After rising for three consecutive quarters, Swiss house prices fell in the second quarter of 2024, according to the data of the Federal Statistical Office (FSO).
The Swiss residential property price index (IMPI) fell by 1% between April and June. At the same time, prices remained 1.5% higher than a year earlier.
The IMPI index is calculated on average based on approximately 7,000 transactions from all regions of Switzerland. The FSO receives this data from the 25 largest mortgage institutions in Switzerland, which cover a large percentage of mortgage-financed real estate transactions.
The prices of both apartments (-1.3%) and private houses (-0.7%) contributed to the decline in the overall index compared to the previous quarter. Private house prices fell particularly significantly in large urban centers (-2.6%). In contrast, prices rose the most in small urban areas near major cities (+4.6%). The sharpest decline in apartment prices was observed in semi-urban areas connected to large cities (-4.2%), while the largest increase was observed in medium-sized cities (+0.5%).
For many potential buyers in Switzerland, this means earning enough income to qualify for a mortgage. According to an analysis published late last year, a family hoping to buy a quality 140 sq m house in Zurich would need an income of 500,000 Swiss francs (€512,170) to meet standard bank requirements.
In Geneva, the amount is similar. In Lausanne, Basel and Bern you will need more than 300,000 Swiss francs (307,300 EUR). However, a couple with the average income in Switzerland (CHF 80,000 or EUR 81,950) will only have CHF 160,000, leaving a large gap between their income and the minimum required for a mortgage.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE