Residential property prices continue to climb in Switzerland

The 2.5 percent annual price increase for 2020 corresponds to the rate of change between the annual average for 2020 and that for 2019.

The annual average is the arithmetic mean of the four quarterly indexes of the calendar year.

Compared to the same period of 2019, this represents an increase of 3.1 percent, as reported by the Federal Statistical Office (FSO). 

Prices increased on average 2.8 percent for single-family homes and 2.2 percent for owned apartments.

In the fourth quarter of 2020, the increase in IMPI was 2.3 percent compared to the previous quarter. Prices increased both for single-family homes (+ 1.5 percent) and for owned apartments (+ 3.1 percent). 

Price increases were recorded across Switzerland, regardless of the geographical location.

The findings correspond to those of an earlier study showing that housing in Switzerland has become more expensive during the coronavirus pandemic.

While many experts feared that real estate market in Switzerland would collapse during the health crisis, the opposite has happened. Rents, as well as purchase prices for houses and apartments have risen by 5.5 to 5.6 percent. 

READ MORE: What does the coronavirus mean for Switzerland's property market?

That particular study, by ImmoScout24 Swiss Real Estate Offer Index, indicated that both owned and rented housing is most expensive in the Lake Geneva region.