Interlaken Real Estate Forecast: Growth, Demand, and Affordability

The real estate market in Interlaken is showing steady growth in 2025. Property prices continue to rise, with a recorded increase of 4.7% for single-family homes and 4.4% for condominiums in the first quarter. These figures reflect a national trend across Switzerland, where demand remains high amid limited supply.

Key drivers of this growth include:

• a series of interest rate cuts by the Swiss National Bank,
• population growth (over 80,000 new residents annually),
• a shortage of new land plots for development,
• and the region’s continued appeal as both a tourist destination and a desirable place to live.

🎯 Demand and Affordability

Despite the rising prices, interest in Interlaken’s real estate remains strong. Buyers include both local residents and international investors, particularly from Germany and France.

However, housing affordability remains a challenge:

• home prices in Interlaken start at around €850,000 for a small villa;
• 2–3 bedroom apartments range from €600,000 to €950,000;
• although mortgage rates have decreased (the average rate in May 2025 is about 1.4%), upfront costs remain substantial.

Experts note that buying property in Interlaken typically requires 20–30% down payment, making it difficult for younger families to enter the market.

🏘️ Rental Market Conditions

The rental market in Interlaken is under pressure:

• the average rent for a two-bedroom apartment is €1,700 per month;
• rental supply is limited, with vacancy rates below 5%;
• tenants face difficulties relocating due to long-term lease agreements and a so-called “lock-in effect” — existing tenants are staying put, while new entrants struggle to find available units.

Forecasts for 2025 indicate further rent increases of 3–4%, particularly in central areas and near the lakes.

🛠️ New Construction and Development

New housing supply in Interlaken is constrained due to:

• delays in obtaining building permits,
• geographic limitations (lakes, mountains, protected zones),
• and labor shortages in the construction sector.

Despite this, around 120 new housing units are expected to be completed by the end of 2025, mainly in the Wilderswil and Matten areas. These projects are geared toward mid-range buyers, including families and retirees relocating from urban areas.

🌍 Tourism Factor and Investment

Interlaken remains a tourist hotspot, making short-term rentals (like Airbnb) an attractive investment:

• rental yields can reach 5–6% annually;
• many buyers are investing specifically for short-term rental purposes;
• however, local authorities are tightening regulations, limiting rental durations and requiring special permits.

Nevertheless, investment potential remains strong, particularly in properties near train stations and routes to Jungfrau.

📊 Regional Comparison

Interlaken ranks among the most expensive locations in the Bernese region, second only to the capital in terms of price per square meter.

✅ Conclusions and Recommendations

In 2025, the Interlaken real estate market continues to strengthen. Demand remains high, particularly due to limited supply, while affordability is increasingly strained.

For Buyers:

• Consider properties on the outskirts (e.g., Unterseen or Wilderswil), where prices are 10–15% lower.
• Opt for properties with good resale or rental potential — liquidity is key in a constrained market.

For Investors:

• Short-term rentals remain attractive if regulations are followed.
• Studios and small homes near public transport offer good returns and stable demand.

For Renters:

• Prepare for continued rent increases.
• Explore nearby towns with better availability and commuter access.

End-of-2025 Forecast: Moderate price growth (up to 5%) is expected, along with limited new housing supply and continued high competition in the rental market. Interlaken will remain appealing to investors and those seeking a scenic, tranquil place to live or vacation.