Housing markets show divergence in Germany and Switzerland

Residential construction markets in Germany and Switzerland are showing divergent trends. In Germany, regions such as Weißenburg-Gunzenhausen and Schweinfurt have experienced a sharp decline in new single- and two-family homes. In Weißenburg-Gunzenhausen, annual completions dropped from an average of 218 between 2020 and 2022 to just 110, resulting in an estimated €65.3 million revenue loss for local businesses. Schweinfurt reported a similar slump, with only 9 new homes built last year, causing a €7.7 million economic loss.

Conversely, the Swiss housing market may be approaching a turning point. A study by Wüest Partner suggests the trough in construction may have passed, forecasting a net increase of approximately 45,000 units in 2026 and 50,000 in 2027. However, the Federal Office of Housing (BWO) warns that the situation remains tense, with housing shortages persisting in Zurich, Central Switzerland, and mountain regions due to population growth and limited land availability. Additionally, the Swiss Real Estate Institute noted that rental offering prices fell by an average of 1.7% between July 2025 and July 2026, with the most significant decreases in Ticino and Zurich.