Real estate prices on the housing market are rising and rising

The situation on the Zug real estate market remains tense. This is shown by a new study by the Zug Cantonal Bank.
 

Anyone looking for a rental apartment or wanting to buy a flat in the canton of Zug will find little cause for optimism in the latest analysis of the local housing market by the Zug Cantonal Bank (Zuger KB). The report states that demand for housing remains ‘unabatedly high’, while supply is growing ‘only slowly’. The result: rising prices for residential property and rents.

Peter Bucher, Head of Real Estate Investors at the Zuger KB, says: ‘Since the turn of the millennium, prices for residential property in the canton of Zug have risen continuously.’

The latest figures confirm this: according to the Zuger KB, rents in Zug in the second quarter of 2025 were 4.5% higher than in the previous year. Nationwide, the price increase was only 3%. A typical 3- to 3.5-room flat in Zug now costs around CHF 2,600 a month, and even more than CHF 4,000 in the ‘high-end segment’.

Home ownership has also become more expensive: prices for mid-market apartments have risen by 7% on average, which is almost double the previous year's figure. ‘A strong driver here is the current low interest rate level,’ explains Peter Bucher. As a result, the cost of owning a home has become cheaper than renting, which in turn is driving up demand, and thereby the prices for residential property.

The attractiveness of the canton of Zug also has its downsides     Photo: Matthias Jurt

Living space is rented out in no time
And the demand remains high, and this is reflected in the length of time that listings remain active, i.e., how long an apartment listing is publicly available on average. In the summer of 2025, this was just 15 days for rental apartments in Zug, according to the Zug Cantonal Bank. The Swiss average is 23 days. The listing duration for residential properties for sale was 40 days – and that’s lower than in any other canton in Switzerland.

One thing is clear for Peter Bucher: the canton of Zug is attractive. This is also evident from the 40,000 commuters who come to the canton of Zug every day for work. ‘The proportion of commuters in relation to the population of the canton of Zug is a very high 30% - and that’s unique in Switzerland,’ he says. And he points out that if only one in ten of those commuters wanted to live here, that would already be 4,000 additional interested parties. ‘This constant demand keeps the housing market stable at a high level.’

But the analysis also contains some good news for those looking for a place to live. Construction activity in the rental segment is continuing, ‘albeit at a moderate level’. Between mid-2024 and mid-2025, the construction of 550 new rental apartments has been approved, which is around 40% above the average for the past ten years. In contrast, however, there are already signs of a slowdown in residential construction for sale. The construction of only 200 new residential properties of this kind has been approved in the past 12 months – ‘significantly fewer than in the previous year.’

Construction is becoming increasingly complex
Why isn’t there more construction? ‘Zug is very economical with its land, and is striving to increase density on already built-up areas’, says Peter Bucher. ‘And that's also a quality factor. For example, you can quickly get to green spaces everywhere. This high quality of living is an important feature of the canton of Zug, and should be preserved.’ On the other hand, this means that building permit processes are complex and demanding due to the limited space available. But the fact is: ‘to ease the pressure on prices, supply should be expanded,’  he says.

The latter is also one of the goals of the ‘Housing Policy Strategy 2030’, which the government adopted in the autumn of 2024. ‘Politicians have recognised the problem,’ says Peter Bucher, but he emphasises that it will take time for the measures to take effect. In fact, a recently published government response to a minor interpellation showed that most of the measures in the strategy still need to be developed, and cannot be implemented until between 2027 and 2029.

Peter Bucher does not expect the situation to ease any time soon. ‘The Zug property market will remain very stable over the next five years. Excess demand will remain at a high level,’  he says.

In other words, anyone looking for a place to live in Zug will not have an easy time of it in the coming years.