Property Market Switzerland 2025 | 2

Tariffs and increasing trade policy tensions have led to consid­erable uncer­tainty worldwide and are also putting strain on the Swiss export industry. At the same time, it is possible to identify factors that are stimu­lating the economy: the expansive monetary policy of the SNB is likely to boost investment, private consumption, and the construction sector.

Inflation remains at a very low level (+0.0% in April 2025); had it not been for rental prices, the National Consumer Price Index would have even declined. Additionally, the decrease in the reference mortgage rate could strengthen this devel­opment.

The Swiss National Bank reduced its base rate to 0.25% in March 2025. Whether it will be reduced again this year is as yet unknown: a new easing could indeed counteract an excessive appre­ci­ation of the Swiss franc and support the economy, but at the same time further exacerbate the defla­tionary pressure through falling existing rents.

The growth in employment is losing momentum, the unemployment rate has risen slightly, and there are fewer job vacancies. In spite of this, thanks to the continuing need for staff in the public admin­is­tration, healthcare and education sectors, among others, employment is expected to increase by 0.8% in 2025 and 0.9% in 2026 – therefore employment growth continues to be positive, but rather more moderate than in the past 3 years.