Property Market Switzerland 2026 | 3

In the first quarter of 2026, the Swiss economy proved resilient despite a challenging inter­na­tional environment. According to SECO, seasonally and sporting-event adjusted GDP grew by 0.4% compared with the previous quarter, driven primarily by the indus­trial sector and in particular by the metals, data-processing equipment and watch manufac­turing indus­tries. For the full year 2026, we expect economic growth of 1.0%, which should accel­erate to 1.6% in 2027. However, the outlook remains subject to uncer­tainty, in particular due to geopo­litical conflicts, weakness in key export markets, and possible exchange-rate risks for the Swiss franc.

The labor market shows signs of a recovery in momentum following last year’s slowdown. While challenges in inter­na­tional trade and efficiency gains from artificial intel­li­gence are dampening job creation, the outlook has improved again, partic­u­larly in retail and manufac­turing. For the current year, we expect moderate employment growth of 0.4%, which is likely to accel­erate to 0.9% in 2027.

Inflation remains within the Swiss National Bank’s target range and stood at 0.4% in July. Higher energy and fuel prices did lead to a slight increase in headline inflation in April and May 2026, but this effect has since already eased again. There is also no sign of broad-based price pressure, as reflected in core inflation, which has remained at a low 0.3% since March 2026. Switzerland thus once again stands out clearly from many European economies, where inflation rates are in some cases signif­i­cantly higher. We expect a relatively low inflation rate of 0.7% for both the current year and 2027.

The Swiss National Bank has kept its policy rate unchanged at 0.0%. Given inflation expec­ta­tions, moderate economic momentum, and the still-strong franc, there is currently little pressure for monetary tight­ening. Market expec­ta­tions likewise suggest that the policy rate will remain at this level for the time being. This environment continues to support favourable financing condi­tions in the real estate market.