Swiss Real Estate & Mortgage Rates — Storm Coming or Just Noise?

Real Estate
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Hello Folks !

Hi everyone,

Lately I’ve been thinking a lot about how global macroeconomic trends could impact us here in Switzerland — especially when it comes to interest rates, mortgages, and the real estate market.

There’s growing talk about a potential financial storm triggered by US debt issues — some even suggest that Asian countries might stop buying Treasuries in retaliation for Trump’s proposed tariffs. If that were to happen, rates could rise sharply worldwide… and Switzerland wouldn’t be immune.

This leads me to a classic dilemma: is it wiser to buy real estate now, or wait and see? The risk of mortgage rates tripling (along with total interest costs) makes me very cautious.

As a side note — I keep reading that the upcoming removal of the “rental value” taxation on primary and secondary residences will have a major impact on the Swiss real estate market. I understand the direct consequences on our tax declarations (i.e., fewer deductions), but I’m still unclear on the broader real estate impact people are hinting at.

Would love to hear your thoughts on both topics:
1. Macro risks and how they might affect Swiss mortgage rates
2. The real market consequences of abolishing the rental value system

Thanks in advance for sharing your insights!

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What’s the logic there? Why would they rise?

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Yea, wonder why the rates would increase in Switzerland. Everything that has happened this month post the tariff announcement seems to suggest the rates in Swiss will go further down.

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I’d actually expect the opposite. Buy now and fix at a long term low rate, or wait a bit on the expectation of falling rates to fix at an even lower rate.

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To be honest, I don’t really know why interest rates should go up, but I keep seeing it mentioned more and more — starting with US rates.

And on the other topic, what about the potential upheaval in the real estate market that some articles are hinting at regarding the removal of imputed rental value?

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The vote would need to pass (which is unlikely, it seems like nobody is truly happy with the new setup).

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