The driver of rising real estate prices.

On behalf of the Federal Office of Housing (BWO), the Amt für Raumentwicklung Kanton Zürich and the cantonal planners of the Zurich metropolitan area (AG, LU, SG, SH, SZ, TG, ZG), IAZI AG and the Center for Regional Economic Development (CRED) of the University of Bern conducted a study in an attempt to quantify the drivers of rising property prices. The study sought to identify the most relevant factors that have contributed to the described rise in housing costs in Switzerland. A special focus was placed on the role of spatial planning.

An abridged version of the study in German language can be downloaded as a PDF here; the full study in German language is available as a PDF here.

The study investigated possible causes of rising housing costs in Switzerland. The housing market was divided into two segments, the owner-occupied and the rental market, and therefore both the prices for residential property (single-family houses and condominiums) and net rents offered were taken into account.

The starting point is the sharp rise in property prices since 2000.

The study is based on the following price trends in the two segments, as the study’s summary states: “Between 2000 and 2021, prices for single-family homes in Switzerland rose by around 80%, and those for condominiums by as much as 94%. At 30%, rents have also risen more strongly than the general cost of living (+8%) or nominal wages (+24%) during this period.”