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Switzerland Luxury Residential Real Estate Market Size (2024 - 2029)

The luxury residential real estate market in Switzerland is experiencing a recovery and growth phase, with the market size expected to expand steadily over the forecast period. Despite the challenges posed by the COVID-19 pandemic, which impacted market dynamics, the sector has rebounded to pre-pandemic levels. The market is characterized by a shift in demand towards larger apartments and less central locations, driven by changes in work and living patterns. Although there is a decline in liquidity in the rental market and a noticeable decrease in supply and demand for home ownership, the attractiveness of purchasing residential property remains due to low mortgage interest rates. This has led to price increases across various segments, with further growth anticipated due to supply shortages.

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Market Size of Switzerland Luxury Residential Real Estate Industry

Switzerland Luxury Residential Real Estate Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR > 5.00 %
Market Concentration Medium

Major Players

Switzerland Luxury Residential Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Switzerland Luxury Residential Real Estate Market Analysis

During the time frame of the forecast, the luxury residential real estate market in Switzerland is expected to register a CAGR of more than 5%.

  • COVID-19's impact was severe across all European countries, including Switzerland, and also affected market growth in the years 2020-2021. Despite the pandemic crisis, luxury residential real estate in the country is in a recovery phase, as sales in the country quickly bounced back to pre-pandemic levels. Some time back, no national measures were in place due to the COVID-19 pandemic. No proof of vaccination, recovery, or testing is required for entry into Switzerland. Since the return to normal, responsibility for measures to protect the population has been delegated to the cantons.
  • Liquidity in the rental housing market has generally declined. Advertised apartment rents fell by an average of 2.6 percent. Blurring the boundary between home and work encourages a reassessment of the housing situation. Various real estate market indicators, such as search subscriptions, vacancies, and insertion times, continue to confirm a shift in demand towards less central locations and larger apartments. Additionally, the second-home market is currently booming.
  • A decline in supply and demand for home ownership, while still high, is noticeable. This led to price increases of 6.7% for a medium-sized condominium and 8.3% for a medium-sized single-family house in the last 12 months. Nevertheless, the purchase of residential property is still attractive in terms of housing costs because mortgage interest rates are still very low. In 2023, further price growth is expected owing to a supply shortage. Across all sub-segments, an average increase of 2.5% for condominiums is predicted and 3.0% for single-family houses.

Switzerland Luxury Residential Real Estate Industry Segmentation

Luxury residential real estate refers to properties that are exclusively designed for human occupation and that provide charm and resort life with high-end amenities. A complete background analysis of the Switzerland Luxury Residential Real Estate Market, including the assessment of the economy and contribution of sectors in the economy, a market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics and geographical trends, and COVID-19 impact, is covered in the report.

The Switzerland luxury residential real estate market is segmented by type (villas and landed houses & apartments and condominiums) and by city (Bern, Zurich, Geneva, Basel, Geneva, Lausanne, and other cities). The report offers the market sizes and forecasts for the Switzerland Luxury Residential Real Estate Market in value (USD) for all the above segments.

By Type
Villas and Landed Houses
Apartments and Condominiums
By Cities
Bern
Zurich
Geneva
Basel
Lausanne
Other Cities
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Switzerland Luxury Residential Real Estate Market Size Summary

The luxury residential real estate market in Switzerland is poised for significant growth, with expectations of a robust expansion over the forecast period. Despite the challenges posed by the COVID-19 pandemic, the market has shown resilience, quickly rebounding to pre-pandemic levels. The absence of stringent entry measures and the delegation of health responsibilities to cantonal authorities have facilitated this recovery. The market is experiencing a shift in demand towards larger apartments and less central locations, driven by changing lifestyle preferences that blur the lines between home and work. The second-home market is also witnessing a surge, reflecting a broader trend of increased interest in residential properties. While there is a noticeable decline in supply and demand for home ownership, the attractiveness of purchasing residential property remains high due to low mortgage interest rates. This has led to price increases in both condominiums and single-family houses, with further growth anticipated due to supply shortages.

The market is characterized by a competitive landscape with both local and international players, operating in a semi-consolidated environment. Key players such as Honeywell Immobilier, Sotheby's International Realty, and Engel & Volkers Zurichsee Region Zimmerberg are prominent in the market, with some engaging in strategic partnerships and expansions to strengthen their market presence. The majority of the market is driven by existing home sales, with a significant portion of transactions involving single-family homes, townhomes, and condominiums. The demand is particularly strong among older and middle-aged citizens, with condominiums and apartments being the most sought-after property types. The involvement of international funds and foreign capital is encouraging domestic developers to form joint ventures, enhancing their financial and managerial capabilities. This dynamic market environment is expected to continue evolving, with ongoing developments and strategic initiatives shaping the future of luxury residential real estate in Switzerland.

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Switzerland Luxury Residential Real Estate Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

      2. 1.2.2 Market Restraints

      3. 1.2.3 Market Opportunities

    3. 1.3 Insights into Technological Innovation in the Luxary Residential Real Estate Sector

    4. 1.4 Government Regulations and Initiatives

    5. 1.5 Value Chain / Supply Chain Analysis

    6. 1.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Buyers/Consumers

      2. 1.6.2 Bargaining Power of Suppliers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Villas and Landed Houses

      2. 2.1.2 Apartments and Condominiums

    2. 2.2 By Cities

      1. 2.2.1 Bern

      2. 2.2.2 Zurich

      3. 2.2.3 Geneva

      4. 2.2.4 Basel

      5. 2.2.5 Lausanne

      6. 2.2.6 Other Cities

Switzerland Luxury Residential Real Estate Market Size FAQs

The Switzerland Luxury Residential Real Estate Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

Sotheby's International Reality, Residence Immobilien, La Roche Residential SA, Homewell Immobilier and Engel & Volkers Zurichsee Region Zimmerberg are the major companies operating in the Switzerland Luxury Residential Real Estate Market.

Luxury Residential Real Estate Market in Switzerland Report Snapshots

Switzerland Luxury Residential Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)