Property Market Switzerland 2024 | 3

Whereas inflation in the Eurozone picked up slightly in May and the US continues to record annual rates of inflation of around 3%, Switzerland is enjoying relative price stability. While Swiss inflation did pick up slightly in June 2024, it rose to just 1.3%. We are expecting an inflation figure of around 1.4% on average for 2024, followed by a rate of 1.1% in 2025.

In view of declining inflationary pressure and the challenges posed by the strong Swiss franc for the export industry, the Swiss National Bank (SNB) decided to cut its key interest rate twice in the first half of 2024. This decision has consolidated developments in the real estate market, as reflected in stable net initial yields, among other things.

The real economy is in robust shape. In the first quarter of 2024, the annual growth rate for employment (measured by full-time equivalent positions) amounted to +1.4%, which once again exceeded the average of the last 10 years. For the current year we are expecting employment growth of 1.3%. With this rise in employment, the Swiss population can also be expected to increase further. We are expecting population growth of 0.9% this year.