Homeowners take note How to save thousands of francs a year
A study by Wüest Partner shows: Interest rates are falling, real estate prices are rising and homeowners can rejoice. Now you can save several thousand francs.
No time? blue News summarizes for you
- Mortgage interest rates in Switzerland have fallen sharply since 2022.
- This is the reason why financing costs for home ownership have fallen significantly despite rising property prices.
- Studies show that home buyers in Switzerland save up to CHF 11,000 a year thanks to the fall in interest rates.
- In central Switzerland in particular, a shortage of housing and rising rents are driving up demand and real estate prices.
Mortgage interest rates in Switzerland have fallen significantly in the last two years. This makes financing home ownership more affordable - despite rising real estate prices. This development benefits homeowners, as Blick writes.
Just two years ago, mortgage interest rates had peaked, causing the cost of financing real estate to rise sharply. This made the dream of home ownership considerably more difficult for many Swiss people.
Since then, however, the situation has eased: The yield curve is pointing downwards again and those who are currently taking out or extending their mortgage are saving several thousand francs a year compared to 2022.
This is how much you can save
A study by real estate consultants Wüest Partner shows that financing costs for mid-priced condominiums have fallen by CHF 8,400 and for single-family homes by CHF 11,000 per year since October 2022 - a decrease of over 42 percent. Despite these savings, real estate prices have risen in parallel.
Table: Assumed values for 2022: condominium: 850,000 francs, single-family home: 1,100,000 francs. Increase in value Q4 2022 to Q3 2024: condominium: 6.8%, single-family homes: 4.2%.
Demand for residential property in Switzerland has risen, which is reflected in an increase in search subscriptions. In the third quarter of 2024, these rose by 10.3% for condominiums and 8.6% for single-family homes.
The price increase can be seen in the latest transaction prices: Condominiums have increased in price by 4.8 percent and single-family homes by 3.5 percent - figures that are well above the average of the last ten years.
Real estate prices are rising the most in central Switzerland
In large parts of central Switzerland, such as the cantons of Uri, Obwalden, Nidwalden and Schwyz, the highest price increases are being recorded, with an annual rise of over 7 percent. The cantons of Schaffhausen, Graubünden, Fribourg and Appenzell Innerrhoden are also recording similarly strong increases.
Several factors are contributing to the current price increase. A housing shortage and the decline in the number of available rental apartments last year have led to a sharp rise in asking rents. This makes buying a home more attractive again for many and reinforces the trend towards investing in property rather than renting.