On average across Switzerland, asking prices for condominiums rose by 0,8 percent in May compared to the previous month, according to the Home Ownership Index published Friday by ImmoScout24 and IAZI. Compared to the previous year, the increase was a substantial 5.8 percent.

The prices demanded by sellers for single-family homes increased by only 0,3 percent month-over-month, and by 3,8 percent year-over-year.

High Demand Meets Falling Interest Rates

High demand continues to be the main driver of market developments. Recently falling mortgage interest rates are further boosting buying interest. The data shows that property sellers still view the market optimistically and believe that, despite the already high price levels, buyers' willingness to pay is not yet exhausted.

However, there are considerable differences — both between regions and between property types. «The selection is currently particularly large in the Lake Geneva region. What stands out there is by far the largest volume of condominium listings nationwide,» says Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group.

(Graphics: Immoscout24/IAZI)

The Mittelland region also shows a high supply. Around half of the listed properties there are single-family homes.

Zürich Region: Tight Supply and Price Increases

In contrast, supply is tightest in the Greater Zurich Area — one of the three most populous regions in Switzerland. «Only about one in twenty properties currently on the market is located in this region,» says Waeber.

This scarcity is reflected in the asking prices. In Zurich, single-family homes became 3,9 percent more expensive compared to the previous month, and condominiums rose by 1,1 percent.

Ticino (+1,2 percent) and the Mittelland (+1,0 percent) also posted above-average increases in prices for single-family homes. In Eastern Switzerland, however, prices dropped by 2,1 percent.

For condominiums, the largest increases were seen in Eastern Switzerland (+2,7 percent) and Central Switzerland (+2,3 percent). In the Mittelland (-0,7 percent) and Northwestern Switzerland (-0,4 percent), asking prices declined.