A steady recovery and rising real estate prices
In recent years, the market as a whole has proven to be remarkably stable, despite various challenges such as interest rate trends, the effects of the COVID-19 pandemic, and the resulting rise in construction costs. Demand for housing remained high, while supply was tight. This led to further increases in real estate prices: condominiums rose by about 3.4%, and single-family homes by about 3%. This makes 2025 one of the years with the strongest growth in recent history. The main drivers were the ongoing housing shortage, population growth, and continued favorable mortgage rates. Despite strict lending rules, many households decided to purchase home ownership due to low interest rates.
Rental Market: Tight Conditions Across Switzerland
According to the Federal Statistical Office (as of June 2025), there were only about 37,000 rental apartments available nationwide. This represents a decrease of 8% compared to the previous year, 2024. This shortage led to moderate rent increases throughout Switzerland. Construction activity remains a problem: high costs, material shortages, and cumbersome permitting procedures delayed many projects. This further exacerbated the housing shortage.
Commercial Real Estate in Transition
There were slight shifts in the commercial real estate sector. While rents for logistics and industrial space remained stable, rents for new leases in the office sector declined in some cases. This was due to the trend toward hybrid work, which reduced the space requirements of many companies. However, this effect remained minimal for the overall market, as residential real estate continues to dominate.
Competitive prices and steady demand
In 2025, the real estate market in Valais stood out as an attractive alternative to Switzerland’s high-priced urban centers. Compared to median prices across Switzerland, prices in the canton remain significantly more moderate, making Valais particularly appealing to both homeowners and investors.
At the same time, demand for residential and vacation properties remains strong. This trend is driven in particular by the economically dynamic regions of Martigny, Sion, Visp, and Brig, which benefit from population growth, good infrastructure, and a high quality of life. This combination of comparatively attractive prices and stable demand underscores the long-term appeal of the Valais real estate market.
Significant regional differences
The Valais is a highly diverse region. Tourism areas benefit from consistently high demand for second homes. Regional centers feature stable markets for primary residences. The wide range of prices reflects this diversity. It makes the canton attractive to both investors and private buyers.
Housing shortage in Valais
In Valais as well, the supply of rental apartments declined slightly in 2025, particularly in larger towns and economic centers. The rental housing market remains tight as a result, further exacerbating the structural excess demand.
Elimination of the imputed rental value: Impact on the market
The imputed rental value is a notional income that is attributed to homeowners for owner-occupied residential property for tax purposes. The original aim of this system was to treat home ownership and renting equally for tax purposes, while allowing mortgage interest and maintenance costs to be deducted.
The vote resulted in the decision to abolish the imputed rental value. As a result, this notional income will no longer be subject to taxation. At the same time, tax deductions for mortgage interest and maintenance costs will be significantly restricted or eliminated.
This reorientation represents a fundamental shift in the system. Homeownership is becoming more attractive, particularly for homeowners with low or fully paid-off mortgages, while heavily leveraged models are losing their appeal. In the long term, this is likely to lead to a more sustainable financing structure in the real estate market.
Conclusion: Consolidation, rising prices, and tax reform
The Swiss real estate market in 2025 will continue to be characterized by high demand, limited supply, and moderate price increases. The rental market remains tight, and construction activity cannot meet demand. The planned abolition of the imputed rental value marks a significant systemic change and will influence the financing of home ownership in the future. The Valais region experienced stable and moderate growth in 2025. Attractive prices, significant regional variations, and healthy demand characterize the market. Overall, 2025 presents a picture of consolidation and reorientation. In the Valais, the market continues to offer opportunities but requires strategic decisions.
