Switzerland’s residential real estate risk index improved for the first time in three years in Q2 2026, easing to 3.5 from 3.7 in the prior quarter, according to Moneypark’s Real Estate Risk Index (RERI).
The slight reduction places the index back within the mid-range of its five-tier risk scale. Moneypark attributed the improvement to a rebound in economic sentiment and persistently low borrowing costs, as outlined in a Wednesday statement.
However, the labor market continues to pose a downside risk. Moneypark noted that the average unemployment rate rose to 3.1% in Q2 from 3.0% in the prior quarter and 2.8% a year earlier, potentially straining household affordability and dampening demand for owner-occupied properties.
Home prices continued to outpace general inflation, though the gap has narrowed. In Q2 2026, home prices rose 3.8 percentage points above the inflation rate, down from a 4.2-point gap in the prior quarter and a 5.0-point gap a year ago. Despite the moderation, Moneypark cautioned that a broad-based price correction remains unlikely given tight supply and sustained buyer willingness to pay.
Looking ahead, Moneypark expects the risk index to trend sideways or decline modestly in coming quarters. A rapid easing of risks is unlikely due to elevated unemployment, continued upward pressure on property prices, and pronounced regional disparities across Switzerland’s housing markets.
