Property Market Switzerland 2026 | 2

For 2026, we expect moderate real economic growth in Switzerland of 1.1%. Growth thus remains below the 10-year average of 1.9%. The main dampening factors are geopo­litical and geoeco­nomic devel­op­ments, as well as the persis­tently strong Swiss franc. With the escalation of the conflict in the Near and Middle East, inter­na­tional energy prices have risen sharply since early March, temporarily weighing on global inflation rates and economic growth.

In the past year, labour market momentum slowed signif­i­cantly, with employment growing by only 0.2%. For the current year, we continue to expect moderate employment growth of 0.4%, which is clearly below the 10-year average (+1.2%). In addition to subdued economic devel­opment, efficiency gains from the increased use of artificial intel­li­gence are also slowing job creation, partic­u­larly in admin­is­trative and IT-related occupa­tions.

The weak labour market dynamics are also likely to dampen inter­na­tional immigration. Accordingly, we expect below-average growth in the permanent resident population of 0.6% for 2026.

In our baseline scenario, we assume that inflation will remain within the Swiss National Bank’s target range on average over the year. Against this backdrop, the SNB policy rate is likely to remain at 0% in the coming months. Financing condi­tions therefore remain favourable. Interest rates for 10-year fixed-rate mortgages have been moving within a narrow range for over a year and currently stand at around 1.9%. By historical standards, the interest rate level remains attractive.