yield curve for Confederation bonds shifted slightly upwards, while the Swiss franc weakened somewhat against the euro and the US dollar. As a result, monetary conditions eased marginally despite the unchanged policy rate.⁴ The current environment suggests that the SNB is likely to maintain its zero interest rate policy at its upcoming monetary policy assessments.

KOF paints a subdued and uneven picture of the Swiss real economy across sectors. Private consumption stagnated in the first quarter of 2026, while a higher propensity to save and the weak labour market are likely to continue to constrain its recovery. Equipment investment also remains weak due to a deterioration in earnings prospects and low capacity utilisation. The export industry continues to show a two-speed development: while the pharmaceutical and chemical industries are providing positive impetus, the watchmaking and machinery industries remain under pressure.

Against this backdrop, KOF has lowered its forecast for sports-event-adjusted GDP growth to 0.8% for 2026 and 1.5% for 2027. Construction investment, by contrast, is expected to continue to develop moderately, while the institute does not anticipate a broader recovery in investment activity until next year. Additional growth impulses could come from European infrastructure and defence programmes as well as productivity gains from the use of artificial intelligence.⁵

Since the first quarter of 2026, sentiment in financial markets has improved. Hopes for a reopening of the Strait of Hormuz have led to a decline in energy prices and market volatility. Strong US economic data and continued optimism surrounding artificial intelligence have also contributed to higher long-term US interest rates. Overall, however, the reaction of international capital markets to the conflict in the Middle East has remained subdued. A renewed escalation in the Middle East could cause energy prices, inflation and long-term interest rates to rise again and, in an adverse scenario, trigger a period of weak growth combined with elevated inflation.⁶

Overall, the current data continue to support a continuation of the zero interest rate policy. However, the outlook remains vulnerable to a renewed escalation in the Middle East, prolonged disruptions to energy supplies, changes in US tariff policy, high levels of global government debt and corrections in financial markets. For the Swiss real estate market, the low interest rate environment remains broadly supportive. It keeps short-term financing costs low, enhances the relative attractiveness of real estate investments and supports demand and market activity. Further monetary policy stimulus is not expected for the time being. At the same time, developments since March show that long-term capital market interest rates can rise even if the SNB policy rate remains unchanged. Higher long-term interest rates or risk premiums would affect refinancing costs and discount rates and could put pressure particularly on highly valued and capital-market-sensitive real estate investments.

_{¹ Schweizerische Nationalbank, Geldpolitische Lagebeurteilung vom 18. Juni 2026.

² Bundesamt für Statistik, Landesindex der Konsumentenpreise im Juli 2026, 3. August 2026.

³ Schweizerische Nationalbank, Geldpolitische Lagebeurteilung vom 18. Juni 2026.

⁴ Schweizerische Nationalbank, Geldpolitische Lagebeurteilung Juni 2026: Zusammenfassung der Diskussion, 16. Juli 2026.

⁵ KOF Institut, KOF Konjunkturprognose Sommer 2026: Erdölpreisschock bremst Schweizer Wirtschaft, 17. Juni 2026.

⁶ Schweizerische Nationalbank, Geldpolitische Lagebeurteilung Juni 2026: Zusammenfassung der Diskussion, 16. Juli 2026.}

Rental housing market: broad-based rise in asking rents, supply con-straints shift demand

The Swiss rental housing market regained significant momentum in the second quarter of 2026. Rents for new tenancies rose by 2.4% quarter-on-quarter across Switzerland and were 2.0% above the previous year’s level [23]. The subdued development observed at the beginning of the year therefore proved temporary. The increase was broad-based across all regions, indicating that excess demand persists despite the recently weaker demographic impetus.⁷

Immigration remains an important driver of demand, although net immigration of 18,800 people in the first quarter of 2026 was significantly lower than in the corresponding quarters of previous years [10]. The fact that rents for new tenancies have nevertheless resumed stronger growth suggests that rental market dynamics are increasingly being driven by limited supply. The Federal Housing Office also expects the vacancy rate, which fell to 1.0% in 2025, to decline further this year. A broad-based easing of the rental housing market is therefore not in sight.⁸

On the supply side, there are increasing signs of a recovery. BAK Economics expects residential construction to grow by 3.8% in 2026 and 2.0% in 2027 [14]. The construction index of the Swiss Contractors’ Association rose by 3.2% year-on-year in building construction and by 4.3% in residential construction in the second quarter [15]. At the same time, production costs for multi-family properties increased by 1.0% quarter-on-quarter and 1.1% year-on-year [16]. Higher construction activity improves the medium-term supply outlook, but given long planning and implementation periods, the existing demand overhang is likely to be reduced only gradually.

The rejection of Zurich’s Housing Protection Initiative by voters on 14 June 2026 is also significant. The initiative would have allowed municipalities with tight housing markets to impose temporary rent restrictions following replacement developments, conversions and renovations, as well as restrictions on the conversion of rental apartments into condominiums, thereby potentially constraining construction activity in the Zurich area over the longer term. From a real estate perspective, the decision reduces regulatory risk and increases planning and investment certainty for refurbishments, replacement developments and densification projects. At the same time, voters approved the more moderate counterproposal, which aims to avoid terminating existing tenancies where possible in larger construction projects and to provide affected tenants with better protection through information and support requirements.⁹

In the second quarter of 2026, rents for new tenancies increased significantly in both the existing and new-build segments. For existing apartments, rents rose by 2.2% quarter-on-quarter and by 2.7% year-on-year. Rents for new-build apartments increased slightly more strongly, by 2.6% compared with the previous quarter, but were only 1.4% above the previous year’s level [23]. The stronger short-term development in the new-build segment should therefore be seen primarily as a rebound from the weak development at the beginning of the year. Over a longer period, rental pressure remains more pronounced in the existing housing stock.

The cantonal analysis confirms that the increase in rents for existing apartments is broad-based. Rents for new tenancies were above the previous quarter’s level in all cantons. The strongest increases were recorded in Glarus and Neuchâtel, at 2.4% each, followed by Jura at 2.3%, and Lucerne and Appenzell Innerrhoden at 2.2% each. Quarterly growth was weakest in Zurich and Geneva, at 1.0% each, and in Basel-Stadt at 1.2%.

However, there are considerable differences on a year-on-year basis. Rents for existing apartments rose particularly strongly in Schaffhausen, by 8.3%, Zug by 7.5%, Nidwalden by 5.0% and St. Gallen by 4.9%. By contrast, they remained almost unchanged in Graubünden, with an increase of just 0.1%; annual growth was also comparatively subdued in Geneva at 1.0% and Basel-Stadt at 1.4%.¹⁰

Rents for new tenancies in new-build apartments also increased quarter-on-quarter in all cantons. Glarus recorded the strongest increase at 2.7%, followed by Schwyz and Appenzell Innerrhoden at 2.4% each, and Basel-Landschaft and Neuchâtel at 2.3% each. Zurich posted the smallest quarterly increase at 1.0%, followed by Appenzell Ausserrhoden and Geneva at 1.1% each. On a year-on-year basis, Zug and Schaffhausen led the ranking, with increases of 5.7% and 5.2%, respectively. New-build rents also rose markedly in Solothurn, by 3.7%, and Glarus, by 3.5%. Graubünden was the only canton to record a year-on-year decline, at -1.4%, while values in Basel-Stadt and Jura remained virtually unchanged at 0.1% each.¹¹

The comparatively moderate rental growth in the canton of Zurich should not be interpreted as a structural easing of the market. Rents for new tenancies were 2.0% above the previous year’s level for existing apartments and 1.2% higher for new-build apartments. At the same time, FPRE points to insufficient development reserves in the Greater Zurich area and an increasing shift in demand towards the agglomeration. In addition to construction activity, the availability of land and spatial planning conditions are increasingly determining where new housing can be developed. FPRE’s prospective model shows that, under current spatial planning practices, additional housing demand in many economically dynamic areas cannot be fully accommodated within existing building zones. This effect is particularly pronounced in Geneva and Zurich. As a result, demand pressure is increasingly spreading to well-connected municipalities in the agglomerations, while lengthy and risk-prone densification procedures make it more difficult to expand supply rapidly.¹²

These supply constraints are also increasingly shaping the political debate over how Switzerland should respond to further population growth and the resulting demand for housing. Against this backdrop, the popular initiative “No 10 Million Switzerland! (Sustainability Initiative)” was put to a vote on 14 June 2026 and rejected. The initiative would have required Switzerland’s permanent resident population to remain below 10 million before 2050. Once the population exceeded 9.5 million, the Federal Council and Parliament would already have been required to take measures.¹³ Future housing demand will therefore continue to depend primarily on actual immigration as well as labour market and economic developments. At the same time, the vote highlights the political pressure to accompany population growth with sufficient housing supply and adequate infrastructure.

Overall, the easing in rents for new tenancies observed at the beginning of the year gave way to a broad-based upward trend in the second quarter. Higher construction activity is likely to expand supply over the medium term, but is unlikely to be sufficient to eliminate the structural shortage in the near term. Rising production costs, limited reserves of building land and complex densification procedures are further constraining the supply response. Rents for new tenancies are therefore expected to continue rising in the coming quarters, although the pace of growth is likely to vary significantly depending on location, market segment and local development potential.

Rental housing market – development Q2 2026

new buildings
old buildings

^{Source: FPRE, Marktmieten- und Baulandindizes von Renditeimmobilien Schweiz, 2. Quartal 2026}

_{⁷ FPRE, Marktmieten- und Baulandindizes von Renditeimmobilien Schweiz, 2. Quartal 2026.

⁸ Bundesamt für Wohnungswesen, Der Wohnungsmarkt auf einen Blick 2/2026.

⁹ NZZ, «Kantonale Wohnvorlagen: Stadtteile von Winterthur und Zürich sagen Ja, die SP gesteht Nein zur Wohnschutzinitiative ein», 14. Juni 2026.

¹⁰ FPRE, Marktmieten- und Baulandindizes von Renditeimmobilien Schweiz, 2. Quartal 2026.

¹¹ FPRE, Marktmieten- und Baulandindizes von Renditeimmobilien Schweiz, 2. Quartal 2026.

¹² FPRE, FPREview Q2 2026: Raumentwicklung zwischen Anspruch und Realitä.

¹³ NZZ, Die 10-Millionen-Initiative ist gescheitert, der Kampf um die Zuwanderung geht nahtlos weiter, 15. Juni 2026.}

Office market: rents for new leases remain under pressure, Lex Koller revision creates additional uncertainty

Following the sharp decline at the beginning of the year, the downward trend in Swiss office rents for new leases continued in the second quarter of 2026, albeit at a slower pace. Contract rents for new leases fell by 1.1% quarter-on-quarter across Switzerland. Compared with the same quarter of the previous year, however, they were slightly higher, by 0.3% [35]. Overall, the office market therefore continues to move sideways, although the stable development at the national level masks considerable regional differences. The pattern points to selective demand that remains sensitive to changes in the economic environment.

The economic backdrop is providing only limited support for demand in the office market. Forecasts for 2026 point on average to real GDP growth of 0.8% and an unemployment rate of 3.1% [6, 7]. The development of job vacancies also presents a mixed picture: while the job vacancy index in real estate activities increased by 7.5% year-on-year in the first quarter, it declined by 15.6% in financial and insurance services and by 12.5% in information and technology services [8]. These office-intensive sectors are therefore not yet providing broad-based demand impulses.

The planned revision of the Lex Koller passed another procedural milestone with the conclusion of the consultation process on 15 July 2026. At the end of July, the Federal Office of Justice published the statements submitted as part of the consultation. These reveal significant differences between political actors, authorities and the business community. While some political parties and cities broadly support the proposal, other parties and numerous capital market participants oppose, in particular, the restrictions on exchange-traded indirect real estate investments. SIX has warned of lower market liquidity, less efficient price formation and higher capital costs. For the office real estate market, the proposed authorisation requirement for the acquisition of commercial properties purely as an investment therefore remains a regulatory risk. Whether, and in what form, it will ultimately be implemented remains uncertain.¹⁴

The cantonal analysis shows that rents for new office leases declined in most markets in the second quarter of 2026. Of the 18 cantons with available quarterly data, eleven recorded a decrease. The strongest corrections were seen in Bern at -3.6%, Zurich and Aargau at -3.3% each, and Basel-Stadt at -2.8%. Rents for new leases also fell markedly in Neuchâtel (-2.4%), Zug (-2.3%) and Thurgau (-1.9%). Positive developments, by contrast, were concentrated in only a few cantons: Fribourg recorded the strongest increase at +2.2%, followed by Ticino at +1.6%, and Solothurn and Vaud at +0.9% each. Rental growth for new leases was more moderate in Schwyz (+0.6%), St. Gallen and Geneva (+0.4% each).¹⁵

The year-on-year picture also remains highly divergent. The strongest increases between the second quarter of 2025 and the second quarter of 2026 were recorded in Solothurn (+10.6%), Ticino (+7.4%) and Vaud (+5.3%). Rents for new leases were also significantly above the previous year’s level in Zug (+4.6%), Fribourg and Neuchâtel (+3.9% each), and Geneva (+3.3%). By contrast, Graubünden (-10.5%) and Schaffhausen (-10.1%) recorded double-digit declines. Rents were also well below the previous year’s level in Lucerne (-6.2%), Basel-Stadt (-5.6%), Zurich (-3.9%) and Bern (-3.7%). Overall, the data underline that the Swiss office market continues to develop very unevenly.¹⁶

Demand for commercial space therefore depends primarily on regional employment trends, the local industry mix and sector-specific space requirements per employee. Unlike in the residential market, geographical shifts in demand play only a secondary role for commercial space, as FPRE reports sufficient space reserves in most municipalities. Rental developments are therefore driven less by a general structural shortage than by the specific level of demand at each location.¹⁷

Overall, the weakness in rents for new leases continued in the second quarter, although there are no signs of a broad-based downturn. Below-average economic growth, subdued corporate investment and weak employment dynamics in several office-intensive sectors are limiting the potential for a near-term recovery. At the same time, positive developments in the Lake Geneva region and in selected cantons show that markets with strong demand can still achieve rental growth. The coming quarters are therefore likely to be characterised by broadly sideways but highly differentiated developments. Implementation of the proposed tightening of the Lex Koller would place additional pressure on the investment side, but is unlikely to have an immediate impact on occupier demand for office space.

Office space market – development Q2 2026

^{Source: FPRE, Marktmieten- und Baulandindizes von Renditeimmobilien Schweiz, 2. Quartal 2026}

_{¹⁴ Bundesamt für Justiz, Stellungsnahmen des Vernehmlassungsverfahrens (der Kantone, politischer Parteien, Organisationen und Private), 27. Juli 2026.

¹⁵FPRE, Marktindizes für Renditeimmobilien, 2. Quartal 2026.

¹⁶ FPRE, Marktindizes für Renditeimmobilien, 2. Quartal 2026.

¹⁷ FPRE, FPREview Q2 2026: Raumentwicklung zwischen Anspruch und Realität.}

Yield developments: residential investments remain robust, office prop-erties show pronounced regional variations

The rolling annual total return on multi-family properties remained positive in all cantons in the second quarter of 2026. Across Switzerland, it amounted to around 8.4%, down from 12.2% in 2025. This development reflects a broad-based normalisation following the strong appreciation seen in the previous year. With the exception of Glarus, the provisional returns for 2026 were below the respective prior-year levels in all cantons. Current income continues to make a stable contribution to returns, while capital growth remains positive but is lower than in 2025 [51]. The residential segment continues to be supported by excess demand in the rental housing market and the ongoing increase in market values of multi-family properties. In the second quarter, these were 6.9% above the previous year’s level and 3.5% above the previous quarter.¹⁸

The return profile for office properties is considerably more heterogeneous. The rolling annual total return in 2026 stood at around 4.4%, below the previous year’s 6.0%. Cantonal total returns ranged from -5.8% to +17.0%. While current rental income continues to act as a stabilising factor, overall performance is primarily driven by changes in value. Across Switzerland, the market values of office properties were 4.2% above the previous year’s level and 0.5% above the previous quarter. At the same time, rents for new leases declined quarter-on-quarter. The combination of rising market values and falling rents for new leases underlines that returns are currently highly dependent on location, property quality, vacancy risk and the underlying valuation assumptions.¹⁹

The cantonal analysis of multi-family properties shows broadly based positive returns. Glarus led the ranking with a rolling annual total return of 12.3%, followed by Solothurn at 9.8%, Obwalden at 9.7%, and Nidwalden, Aargau and Valais at 9.6% each. Thurgau and Neuchâtel, both at 9.5%, Schaffhausen at 9.4% and St. Gallen at 9.3% also achieved above-average returns. The lowest, though still clearly positive, returns were recorded in Basel-Stadt at 6.0%, Jura at 6.6%, Graubünden at 7.1%, Uri at 7.5% and Zurich at 7.7%. The comparatively narrow dispersion and absence of negative results underline the continued stability of the residential segment.²⁰

As of 15 July 2026, the average minimum discount rate for an as-new multi-family property in a prime Zurich location remained unchanged at 1.86%. The estimates of selected valuation firms ranged from 1.75% to 2.00%. None of the institutions adjusted its assessment compared with the previous month [32]. The stable and historically low discount-rate environment continues to support valuations, although it also limits the scope for further yield-driven appreciation should capital market rates or risk premiums rise at a later stage.

For office properties, Solothurn recorded the highest return in 2026 at 17.0%, followed by Ticino at 13.9% and Zug at 12.6%. Thurgau at 10.4%, Vaud at 9.2%, Neuchâtel at 8.8%, Fribourg at 8.3% and Geneva at 7.6% also achieved high rolling annual total returns. Negative results were recorded in Schaffhausen at -5.8%, Graubünden at -3.4% and Lucerne at -0.3%. Returns in Basel-Stadt at 0.8%, Zurich at 1.4%, Valais at 2.4% and Bern at 3.1% also remained well below the cantonal average.²⁰

The volatility becomes particularly apparent when compared with the previous year’s figures. In Ticino, the total return improved from -8.6% in 2025 to 13.9% in 2026. Solothurn also recorded a sharp increase from -0.9% to 17.0%, Zug from -2.4% to 12.6% and Fribourg from -4.7% to 8.3%. In other cantons, the trend moved in the opposite direction: in Valais, the return fell from 24.0% to 2.4%, in Schaffhausen from 7.6% to -5.8% and in Graubünden from 5.2% to -3.4%. Returns in St. Gallen, Thurgau, Geneva and Neuchâtel were also significantly below the previous year’s levels. These pronounced shifts show that high returns in the office segment do not necessarily indicate a sustained improvement in income performance, but are often driven by short-term changes in value and regional base effects.²¹

Overall, multi-family properties remain the more stable of the two segments. Current income is broadly supported, capital growth remains positive and all cantons report positive annual total returns. Office properties may offer substantial return potential in selected markets, but are more strongly dependent on regional employment trends, available space, letting prospects and valuation fluctuations. The low interest rate and discount-rate environment continues to support both segments. However, the wide range of outcomes in the office market confirms that property selection and location quality remain decisive.

^{Source: FPRE, Marktindizes für Renditeimmobilien, 2. Quartal 2026}

_{¹⁸ FPRE, Marktindizes für Renditeimmobilien, 2. Quartal 2026.

¹⁹ FPRE, Marktindizes für Renditeimmobilien, 2. Quartal 2026.

²⁰ FPRE, Marktindizes für Renditeimmobilien, 2. Quartal 2026.

²¹ FPRE, Marktindizes für Renditeimmobilien, 2. Quartal 2026.}

Owner-occupied housing: upward price trend continues, single-family homes gain momentum

Price growth in the Swiss owner-occupied housing market continued in the second quarter of 2026. Prices for condominiums rose by 0.5% compared with the previous quarter and were 4.7% above the previous year’s level [62]. The momentum was considerably stronger for single-family homes, with prices increasing by 2.6% quarter-on-quarter and by 4.4% compared with the second quarter of 2025 [56]. Both owner-occupied housing segments therefore continued to record rising prices, with single-family homes gaining more strongly in the quarter under review, while short-term momentum in condominiums weakened. The development shows that demand for owner-occupied housing remains robust despite already high price levels. The market continues to be supported by low interest rates, limited new construction activity and the scarce supply of available properties. Prices are expected to increase over the next 12 months for both condominiums and single-family homes [59, 65]. SARON stood at -0.04% in June 2026 [19]. Interest rate forecasts also indicate that short-term rates are likely to remain close to zero for the time being [18]. At the same time, the volume of domestic mortgages reached CHF 1,239.7 billion in May 2026, 1.4% above the previous year’s level [22].

The timing of the tax reform has now been clarified. The Federal Council has set the reform of owner-occupied housing taxation to enter into force on 1 January 2029. From that date, imputed rental value on owner-occupied residential property will be abolished. At the same time, cantons will be able to introduce a special property tax on second homes as a compensatory measure. The decision provides greater planning certainty but is likely to have only a limited short-term impact on the market. For the time being, the reform remains primarily a medium-term factor, with effects likely to vary depending on the level of indebtedness, property condition and cantonal implementation.²²

The cantonal development of condominium prices remained highly differentiated in the second quarter of 2026. Geneva recorded the strongest quarterly increase at 4.4%, followed by Zug at 4.1%, Neuchâtel at 2.7% and Appenzell Innerrhoden at 2.3%. Bern, Uri and St. Gallen also recorded above-average growth of 1.9% each, while Glarus, Schaffhausen and Valais each posted increases of 1.8%. By contrast, prices declined in Basel-Stadt by 1.8%, in Nidwalden and Jura by 1.5% each, in Ticino by 1.3%, in Lucerne by 0.6%, in Thurgau by 0.5% and in Graubünden by 0.4%. Schwyz recorded no change compared with the previous quarter.²³

On a year-on-year basis, condominium prices increased in almost all cantons. Particularly strong growth was recorded in Zug at 11.3%, Uri at 8.8%, Appenzell Innerrhoden at 7.8%, and Bern and Obwalden at 7.7% each. Neuchâtel at 7.2%, Valais at 7.1%, Lucerne at 6.7% and Geneva at 6.4% also posted substantial increases. Ticino was the only exception, with prices declining by 2.4%.²⁴

For single-family homes, the quarterly increase was even more broad-based. With the exception of Basel-Stadt, where prices declined by 0.4%, all cantons recorded higher transaction prices. The strongest increases were seen in Zug at 3.6%, Appenzell Ausserrhoden at 3.4% and Bern at 3.3%. These were followed by Nidwalden and Appenzell Innerrhoden at 3.1% each, Valais at 3.0%, and Basel-Landschaft and St. Gallen at 2.8% each. Lucerne and Solothurn also recorded substantial increases of 2.7% each.²³

On a year-on-year basis, Zug clearly led the ranking with an increase of 11.4%. It was followed by Lucerne and Geneva at 6.0% each, Vaud at 5.8%, Solothurn at 5.5% and Valais at 5.4%. Bern at 4.9%, Basel-Landschaft at 4.6% and St. Gallen at 4.5% also recorded solid price growth. Ticino was again the only canton with a negative annual rate, at -0.3%. Obwalden was virtually unchanged, with an increase of just 0.1%. The data therefore show that demand for single-family homes not only strengthened in the second quarter but also became significantly more broad-based across regions.²⁴

Since the introduction of Basel III Final in January 2025, mortgage lending has been subject to more risk-sensitive capital requirements. According to the Swiss National Bank, however, the reform has so far had no material impact on the dynamics of the domestic mortgage market for owner-occupied housing. While the new capital requirements allow banks to differentiate lending and pricing more strongly according to risk, there has so far been no evidence of a general tightening in mortgage financing conditions.²⁵

The Swiss Real Estate Datapool recorded a total of 3,631 financed condominiums and single-family homes in the second quarter of 2026. This was virtually unchanged from the previous quarter, but 258 properties below the previous year’s level. At the same time, average transaction prices declined slightly quarter-on-quarter, from CHF 940,000 to CHF 920,000 for condominiums and from CHF 1.28 million to CHF 1.26 million for single-family homes.²⁶

Overall, the Swiss owner-occupied housing market remains robust. Low financing costs, scarce supply and positive price expectations point to a continuation of the upward price trend. Prices are therefore expected to continue rising in the coming quarters, although affordability, property quality and regional supply conditions are likely to play an increasingly important role in determining market dynamics.

Price development – owner-occupied housing Q2 2026

condominiums
single-family houses

^{Source: FPRE, Transaktionspreis- und Baulandindizes für Wohneigentum Schweiz, 2 Quartal 2026}

_{²² RAIFFEISEN, Immobilien Schweiz, 2Q 2026.

²³ FPRE, Transaktionspreis- und Baulandindizes für Wohneigentum Schweiz, 2. Quartal 2026.

²⁴ FPRE, Transaktionspreis- und Baulandindizes für Wohneigentum Schweiz, 2. Quartal 2026.

²⁵ SNB, Financial Stability Report 2026.

²⁶ Swiss Real Estate Datapool (SRED), SRED Newsletter, 2. Quartal 2026.}

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PwC Immospektive

Monetary policy in focus: zero interest rate environment persists, eco-nomic risks weigh on the outlook

Rental housing market: broad-based rise in asking rents, supply con-straints shift demand

Rental housing market – development Q2 2026

Office market: rents for new leases remain under pressure, Lex Koller revision creates additional uncertainty

Office space market – development Q2 2026

Yield developments: residential investments remain robust, office prop-erties show pronounced regional variations

Return development Q2 2026

Owner-occupied housing: upward price trend continues, single-family homes gain momentum

Price development – owner-occupied housing Q2 2026

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PwC Immospektive

Monetary policy in focus: zero interest rate environment persists, eco-nomic risks weigh on the outlook

Rental housing market: broad-based rise in asking rents, supply con-straints shift demand

Rental housing market – development Q2 2026

Office market: rents for new leases remain under pressure, Lex Koller revision creates additional uncertainty

Office space market – development Q2 2026

Yield developments: residential investments remain robust, office prop-erties show pronounced regional variations

Return development Q2 2026

Owner-occupied housing: upward price trend continues, single-family homes gain momentum

Price development – owner-occupied housing Q2 2026

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