In the past few years, the prices for home ownership in the Säuliamt region of Switzerland have surged dramatically, driven by its proximity to the cities of Zurich and Zug. According to a recent study by UBS, even households earning a gross income of 200,000 francs per year are struggling to find suitable properties in the greater Zurich area. The situation is particularly dire, as only three of the fourteen municipalities in the Affoltern district—Ottenbach, Obfelden, and Maschwanden—still offer affordable home ownership options for high earners.
The UBS real estate study, titled Focus 2025, highlights that new home ownership is considered "unaffordable" in the remaining eleven municipalities, even for households with an income of 200,000 francs per year. This calculation is based on an average property size of 110 square meters with an initial loan-to-value ratio of 80 percent. The study indicates that financial affordability is becoming an increasingly significant hurdle for potential buyers.
UBS economist Thomas Rieder stated during a media briefing in Zurich on April 3, 2025, that, "The financial affordability is becoming a growing hurdle." Nationwide, only 31 percent of advertised properties with four or more rooms are within reach for households earning 150,000 francs annually. The situation improves slightly for those with higher incomes; 49 percent of properties are affordable for those earning 200,000 francs, and 64 percent for those making 250,000 francs.
Young households, often with less accumulated wealth, find it particularly challenging to secure home ownership, leading many to postpone or abandon their property aspirations altogether. As a result, the proportion of homeowners under 65 has significantly declined in recent years.
In addition to the challenges faced in the Säuliamt, the current economic uncertainty is pushing people towards safer investments, which is reflected in rising home ownership prices across Switzerland. The ImmoScout24 purchase index, developed in collaboration with the real estate consulting firm IAZI, has also reported an increase in property prices.
In March 2025, offer prices for single-family homes rose by 1.3 percent compared to February, while prices for condominiums increased by 1.0 percent. This uptick in prices is attributed to two main factors: the recent interest rate cuts by the Swiss National Bank and the perception of home ownership as a crisis-resistant investment amid geopolitical tensions and economic uncertainty.
Martin Waeber, Managing Director of Real Estate at SMG Swiss Market Group, explained that the drop in mortgage costs due to interest rate reductions has made home ownership more appealing. He noted, "On the one hand, the costs for mortgages have become cheaper due to the recent interest rate cuts by the Swiss National Bank. On the other hand, home ownership is seen as a more crisis-resistant and stable investment due to geopolitical tensions and general economic uncertainty." This combination has fueled interest in owning property, benefiting sellers in the process.
Regionally, the price increases for single-family homes have been particularly pronounced in Central Switzerland, where prices surged by 5.2 percent. Prices also rose in Eastern Switzerland and Zurich, both seeing increases of 2.2 percent, while Northwestern Switzerland experienced a 1.5 percent rise. The only region showing a slight decrease was Ticino, with a drop of 1.3 percent.
Condominiums have also seen price hikes, especially in Central Switzerland (+2.0 percent) and the Lake Geneva region (+1.6 percent), while prices in Eastern Switzerland fell by 2.2 percent. The overall trend indicates a significant acceleration in price increases, as Raiffeisen Switzerland reported a 2.2 percent rise in single-family home prices in the first quarter of 2025 compared to the previous quarter.
Compared to the first quarter of 2024, single-family homes are now 5.0 percent more expensive, and condominiums have increased by 3.5 percent. The strongest price increases for single-family homes were recorded in southern (+8.4 percent) and eastern Switzerland (+8.0 percent), while slight decreases were noted in western Switzerland and around Lake Geneva.
In tourist communities, home prices rose sharply, with single-family homes increasing by 4.4 percent and condominiums by 3.9 percent. Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland, commented, "The price increases for owner-occupied properties have noticeably accelerated at the beginning of the year. With the recent significant drop in financing costs, demand for home ownership has surged. Thanks to the positive outlook for a continued low-interest environment, the price dynamics in the Swiss home market are expected to accelerate further throughout the year, despite global uncertainties."
The current landscape of home ownership in Switzerland paints a challenging picture for many potential buyers. As prices continue to rise and affordability declines, it remains to be seen how these trends will shape the future of the housing market in the region.
