KPMG reported that its Swiss Real Estate Sentiment Index (SRESI) dropped to 47.5 points in its latest survey, down from a record 69.5 points a year ago, the highest level since the index began in 2012. Despite the decline, the index continues to indicate strong confidence in the real‑estate investment market.
The price‑expectation sub‑index slipped to 60.7 points from 89.0 points in the previous year, reflecting weaker optimism about price developments. Still, about 62% of the more than 370 surveyed experts expect residential prices to rise modestly to strongly over the next twelve months.
Across property types, residential price expectations remained high at 109.8 points, though lower than 131.0 points a year earlier, with roughly 90% foreseeing price increases. Office and retail spaces showed slight downward pressure, scoring –2.7 and –4.1 points respectively, while expectations for sales properties were markedly negative at –40.2 points.
Geographically, the strongest price‑rise expectations were recorded for urban centres (88.5 points) and mid‑size centres and agglomerations (76.1 points). Peripheral locations stayed positive at 8.8 points but lost growth potential. Zurich led with an expectation score of 104.0 points, followed by Central Switzerland (87.4) and the Geneva lake region (84.1). In contrast, Lugano posted –7.9 points and the broader Ticino region fell into negative territory.
Supply conditions also tightened. The residential supply index fell to –122.3 points from –107.9 points, and 84% of respondents anticipate a moderate to strong scarcity of suitable investment opportunities in the housing segment, five percentage points higher than in 2025.
Economic outlook expectations remained modestly negative, with the macro‑economic index at –5.0 points. Only respondents from real‑estate funds and insurers projected a slightly positive outlook.
"The property investment market remains robust despite dampened economic expectations," KPMG expert Beat Seger said, adding that the lower overall index reflects a normalization after an unusually strong previous year rather than a shift in sentiment.
