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In Switzerland, only 36% of households live in a home they own. This is the lowest rate in Europe, a paradox in a country where many aspire to own their own home. So why is it so difficult?

Ever-higher prices

In recent years, the price of home ownership has risen sharply. In some regions, even buyers with an income of over CHF 200,000 are struggling to find an affordable property. Steadily rising prices, combined with limited supply, are driving the middle class further and further away from the real estate dream.


Limited supply and construction restrictions

The housing shortage is getting worse, particularly in urban areas. Lack of building land, planning restrictions and opposition to projects are holding back new construction. As a result, available property is scarce, expensive... and often in high demand.


Strict financing requirements

In Switzerland, the conditions for obtaining a mortgage are stringent. You often have to provide 20% of your own funds, part of which must be cash. What's more, banks apply strict solvency criteria, based on a theoretical interest rate of around 5%.


Late access, or inheritance

The average age of home ownership is rising steadily. Some people manage to take the plunge thanks to an inheritance or family support, but this opportunity varies from one situation to another.


What are the alternatives?

  • Widen your search perimeter: opportunities exist outside urban centers.
  • Plan for the long term: a regular savings plan can facilitate access to home ownership.
  • Mobilize your pension provision: some people use their 2nd or 3rd pillar, with caution, to supplement their contribution.

Conclusion


The dream of becoming a homeowner in Switzerland is still alive and well, but today it requires real anticipation, a good knowledge of the market and often some concessions.
Want to find out more or start your search? Browse the properties for sale on dreamo.ch!



Sources
watson.ch- Article
swissinfo.ch - Article
watson.ch- Article
blick.ch - Article
letemps.ch - Article
rts.ch- Article
rts.ch - Article