House Prices in Switzerland in 2025: A Complete Guide for First-Time Buyers

Buying your first home in Switzerland can feel like climbing the Alps: challenging, but incredibly rewarding if you know the way. With constantly shifting house prices and a unique property market, understanding the ins and outs of buying a home in this country is essential—especially for first-time buyers.

We’ll guide you through house prices in Switzerland in 2025, the factors that influence them, tips for first-time buyers, and practical steps to turn your dream of homeownership into reality. Let’s begin this journey with a confident step!

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Why Are House Prices in Switzerland So High?

Switzerland is known as one of the most expensive countries to live in, and the property market is no exception. According to the latest data from Trading Economics, the homeownership rate in Switzerland in 2023 was just 42.6%, far lower than in other European countries like Italy or Spain where it reaches 70–80%. This shows that many Swiss residents prefer to rent due to high property prices and limited supply.

In 2025, house prices in Switzerland are expected to keep rising, especially in major cities like Zurich, Geneva, and Basel. According to UBS Global Real Estate Bubble Index 2024, Zurich is among the cities at risk of a property bubble due to high demand and limited supply. The average house price in Zurich can reach CHF 1.5 million (around IDR 27 billion) for a 150 m² family home, while two-bedroom apartments in city centers range from CHF 800,000 to CHF 1.2 million. In rural areas like Appenzell or Graubünden, prices tend to be lower, starting from CHF 500,000 for a modest house.

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Factors That Influence House Prices in Switzerland

To understand house prices, you need to know what drives the Swiss property market. Here are the key points:

1. Location Is Key

Location accounts for nearly 70% of a property’s price. In Zurich, the price per square meter for apartments can reach CHF 12,000–15,000, while in Geneva it’s around CHF 10,000–13,000. In contrast, in cantons like Schwyz or Uri, prices can drop to CHF 6,000–8,000 per square meter. To save, consider suburbs with good transport access, such as Winterthur or Baden.

2. Property Type

Property type also affects prices. Single-family detached homes are much more expensive than apartments or condominiums. For example, a family home on Zurich’s outskirts might cost CHF 1.2 million, while a similarly sized apartment may only be CHF 700,000.

3. Mortgage Interest Rates

Mortgage rates in Switzerland in 2025 remain low, ranging from 1.5% to 2.5% for long-term mortgages, according to the Swiss National Bank. This makes loans more affordable, but also drives demand, which in turn pushes up house prices.

4. Tax Policies and Regulations

Switzerland has relatively low property taxes, but buyers must pay notary fees (about 0.5–1% of the house price) and property transfer taxes (1–3%, depending on the canton). Some cantons, like Zug, offer tax incentives for first-time buyers, which can ease the financial burden.

Step-by-Step Guide for First-Time Buyers

Buying your first home in Switzerland requires careful planning. Here are steps you can follow:

1. Set Your Budget

Before house hunting, calculate how much you can afford. Swiss banks typically limit loans to 80% of the house price, so you’ll need a 20% down payment. For example, for a CHF 800,000 home, you’ll need CHF 160,000 upfront, plus extra costs like notary and taxes (about CHF 20,000–30,000).

Use online mortgage calculators to estimate your monthly repayments. Ensure your repayments don’t exceed 33% of your monthly income, following Swiss bank guidelines.

2. Find a Suitable Property

Use property platforms to search for homes. Filter by location, price, and property type. If you’re looking for more affordable areas, consider cantons like Thurgau or St. Gallen. Always visit the property in person to assess the building and neighborhood.

3. Apply for a Mortgage

Compare mortgage offers from banks like UBS, Credit Suisse, or Raiffeisen. You can also use a mortgage broker to get the best rate. Prepare documents such as payslips, tax reports, and proof of savings.

4. Hire a Notary

In Switzerland, notaries are required to handle property transactions. They ensure all legal documents, like the purchase deed and ownership certificate, comply with regulations. Notary fees vary, but average CHF 5,000–10,000 for a CHF 800,000 home.

5. Check Property Ownership

Ensure the property has a clear ownership certificate (Grundbuchauszug). The notary will verify there are no legal issues such as outstanding mortgages or ownership disputes.

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Challenges and Solutions for First-Time Buyers

One of the biggest challenges is intense competition in the property market. Many buyers, especially in major cities, must compete with investors or expats with large budgets. The solution is to focus on properties in less popular areas or use real estate agents to access exclusive listings.

Another challenge is limited funds. If the down payment is a hurdle, consider saving longer or seeking family loans. You may also be able to use Account 2 of the EPF (if applicable for Malaysian expats) to help cover the deposit, as explained by Majalah Labur.

Make Your Dream Come True in Switzerland

Buying your first home in Switzerland is no easy feat, but with proper planning, it’s achievable. Understand house prices in your desired area, prepare your budget carefully, and take advantage of resources like property platforms and consultants. Remember, every small step brings you closer to your dream home in this beautiful country.