The duration of mortgage loans drops and real estate prices continue to increase

This half -yearly publication of MoneyPark and PriceHubble provides an effective estimate of the market concerning real estate prices as well as the mortgage market.

The key points in short:

1. New increase in real estate prices: after a positive development in 2024, the upward trend in the Swiss residential market was further strengthened in the first half of 2025. On a semi -annual basis (T2 2025 vs T4 2024), the prices of individual houses increased on average by 3.4%, while those of apartments in PPE recorded an increase of 2.4%.
2. The chosen mortgage durations are shortened: the interest rate curve increased further in the first half of 2025, which means that the difference in interest rate between the durations continued to widen. It is therefore not surprising that average durations of five to nine years have more and more the rating, to the detriment of long -term mortgages lasting a duration of ten years and more. Currently, the increasingly frequent choice of the Saron mortgage is due to the uncertain evolution of interest rates, either as an alternative to short durations, or as the second tranche in addition to a fixed rate mortgage. This behavior is clearly reflected in the deviations between the different slices: for the first -row mortgages, the Saron’s share amounts to just over 10%, while it amounts to more than 20% for second -rank mortgages. With the Saron tranche, mortgage loans and borrowers retain a certain flexibility and currently benefit from a low key rate.
3. The demand for ownership housing increases: at least since the fourth quarter of 2024, MoneyPark notes an increase in the demand for housing in property, which is also reflected by a slightly shorter sales period. Due to the weakness of interest rates, an even more pronounced recovery of the market could be expected, but the policy of selecting the stricter files of mortgage providers and the uncertain economic situation, made very unpredictable in particular by American customs policy, reveal a certain reluctance among new buyers and new buyers. Nevertheless, the increase in purchases should continue in the second half, because buying should remain significantly more advantageous than renting for the moment.