sresi® 2024 shows that confidence has returned to the Swiss real estate market. The real estate index has risen by +107.3 points to 29.9 points, the strongest increase since the survey began. Moreover, the participants in the survey expect prices to rise, particularly in the residential segment, while prices for office and industrial real estate continue to be viewed negatively. At the same time, increasing regulation and the economic climate in Europe are viewed as the biggest risks this year.
KPMG asked over 400 real estate experts from across Switzerland about their expectations regarding economic and price trends in the real estate market over the next twelve months. This year's Swiss Real Estate Sentiment Index (sresi®) also scrutinizes the current political initiatives and resources relating to affordable housing and the excess demand for housing, and addresses the issue of sustainability and the associated net-zero target for 2050.
What is sresi® and who takes part?
Since 2012, sresi® has provided important insights on the assessment of economic and price trends in the Swiss real estate investment market, and has established itself as the market’s leading qualitative indicator.
In this year's edition, over 400 real estate experts representing an investment and appraisal volume of over CHF 350 billion took part in the sresi® 2024 survey, providing their assessments of market and price trends for real estate in Switzerland.
The most important results of the sresi® 2024 survey on the Swiss real estate market
Confidence has returned
The aggregated index has recovered from last year's all-time low, rising by +107.3 points to 29.9 points.
This is the largest increase in points since the sresi® survey began and suggests a return of confidence among Swiss real estate investors.
All participant groups are significantly more optimistic about economic trends and price movements in the real estate market compared to last year.
Stricter regulation has returned to top position on the real estate sector's risk assessment barometer, followed by the risk of contagion from the economic challenges in Europe. Both risk assessments have increased slightly since last year.
The turnaround in interest rates initiated by the Swiss National Bank has significantly reduced fears of rising interest rates, the most frequently cited risk factor in 2022 and 2023, and the linked fall in the value of real estate investments in the survey.
These risk factors are now in third and sixth place respectively.
Property prices are rising again in the residential segment and in economic centers
Following last year's all-time low, prices in the residential segment are expected to rise again, with 81% of participants anticipating an increase in residential real estate prices. Although price expectations for office, retail, industrial and special-use properties remain in negative territory, the price indices have improved significantly since last year.
Survey participants' optimism is also reflected in positive price trends in the major regions and various economic centers, with most respondents expecting prices to increase in those locations. Prices are expected to fall in only St. Gallen, Lugano and Basel. The survey result for Basel may be a consequence of political interference in the residential segment.
Special topic: Housing
77% of survey participants are of the opinion that current political initiatives (such as the rental price cap) are intensifying the shortage of affordable housing in Switzerland’s various economic centers. Just 8% of respondents disagree with this statement.
Moreover, more than 70% of respondents complain that politicians are not providing effective means (such as efficient planning and approval processes) to redress the imbalance between housing demand and supply over the next five years. Just 4% of participants believe that politicians will actively combat this problem and reduce the imbalance in the coming years.
Special topic: Sustainability
For at least 63% of respondents, the regulation of affordable housing is an obstacle to implementing their ESG (environmental, social, governance) strategies and achieving their sustainability goals for residential real estate. Conversely, just 11% of participants are of the opinion that regulatory intervention has no impact on the achievement of their sustainability goals.
28% of survey respondents agree or partially agree that the 2050 net-zero target can be achieved by following the defined reduction pathways and taking the recommended actions. This is an improvement of 10 percentage points compared to last year. 30% of survey participants are still of the opinion that the 2050 net-zero target cannot be achieved.
Get an overview of the results of sresi® 2024
View the full results of the survey on our dashboards. You can filter all survey results according to your needs.
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