High interest rates cause house prices to fall in Switzerland

Properties are now valued 13.5% lower than last year, according to FPRE. Prices tend to fall unevenly, depending on the location. The largest declines were recorded in Appenzell (-17.6%), Obwalden (-17.3%) and Solothurn (-16.5%). In Zurich, prices fell by more than 10%, and the smallest decline was noted in Uri (-8.4%).

Housing has become less affordable, according to analysts, primarily due to tightening lending conditions. The availability and profitability of pension funds and any enterprises that have always invested in the real estate market have fallen. The Swiss housing market is still heavily skewed towards renting, which is 45% cheaper than buying.

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