With prices continuing to rise, a new study from UBS has revealed that the goal of buying a house in Switzerland is becoming increasingly distant for most people. The report found that those with average incomes are priced out of large swathes of the country.

UBS: House prices in Switzerland will continue to rise in 2025

In the study, the Swiss bank predicted that house prices will continue to rise in 2025. The cost of apartments will increase by 3 percent across the year, while single-family homes will become 4 percent more expensive.

Experts blamed the rising prices on a lack of construction: the number of new homes being built in Switzerland today is a third lower than the 15-year average. Faced with high demand and low supply, “affordability is becoming an increasingly greater hurdle," noted UBS expert Thomas Rieder.

What do I need to earn to afford a house in Switzerland?

The report found that a couple who both earn around the average salary in Switzerland, 150.000 francs a year total, are only able to afford 31 percent of homes on the housing market. Even individuals or pairs with a total income of 200.000 francs a year are only able to get a mortgage approved for 49 percent of properties.

The high prices are most pronounced in Zurich. There, couples with a 200.000-franc income are not able to afford anything in the city itself, but could secure a home within a 30 to 45-minute commute by public transport. UBS found that it was impossible to find anything affordable near Zurich for those who earn less.

For those interested, a 2023 report from real estate agent and consultancy Iazi found that you would have to have an annual salary of 525.000 francs and a down payment of over 600.000 francs to afford a single-family home in the city of Zurich.

Young people priced out of the Swiss housing market

In Basel, most neighbourhoods in and around the city are inaccessible for homebuyers with a 200.000 franc salary. The notable exception is Bern, where neighbourhoods are still affordable for those with high incomes.

UBS noted that the high prices affect young people the most, who rarely have the financial muscle to afford property. Therefore, they noted that the proportion of homeowners in Switzerland younger than 65 has dropped precipitously in recent years.

Where are the most affordable homes near Swiss cities?

Speaking to Blick, real estate agent Eric Corradin noted that towns located between 30 and 60 minutes away by train from Zurich provide the best value for money - but are still extremely expensive. Towns like Kloten, Regensdorf, Rümlang and Dietikon offer homebuyers the best price per square metre, though they remain unaffordable for most.

For Bern, Corradin noted that Lyss, Burgdorf and Langenthal are the places to look for an affordable property. Laufen, Frick and Liestal were top for Basel, while Lichtensteig and Romanshorn were best for St. Gallen.  

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