Swiss property bubble risk increases amid interest rate changes

UBS index shows growing market pressure despite moderate mortgage demand

The UBS Swiss Real Estate Bubble Index rose to 0.29 points in the first quarter, up from 0.25 points.
A market correction is deemed unlikely by UBS experts due to moderate mortgage demand and a slowing construction sector.
Uncertainty regarding employment and income is expected to negatively impact demand for owner-occupied homes.

0.29 points

UBS Swiss Real Estate Bubble Index Score

3.2%

Year-on-year nominal price increase (Owner-occupied)

1.5%

Quarterly price increase (Owner-occupied)

2.2%

Year-on-year price increase (Rental property)

"The risk of a property bubble is considered 'moderate'."
— UBS Report

"Uncertainty about employment and income is likely to have a negative effect on demand for owner-occupied homes."
— UBS Authors

Bubble Trouble: Risk Index Climbs