House prices remain high.

According to the Raiffeisen transaction price index, prices for detached houses remained virtually unchanged in the second quarter of 2026 compared with the previous quarter, whilst prices for flats rose by 1.0 per cent. Year-on-year, this translates to an increase of 3.4 per cent for detached houses and 4.2 per cent for flats. Raiffeisen’s chief economist, Fredy Hasenmaile, describes the slightly lower growth rates as a snapshot: price momentum in the housing market remains high overall, supported by persistently low mortgage rates and a tight supply.

This assessment is consistent with the figures from IAZI: The “IAZI Private Real Estate Price Index”, which is based on actual off-market transactions, recorded a 0.8 per cent increase in the willingness to pay for residential property in the second quarter compared with the previous quarter – driven primarily by flats (+1.3 per cent), whilst detached houses rose by 0.5 per cent. Over the year as a whole, this translates to price growth of 3.5 per cent for residential property overall. According to IAZI, the drivers are moderate inflation, low interest rates and immigration that remains high, albeit slightly down on previous levels.

Western and Southern Switzerland lead the way

Regionally, the picture is mixed. For detached houses, Western Switzerland recorded the strongest year-on-year price growth at 6.3 per cent, well ahead of North-Western Switzerland (+3.4 per cent) and Central Switzerland (+3.1 per cent). In the condominium sector, Southern Switzerland leads the way with an increase of 6.7 per cent, whilst the Lake Geneva region was the only one to record a slight decline of 1.4 per cent. The market environment therefore remains extremely favourable for sellers in regions where demand is high, whilst a certain degree of consolidation is becoming apparent around Lake Geneva.

Tourist municipalities as the real price drivers

Particularly relevant for the segment of exclusive second homes and holiday properties: the breakdown by municipality type shows that prices are rising most sharply in tourist municipalities – by 6.0 per cent for detached houses and by as much as 6.9 per cent for flats within a year. By way of comparison: in urban centres, detached houses rose by just 4.2 per cent, whilst flats increased by only 0.1 per cent. The persistently high demand for holiday and retreat properties in the mountains and in scenic locations thus confirms a trend that has already become apparent in recent quarters – and which particularly benefits regions such as the Engadin, Ticino and Valais.

Investment properties are also on the rise

Alongside owner-occupied residential property, the market for investment properties is also developing dynamically. The “IAZI Investment Real Estate Price Index” shows an increase of 1.3 per cent quarter-on-quarter and 4.3 per cent year-on-year for multi-family dwellings and mixed-use residential and commercial properties. IAZI cites as reasons the Swiss National Bank’s ongoing zero-interest-rate policy – reaffirmed in June 2026 – uncertainty on the capital markets, and high demand for housing coupled with a shortage of supply. For investors, regular rental income is therefore becoming increasingly attractive in the current low-interest-rate environment.

See also the market commentary by Prof. Dr Donato Scognamiglio, Chairman of the Board of Directors of IAZI AG on YouTube (Swiss German with High German subtitles).

Outlook: Cautiously optimistic despite global uncertainty

For the second half of 2026, IAZI anticipates a fundamentally stable market environment despite increased global economic uncertainty. Although the State Secretariat for Economic Affairs (SECO) has revised its economic forecasts slightly downwards in light of geopolitical tensions, key pillars such as the labour market, immigration and low interest rates remain intact for the time being.

What this means for buyers

Anyone looking to purchase an exclusive property must continue to brace themselves for a challenging market: high prices, limited supply and particularly strong demand in sought-after holiday destinations. At the same time, low mortgage rates continue to make buying a more attractive option than renting. Anyone who finds a suitable property in tourist regions should not hesitate for too long, given the above-average price growth.

What this means for sellers

For property owners, particularly in southern Switzerland, western Switzerland and tourist municipalities, the market environment remains very favourable. It is worth obtaining a well-founded, up-to-date valuation of the property in order to benefit from buyers’ continued willingness to pay high prices – especially as price trends continue to vary significantly depending on the region and property segment.

When buying or selling a property, it is always advisable to engage a well-connected, locally based estate agent. Thanks to its own office in the Engadin, Wüst und Wüst is consistently able to offer exceptional finds in this highly competitive market or to find suitable buyers.

Sources: Raiffeisen Switzerland, Transaction Price Index, 2nd quarter 2026 (press release, 7 July 2026); IAZI AG – CIFI SA, Property Price Indices, 2nd quarter 2026 (9 July 2026), including market commentary by Prof. Dr Donato Scognamiglio, Chairman of the Board of Directors of IAZI AG.