Residential property prices in Switzerland have not fallen despite rising mortgage rates. On the contrary, they “continue to be unimpressed by the turnaround in interest rates”, writes Raiffeisen Switzerland in its media release on the status of its current transaction price index.

Raiffeisen notes that prices for single-family homes rose by 1.3 per cent and those for condominiums by 1.2 per cent in the second quarter of 2023. The strongest price increases within a year were recorded for single-family homes in central and eastern Switzerland, the bank writes; prices for condominiums have risen the most in central and southern Switzerland over the past four quarters.

Quelle: SRED, Raiffeisen Economic Research

Prices for owner-occupied housing Raiffeisen Transaction Price Index, 100 = 1st quarter 2015 (1q15): Source: SRED, Raiffeisen Economic Research

The market for owner-occupied housing was thus also unimpressed by the interest rate turnaround in the second quarter of 2023. Single-family homes cost 1.3 percent more than in the previous quarter. Prices for condominiums rose similarly strongly with an increase of 1.2 percent. Compared to the second quarter of 2022, single-family homes now cost 6.1 per cent more and condominiums 5.1 per cent more than a year ago. “In the battle between thin supply and higher financing costs due to interest rates, the shortage of supply continues to have the upper hand,” explains Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland.

Quelle: SRED, Raiffeisen Economic Research

Above: Price development of single-family homes (EFH) and condominiums (STWE) by major region (Index as at 30.06.2023, annualised growth rates). Below: Price development EFH and STWE by municipality type (Index status as at 30.06.2023, annualised growth rates). Source: SRED, Raiffeisen Economic Research

High single-family house price dynamics in Central and Eastern Switzerland

Compared to the previous year, single-family homes in central Switzerland (+18.8%) and eastern Switzerland (+9.8%) recorded the largest price increases. In contrast, prices rose less strongly in Bern (+3.4%) and northwestern Switzerland (+3.3%). In the case of condominiums, prices rose the most in the Central Switzerland region (+11.3%). The Zurich region recorded the smallest year-on-year price increases (+1.4%).

Condominium ownership particularly sought after in tourist communities

The breakdown of price development by municipality type shows that house prices in urban municipalities increased more strongly than in other municipality types by 7.3% within one year. In the condominium segment, on the other hand, tourist municipalities recorded the strongest price increases (+7.9%). With an increase of 4.1 per cent, condominium prices in central municipalities rose the least strongly.

Raiffeisen Transaction Price Index

The Raiffeisen Transaction Price Index is published quarterly at the beginning of each new quarter. It measures the price development of owner-occupied residential property in Switzerland, based on data from Raiffeisen and the Swiss Real Estate Datapool (SRED). Further information on the Swiss real estate market is available at