Swiss real estate thrives as mortgage rates hit historic lows in 2026
The Swiss real estate market is showing signs of steady growth in 2026, with prices and transaction volumes on the rise. Despite economic uncertainty, low interest rates continue to make buying more affordable than renting in many regions. Demand remains strong due to high net immigration and a slow renewal of housing stock.
Between 2024 and mid-2025, the Swiss National Bank (SNB) cut its key interest rate from 1.75% to 0%. This move pushed average mortgage rates below 1%, while 10-year mortgage rates settled between 1.6% and 1.7%. As a result, buying property stayed more affordable than renting in large parts of the country.
In 2025, apartment prices climbed by 3.1%, and house prices increased by 2.4%. Transaction volumes also turned positive, with sales rising by 7% compared to the previous year. The market is now projected to grow by 2% to 3% in 2026.
Rental prices have also risen, though at different rates across cities. In Basel, average rents increased by 8.3% from 2023 to 2026, reaching CHF 25.60 per square metre. This remains lower than Zurich (CHF 29.40/m²) and Geneva (CHF 28.80/m²). Strong demand, driven by high net immigration and limited new housing, continues to push prices upward.
The Swiss real estate market is benefiting from low mortgage rates and sustained demand. With prices rising and transaction volumes increasing, the sector is expected to see moderate growth in 2026. For now, buying remains a more cost-effective option than renting in many areas.
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