It is a well known fact that more people in Switzerland are tenants than homeowners, and it all comes down to money. 

This is confirmed by yer another study, by UBS bank, which found that fewer and fewer households can still afford to buy a house or apartment. 

While 20 years ago, 60 percent of households in Switzerland could still afford to purchase property, today the percentage of residents owning property valued at 880,000 francs or more dropped to merely 15 percent.

READ ALSO: Why do so many in Switzerland rent rather than buy a home

In order to afford cheaper properties, people have been moving from cities to the suburbs, where homes had typically been less expensive, but the growing demand in those regions has increased the prices there as well.

And short-term outlook is not favourable either: UBS experts expect the prices of apartments to increase by another 1.5 percent this year, and 1 percent for single-family houses.

This may not seem like much, but if a property costs 1 million francs or more (a usual price in major cities), the 1 or 1.5 percent adds up to a lot of money.

Why are properties getting more expensive in Switzerland?

There are number of reasons for this phenomenon, including scarcity of land for new constructions, the steadily high demand, and inflation, among other reasons.

How much do you need to earn to afford a property these days?

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As prices vary from one region, and even from one town to another, the income you’d need depends on where you live.

In Geneva or Zurich areas, for instance, where housing is notoriously expensive, a household would need a gross income of 300,000 francs a year to buy a home or an apartment, though in traditionally cheaper regions like Jura, Neuchâtel, Ticino, or some areas of central Switzerland, an annual salary of between 100,000 and 200,000 francs may suffice.

What is the forecast for residential properties the future?

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More price increases are expected from 2025.

This hike would be driven by the economic recovery as well as the general housing shortage.

UBS pointed out that as long as there are enough potential buyers, prices will continue to rise.

And it is a fact that the demand for houses and apartments is still there, despite the cost.

On the one hand, that is because an increasing number of wealthy people from abroad are settling in Switzerland. 

And on the other, because the income of people belonging to the upper class has increased.

READ ALSO: Where in Switzerland property prices are rising the fastest