| RAMZI CHAMAT | OAKS GROUP SA
As the Swiss National Bank sets its key interest rate at 0%, conditions are ideal for making real estate purchases a strategic, safe, and sustainable choice.
On June 19, 2025, the Swiss National Bank (SNB) lowered its key interest rate to 0%—a widely anticipated but highly significant decision. It marks the sixth consecutive cut since March 2024. In a climate marked by negative inflation, a slowing economy, and a strong Swiss franc, this move is reshaping investment prospects across Switzerland. For those considering homeownership, the timing couldn’t be better.
The evolution of interest rates has a direct impact on the real estate market. After a phase of post-pandemic monetary tightening, central banks are now returning to more accommodative policies. In Switzerland, this translates into a gradual return to extremely low rates. For households and investors, this situation creates a rare opportunity: to purchase property with historically low borrowing costs.
In a country where access to homeownership remains a major issue, this monetary shift can make the difference between postponing a project and making it a reality.
On June 19, 2025, the Swiss National Bank decided to lower its key interest rate by 25 basis points, bringing it down to 0.00%. This is a strategic move, driven by several economic factors:
Inflation has entered negative territory (−0.1% in May),
The Swiss franc has appreciated significantly, impacting exports,
Economic growth remains modest amid global uncertainty.
In response, the SNB is acting cautiously yet decisively. It maintains the option for further interventions and does not rule out a return to negative rates if deflation deepens.
The cut in the key interest rate has an immediate effect on mortgage rates. Swiss financial institutions are passing on this monetary easing to their lending conditions. As a result, both fixed and variable-rate mortgages now display historically low levels.
For buyers, this means:
Increased borrowing capacity,
Lower financing costs over the loan term,
Better predictability of monthly payments.
In a country where stability is the norm, these financial conditions make homeownership not only more accessible but also more sensible.
Market volatility, geopolitical tensions, and near-zero savings rates have reshaped investors' priorities. Residential real estate is once again central to wealth management strategies.
In Switzerland, real estate offers several key advantages:
Strong demand in urban areas,
A stable and protective legal framework,
A controlled supply due to land scarcity and regulatory constraints.
Buying property today means investing in a tangible asset, less exposed to economic shocks and capable of retaining its value over time.
The current environment combines three rarely aligned factors:
0% interest rates + bank margin,
Low and predictable inflation,
A resilient and regulated real estate market.
For prospective homeowners, this represents a unique opportunity to take the leap, with financing conditions that align with their best interests. It's also the right time to transition from renting to owning in regions with high rents, allowing for better monthly budget optimization while building personal wealth.
By setting its key interest rate at 0%, the Swiss National Bank has opened a window of opportunity for those wishing to become homeowners. Borrowing costs have never been lower, the stability of the Swiss real estate market remains intact, and medium-term forecasts confirm the persistence of these favorable conditions.
However, this context won't last forever. Economic cycles change, and interest rates could rise again as soon as global growth or inflation picks up. That’s why acting now—with clarity and proper guidance—is a strategic decision.
Becoming a homeowner in 2025 is not just an achievable dream: it's an act of confidence in the future.
OAKS GROUP is proud to present EDEN 25, an exclusive development of 4 high-end apartments, HPE-certified, nestled in one of Geneva’s most sought-after neighborhoods.
Combining contemporary architecture, modern comfort, and a green environment, EDEN 25 is an invitation to live differently.
➡️ Visit the site: www.eden25.ch
📞 Direct contact: +41 79 204 21 14 / mb@oaks.ch
A rare project for discerning buyers.
Ramzi Chamat
OAKS GROUP SA
A 0% key interest rate allows for extremely low mortgage rates, reducing the total cost of borrowing and increasing household borrowing capacity. It’s a unique opportunity to become a homeowner at minimal cost.
Rates could remain low as long as inflation is under control and the Swiss economy remains in a slowdown. However, economic cycles evolve, and rates may rise again in the medium term. It’s wise to take advantage of current conditions.
Yes. In Switzerland, the real estate market is known for its stability. Combined with a strict legal framework and strong demand in urban areas, real estate remains a secure investment—even during times of low interest rates.
The key interest rate is set by the Swiss National Bank and influences banks’ refinancing conditions. Mortgage rates are applied by lenders and are usually influenced by the key rate and overall market conditions.
With very low interest rates, buying can be more financially advantageous than renting—especially in regions with high rental prices. It’s also a way to build lasting personal wealth.
