Residential Properties Continue to Increase in Price and Become More Attractive with Tax Reform

Despite economic uncertainties, many real estate providers in Switzerland see positive scope for rising or at least stable real estate prices, thanks to stable political conditions. According to the ImmoScout24 Purchase Index, compiled in collaboration with the real estate consulting firm IAZI, asking prices for condominium ownership increased by an average of 0.5 percent in September. The price level for single- family houses, however, remained unchanged once again (0.0 percent). Regionally, the picture is varied: In some markets, prices have continued to rise despite an increase in supply, while in others, they have slightly decreased.

Owner-Occupied Flats: Eastern and Central Switzerland Are Booming

The most significant price increases for offered owner-occupied flats compared to the previous month were recorded in Eastern Switzerland (up 1.3 percent) and Central Switzerland (up 1.2 percent), both accompanied by a rising supply volume. The Mittelland area also saw a noticeable rise (up 0.7 percent), whereas only slight changes occurred in Ticino (up 0.2 percent) and the Greater Zurich area (down 0.1 percent). A clear decrease was observed only in Northwestern Switzerland (down 1.3 percent).

Regional Single-Family House Market: Decline in Almost All Regions

In the segment of advertised single-family houses, asking prices fell compared to August in most regions. The decrease was particularly pronounced in Central Switzerland (down 1.8 percent). Price reductions were also observed in the Lake Geneva region (down 0.7 percent), the Mittelland (down 0.6 percent), Ticino (down 0.5 percent), the Greater Zurich area (down 0.4 percent), and Northwestern Switzerland (down 0.2 percent). The only exception was Eastern Switzerland, where prices increased significantly by 2.9 percent compared to the previous month.

Imputed Rental Value Abolished – New Opportunities for Buyers

After nearly a century, the Swiss electorate decided on September 28, 2025, to abolish the imputed rental value. This means the future elimination of the taxation of fictitious income, reducing the tax burden for homeowners and thus making homeownership more attractive overall. Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group, assesses the consequences of this decision as follows: "Particularly benefiting from the upcoming legal change will be households with a higher equity share and low mortgage burden. Thanks to the future rule for first-time buyers that mortgage interest can still be deducted for the first ten years, homeownership will continue to remain attractive for first-time buyers as well." New and like-new owner-occupied flats and single-family houses are expected to increase in price more significantly, Waeber continues. "For older properties needing substantial renovations, price development may slow down with the new regulation coming into effect in 2028, as maintenance costs will no longer be tax-deductible," predicts Waeber. Regardless, Waeber sees the main drivers for future price developments extending beyond 2028 in the topics of immigration, interest rate levels, and the scarcity of building land.

Media Contact:
Fabian Korn
Senior Communications Manager
media@swissmarketplace.group