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PROPERTY

How fast are property prices rising in Zurich in 2024?

House prices in Zurich went up in the last quarter of 2023 at a faster pace than the rest of the country, new figures show. What's the outlook for 2024?

Published: 16 January 2024 17:24 CET
Apartments on a sunny day in Zurich. Photo by Vincent Dörig on Unsplash

Buying a home in Switzerland will certainly set you back. But there’s one canton where prices are rising at a quicker pace. 

In the canton of Zurich, residential property prices rose by a relatively high 1.6 percent in the last quarter of 2023, after prices had effectively come to a standstill in the third quarter with a fall of 0.1 percent, Zurich Cantonal Bank (ZKB) reported in its real estate barometer on Tuesday. 

This means that at the end of last year, homes in Zurich cost 3.7 percent more than in the previous year, according to the bank’s research. Across Switzerland, the increase was 2.0 percent.

READ ALSO: Property market – are Swiss prices set to fall in 2024?

What will the current year bring?

Anyone hoping for a drop in the cost of property is likely to be disappointed.

ZKB expects a slight slowdown in price growth for the current year – but no significant fall. For the canton of Zurich, ZKB is forecasting house prices to increase by 2.5 percent. For Switzerland, price growth is likely to be 1.5 percent.

The major trends on the property market from last year are likely to continue in 2024, ZKB said. Net immigration in Switzerland is set to remain high, while the decline in vacancy rates for rental flats will continue to cause problems. 

Residential construction activity – slowed by fewer building permits and higher construction costs – will not be able to meet the additional demand for flats, experts warn. 

It’s no wonder then that the city of Zurich was given the top spot in a recent worldwide ranking of cities most at risk of a housing bubble. 

READ ALSO: Zurich tops worldwide ranking of cities at risk of housing bubble

The UBS Global Real Estate Bubble Index 2023 found that only Zurich and Tokyo remained in the bubble risk category, down from nine cities the previous year. Zurich had the highest score of 1.71, while Tokyo scored 1.65.

It means that house prices are grossly overvalued in Zurich. But, according to this study, rental prices in the Swiss city are rising even faster than real estate. Rent increases of five percent are possible in the next years, UBS real estate experts reported.

READ ALSO: Renting in Zurich – why sticking to one apartment will save you money

According to real estate group RealAdvisor, the median price for apartments on the market in Zurich is CHF 1,720,000. The asking price for 80 percent of properties falls between CHF 860,000 and CHF 2,980,000. The average price per m² in Zurich is CHF 16,118/m² (price per square meter).

The median monthly rent for apartments on the market is CHF 2,230, according to RealAdvisor, while the monthly rent of 80 percent of properties is between CHF 1,000 and CHF 4,350. The average annual rent per m² in Zurich is CHF 487/m² / year (annual rent per square meter of living surface).

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ZURICH

Why does Zurich need airbags on the front of its trams?

Due to a recent spate of fatal accidents, authorities in Switzerland’s largest city are looking for ways to make tramway tracks more secure for pedestrians.

Published: 23 April 2024 12:40 CEST
Why does Zurich need airbags on the front of its trams?

Three fatal tram accidents occurred in Zurich in the span of five days in early March.

In one, a pedestrian fell between the tram and the platform at the Oerlikon Ost stop; the victim was taken to a hospital in critical condition and died the next morning.

Next, a cyclist collided with a tram in District 5, succumbing to his injuries the next day.

The same day, another pedestrian fell under a tram at Zurich’s main train station, dying at the scene of the accident.

Though all three events happened in quick succession, accidents involving pedestrians or cyclists colliding with public transport in Zurich are not a new phenomenon.

“In recent years, accidents involving personal injuries have increased steadily,” said city official Michele Romagnolo. “People are crushed by trams and die. We can’t stand idly by.”

What is being done to prevent this type of deaths in the future?

The Zurich Transport Authority (VBZ) and tram manufacturer Alstom are currently testing airbags that inflate when a tram hits a pedestrian.

This mechanism would be triggered by a sensor on the front of the driver’s cab, and is intended to reduce the impact and consequences of a collision between the trams and pedestrians or cyclists.

According to Heinz Schulthess, president of the tram drivers’ association, “in head-on accidents, people first hit their heads on the window and then fall to the ground. An airbag pushes a person away, largely preventing the impact and minimising the risk of death.”

During this test phase, engineers are also looking into ways to increase the speed of airbag deployment and develop a mechanism for quick folding, so that the tram can resume operation immediately after an incident.

When would this system be deployed?

The trial run is expected to be completed in summer of 2024.

“What happens next depends on the results,” the VBZ spokesperson Leo Herrmann said.

Are any other safety measures under consideration as well?

According to Schulthess, another way to increase tram safety would be to install red LED lights along the tracks on the ground.

They would serve to would warn people crossing the tram tracks while staring at their smartphones.

“The main cause of accidents are pedestrians crossing the street without paying attention,” he said.

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