REAL ESTATE NEWS

1

Holiday Home Market: Bargains Hard to Find

The Swiss market for holiday homes has seen a significant price increase in recent years. High demand and limited supply, particularly in popular areas like Ticino and Graubünden, have led to significant price rises. According to experts, affordable offers have become rare. Especially in tourist hotspots, prices have increased by up to 40% since 2020.

Those still looking to purchase a holiday home at a lower price might find opportunities in less touristic areas or in sales under time pressure. In more remote mountain regions and less touristic areas in German-speaking Switzerland and Romandy, buyers may encounter more moderate prices. The market in these lesser-known regions often does not benefit from the same media presence and marketing that favor the more well-known locations, which can lead to more favorable prices.

Additionally, buying a holiday property in these less frequented areas often comes with other advantages, such as less competition when buying and more negotiating room regarding the price. However, it should be noted that such properties may not experience the same appreciation as those in established holiday regions. Investors and holiday home buyers are therefore well advised to also consider the long-term prospects and infrastructure development of the respective region.

2

National Council Votes to Abolish Imputed Rental V…

The National Council has voted to abolish the imputed rental value for secondary residences. At the same time, a constitutional basis for a property tax is to be created to allow cantons and municipalities to compensate for revenue losses. This controversial proposal, which has already failed twice at the polls, will now go to the Council of States.

The abolition of the imputed rental value could have significant financial implications, especially for tourism-dependent cantons. However, the National Council is seeking a long-term solution with compensation through a property tax. This new tax system could lead to property owners being taxed directly based on the market value of their properties, ensuring a fairer distribution of tax burdens. Furthermore, the National Council hopes that abolishing the imputed rental value will invigorate the real estate market and increase the availability of rental properties, as owners might be more inclined to rent out unused apartments instead of leaving them vacant.

The debate in the National Council showed a wide range of opinions, with proponents of the change arguing that the current regulation is outdated and no longer reflects the reality of many property owners. Critics, on the other hand, warn of the financial consequences for public budgets and call for detailed analyses of the economic impacts of this reform.

If the Council of States agrees to the proposal, it would be a significant step towards comprehensive tax reform that could modernize property taxation in Switzerland. However, intense discussions and potential adjustments are expected before a final decision is made. In the meantime, various interest groups are planning campaigns to inform and influence public opinion about the significance and potential impacts of this legislative change.

3

Rental Prices in Switzerland Slightly Increase in…

In September 2024, rental listings in Switzerland saw a slight increase again. The Homegate index rose by 0.2 points to 128.1. Compared to last year, rents increased by 3.9%, with the Canton of Schwyz recording the highest monthly rise of 3.1%. Schwyz also leads on a yearly basis with an increase of 11.4%, followed by Zug with 11.1%.

On the other hand, decreases were observed in Schaffhausen and Graubünden. Cities like Basel (+1.1%) and Zurich (+6.8% year-on-year) also experienced significant price increases. This trend indicates that rental prices in Switzerland continue to rise, especially in sought-after regions and cities, making the market increasingly challenging for tenants.

4

SNB Lowers Key Interest Rate to 1.0%

The Swiss National Bank (SNB) lowered the key interest rate by 0.25 percentage points to 1.0% on September 26. This is the last action under the outgoing President Thomas Jordan. The decision reflects decreasing inflationary pressure in Switzerland. Additionally, it aims to weaken the strong Swiss franc to support the export-oriented economy.

The SNB indicates that further rate cuts may be necessary in the coming months if price stability remains at risk. At the same time, modest economic growth of about 1% this year and 1.5% for 2025 is expected. The weakening global economy and uncertainties abroad continue to be the main risks for the forecasts.

Jordan emphasized at his last press conference that it has been a privilege to have led the SNB since 2012. Martin Schlegel will take over as President of the SNB on October 1st.

REAL ESTATE NEWS

1

Holiday Home Market: Bargains Hard to Find

The Swiss market for holiday homes has seen a significant price increase in recent years. High demand and limited supply, particularly in popular areas like Ticino and Graubünden, have led to significant price rises. According to experts, affordable offers have become rare. Especially in tourist hotspots, prices have increased by up to 40% since 2020.

Those still looking to purchase a holiday home at a lower price might find opportunities in less touristic areas or in sales under time pressure. In more remote mountain regions and less touristic areas in German-speaking Switzerland and Romandy, buyers may encounter more moderate prices. The market in these lesser-known regions often does not benefit from the same media presence and marketing that favor the more well-known locations, which can lead to more favorable prices.

Additionally, buying a holiday property in these less frequented areas often comes with other advantages, such as less competition when buying and more negotiating room regarding the price. However, it should be noted that such properties may not experience the same appreciation as those in established holiday regions. Investors and holiday home buyers are therefore well advised to also consider the long-term prospects and infrastructure development of the respective region.

2

National Council Votes to Abolish Imputed Rental V…

The National Council has voted to abolish the imputed rental value for secondary residences. At the same time, a constitutional basis for a property tax is to be created to allow cantons and municipalities to compensate for revenue losses. This controversial proposal, which has already failed twice at the polls, will now go to the Council of States.

The abolition of the imputed rental value could have significant financial implications, especially for tourism-dependent cantons. However, the National Council is seeking a long-term solution with compensation through a property tax. This new tax system could lead to property owners being taxed directly based on the market value of their properties, ensuring a fairer distribution of tax burdens. Furthermore, the National Council hopes that abolishing the imputed rental value will invigorate the real estate market and increase the availability of rental properties, as owners might be more inclined to rent out unused apartments instead of leaving them vacant.

The debate in the National Council showed a wide range of opinions, with proponents of the change arguing that the current regulation is outdated and no longer reflects the reality of many property owners. Critics, on the other hand, warn of the financial consequences for public budgets and call for detailed analyses of the economic impacts of this reform.

If the Council of States agrees to the proposal, it would be a significant step towards comprehensive tax reform that could modernize property taxation in Switzerland. However, intense discussions and potential adjustments are expected before a final decision is made. In the meantime, various interest groups are planning campaigns to inform and influence public opinion about the significance and potential impacts of this legislative change.

3

Rental Prices in Switzerland Slightly Increase in…

In September 2024, rental listings in Switzerland saw a slight increase again. The Homegate index rose by 0.2 points to 128.1. Compared to last year, rents increased by 3.9%, with the Canton of Schwyz recording the highest monthly rise of 3.1%. Schwyz also leads on a yearly basis with an increase of 11.4%, followed by Zug with 11.1%.

On the other hand, decreases were observed in Schaffhausen and Graubünden. Cities like Basel (+1.1%) and Zurich (+6.8% year-on-year) also experienced significant price increases. This trend indicates that rental prices in Switzerland continue to rise, especially in sought-after regions and cities, making the market increasingly challenging for tenants.

4

SNB Lowers Key Interest Rate to 1.0%

The Swiss National Bank (SNB) lowered the key interest rate by 0.25 percentage points to 1.0% on September 26. This is the last action under the outgoing President Thomas Jordan. The decision reflects decreasing inflationary pressure in Switzerland. Additionally, it aims to weaken the strong Swiss franc to support the export-oriented economy.

The SNB indicates that further rate cuts may be necessary in the coming months if price stability remains at risk. At the same time, modest economic growth of about 1% this year and 1.5% for 2025 is expected. The weakening global economy and uncertainties abroad continue to be the main risks for the forecasts.

Jordan emphasized at his last press conference that it has been a privilege to have led the SNB since 2012. Martin Schlegel will take over as President of the SNB on October 1st.

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About us

The Swiss Property Owners Association is a free and dynamic association for all property owners in Switzerland—and those who aspire to be. With no political agenda, our guiding principle “Invest intelligently in real estate” supports our members throughout the entire life cycle of properties. From targeted acquisition through careful holding to optimized sale.

Richard’s Favorites: Recommended by the President

A 16th-century Old Town apartment? A house with direct lake access? A secluded, abandoned farmhouse? The properties curated personally by Association President Richard Auf der Maur are not necessarily expensive, but they are definitely exciting and unique.

Ittigen
In Ittigen, we are selling an extremely attractive, well-maintained town villa with many possible uses.
Ittigen
In Ittigen, we are selling an extremely attractive, well-maintained town villa with many possible uses.
Zollbrück
This Emmental farmhouse, newly built in 2006, combines tradition and modernity: 683 m² of floor space, lift, heat pump, underfloor heating, own forest, biotope and stables for small animals.
Zollbrück
This Emmental farmhouse, newly built in 2006, combines tradition and modernity: 683 m² of floor space, lift, heat pump, underfloor heating, own forest, biotope and stables for small animals.
Zürich
Hamberger Park is the most exclusive residential development in Zurich's Seefeld district. And living door to door is not exactly cheap, but it is extremely pleasant.
Zürich
Hamberger Park is the most exclusive residential development in Zurich's Seefeld district. And living door to door is not exactly cheap, but it is extremely pleasant.
Basel
We are selling a unique loft flat just 100 metres from the banks of the Rhine. The former laundry, converted in 2009, offers high rooms, large window fronts and plenty of space.
Basel
We are selling a unique loft flat just 100 metres from the banks of the Rhine. The former laundry, converted in 2009, offers high rooms, large window fronts and plenty of space.
Aigle
This listed villa from the century before last combines class and style in an impressive way.
Aigle
This listed villa from the century before last combines class and style in an impressive way.

Resources for every stage of your journey home

Discover current and informative articles about real estate. Here, you will find detailed analyses, practical tips, and the latest trends.

Cultivating a Balanced Home Environment with Feng Shui

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Straight to the Point: How Your Words Can Convince Potential Buyers

In an era where most property buyers begin their search online, the listing often serves as the first point of contact with a property. The right words can be crucial: they can spark a potential buyer's interest or cause them to simply scroll past. A well-crafted property listing can make the difference between a quick sale and a property that lingers on the market.