k-flash audio commentDemand for real estate in Switzerland likely to decline in 2026
k-flash audio commentDemand for real estate in Switzerland likely to decline in 2026

The case

The Swiss real estate market is expected to enter a period of consolidation in 2026.

Source: Immo-Monitoring report by Wüest Partner AG & SDA

The commentary

According to the latest Immo-Monitoring Report by Wüest Partner AG, the demand for rental apartments is likely to decline, a development which reflects several underlying trends, including a smaller number of people wanting to acquire their own apartments. In 2024, around 22,400 new single-person households were established, compared with 35,500 in 2021. This indicates a significant slowdown in household formation. At the same time, a weakening labour market has been dampening additional demand, particularly concerning immigration, which has been a key driver of housing needs in recent years.

Wüest Partner forecasts only moderate changes in price and rent levels. Asking rents are expected to increase slightly by around 0.7 %, while existing rents may fall by about 0.8 %. Condominium prices are estimated to rise by approximately 2.8 %, and single-family homes by around 3.1 %. In the commercial property sector, a small decline in office asking rents of about 0.6 % is anticipated.

On a more positive note, the construction and investment sectors show signs of renewed strength. Construction investment is expected to grow by roughly 5.3 % in 2026, signalling increased activity after a subdued period. Moreover, the planned abolition of the imputed rental value (Eigenmietwert), expected to take effect in 2028 or 2029, is likely to encourage additional renovation projects and long-term investments in the housing stock.

Overall, the Swiss property market appears to be moving from a phase of high demand and strong price growth towards a more balanced and sustainable trajectory, shaped by demographic shifts, labour market adjustments and evolving investment incentives.

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