Neither Frankfurt nor London: The risk of a real estate bubble is nowhere as great as in Zurich

Zurich's real estate market defies the global cooling trend: While London and Frankfurt normalize, the risk of a bubble is increasing here. Experts see the cause in the extreme dependence on cheap mortgages. An economic challenge is emerging.

Zurich, September 22, 2026 – While many of the most prominent global real estate markets, including London and Frankfurt, are undergoing a phase of cooling or even correction, a worrying scenario is emerging in Zurich. The danger of a real estate bubble is assessed as acute here and, according to current analyses, significantly exceeds that of other major cities. The primary cause of this development is the market's ongoing dependence on extraordinarily low mortgage rates, which have fueled price levels for years without a corresponding fundamental adjustment. The city on Lake Zurich, long considered an attractive location for highly qualified workers and financial experts, could thus be facing a significant economic challenge.

This development cannot be viewed in isolation from global economic conditions. While central banks worldwide are tightening the reins and thus ending the era of cheap money, real estate markets in many metropolises are reacting with normalization or even price declines. Zurich seems to be resisting this trend, which experts attribute to a mixture of high purchasing power, limited space, and the aforementioned interest rate dependency. The low interest rate environment of recent years has kept demand artificially high and enabled many players to acquire real estate at prices that are difficult to justify from a fundamental perspective. A sudden or sharper increase in mortgage rates could lead to a rapid revaluation of assets here.

The significance of these market dynamics for prospective students, particularly those considering an MBA program in the DACH region, is multifaceted. Zurich is home to some of Europe's most renowned business schools, whose MBA programs are highly regarded internationally. A stable and accessible housing market is of crucial importance for students, who often come from abroad and need to settle for the duration of their studies. Rising rents or uncertainty in the real estate market can further drive up the cost of living and reduce the attractiveness of the study location. The long-term perspective of gaining a foothold in Zurich after graduation could also be made more difficult by a speculative market situation, as the acquisition of residential property would become more expensive or unpredictable for young professionals starting their careers.

Cost of Living and Choice of Study Location

For MBA candidates seeking a career in the finance or consulting sector, Zurich and Switzerland in general remain a magnet. The prospect of high salaries and career opportunities remains unbroken. However, when choosing a place to study, the development of the local real estate market must increasingly be taken into account. The high cost of living in Zurich has always been a factor, but a potential real estate bubble could further exacerbate this or bring unexpected risks. Careful financial planning and the weighing of alternatives, for example in relation to study locations with more stable or cost-effective housing situations, could gain importance for future generations of students.