Swiss Property Sector Confidence Reaches Record High

The Swiss property sector has achieved an unprecedented milestone as confidence reaches its highest level since records began in 2012. The Swiss Real Estate Sentiment Index (Sresi) has made a remarkable recovery, surging to +69.5 points in 2025 from its previous all-time low of -77.4 points in 2023. This dramatic turnaround reflects growing optimism among industry professionals about the market's trajectory over the next 12 months.

Particularly noteworthy is the price trend sub-index, which has soared to +89.0 points, compared to +32.0 in 2024. This significant increase indicates strong expectations for price appreciation across the Swiss property market, marking a complete reversal from the negative outlook observed just two years ago.

For the first time in recent history, positive price forecasts extend across all location categories in Switzerland, with particularly strong expectations for central locations. The price index for central areas leads at an impressive +117.6 points, while medium-sized centres and conurbations follow at +90.0 points. Even peripheral locations show positive momentum with +16.3 points, marking a significant shift from previous years.

Zurich emerges as the standout market with a price expectation index of +117.3 points, followed closely by the Lucerne-Zug region at +108.1 points. Geneva and Lausanne also show robust optimism with +84.4 and +83.1 points respectively. However, Basel and Lugano display slightly negative outlooks, though these figures represent substantial improvements compared to recent years.

Despite the optimistic price outlook, the Swiss property market faces significant supply constraints, particularly in the residential segment. The supply index has plunged to -107.9 points, reflecting a severe shortage of investment opportunities in residential properties. This scarcity is attributed to insufficient construction activity relative to demand.

The survey of 400 industry participants reveals varying supply conditions across different property segments. While special properties show moderate scarcity with -38.1 points, the office, commercial, and retail spaces maintain adequate supply levels. This disparity highlights the unique challenges facing the residential sector, where demand continues to outstrip available inventory.

The survey highlights significant concerns regarding regulatory and economic factors affecting the property market. Approximately two-thirds of respondents view current regulations as highly detrimental to affordable housing development, while 20% consider them moderately negative. Bureaucratic hurdles emerge as a major obstacle, with 61% of participants citing very negative impacts and an additional third reporting somewhat negative effects.

Political developments and rising construction costs also pose substantial challenges to the market. Nearly half of the respondents (47%) express serious concerns about political developments, while 38% view high construction costs as very negative for affordable housing initiatives. Despite these challenges, the overall market sentiment remains positive, buoyed by strong investment pressure and expectations of rising rents.