Market Commentary November 2025
As the year draws to a close, activity in the real estate sector remains strong. The market continues to attract fresh capital, and demand for Swiss property stays exceptionally high - driven by a combination of factors, including the lack of attractive alternative investments and the continued strength of the Swiss franc. New data such as a nationwide vacancy rate of just 1% and a sharp rise in asking rents did not sway voters in Zurich last weekend: with 59.3% of the vote, the electorate clearly rejected the initiative for a pre-emptive purchase right. This proposal was the first of at least five upcoming housing policy decisions in the canton and is likely to set the tone for the broader debate surrounding Switzerland’s tight housing markets. The Zurich Chamber of Commerce and several real estate companies jointly launched the fuerschi-zueri.ch movement, aiming to demonstrate that government intervention is not an effective solution to creating additional housing. The real estate industry continues to actively promote affordable housing in Zurich and across other regions of the country. New developments are key to expanding housing supply alongside efficient regulatory frameworks, streamlined approval processes, and the development of new residential zones. A current example is the rezoning of the Gaswerk site in Bern, which paves the way for around 500 new apartments. The listed property market also remains highly active: before year-end, an additional IPO (SPSS) is expected, and in Q1, Mobiliar plans to list its real estate fund. All recent capital increases were successfully placed, underscoring the ongoing exceptionally strong demand for real estate. Liquidity continues to flow directly into the market and major cities, pushing prices even higher. Residential transactions are once again taking place at gross yields below 3%. In terms of mergers, UBS confirmed the planned consolidation of Green Property and Urban Property, scheduled for completion on March 31, 2026, forming the new UBS (CH) Property Fund – Direct Mixed Urban.
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