Switzerland’s population is forecast to increase by far more than predicted by official statistics, according to real estate experts, which leaves the country unprepared to cope with soaring housing demand.

“The problems start with the fact that the official population forecasts are constantly too low,” according to Helvetica Property Group CEO Hans Holdener. 

The population in Switzerland will rise by as much as 148,000 this year, said real estate consulting firm Wüest Partner. This is considerably higher than the 70,000-rise forecast by the Federal Statistical Office (FSO), Swiss Info reports. 

Wüest Partner believes the principal growth driver is the labour market and predicts net immigration of 91,000 workers based on 2% employment growth. 

In 2022, Switzerland’s population rose by 55,000 households, or 74,000 people, towards the 8.8 million mark. This figure doesn’t take into account refugees and asylum seekers. 

According to real estate experts, housing construction in Switzerland is not keeping up with the population. Wüest forecasts show an estimated 90,000-100,000 extra apartments would need to be created.

Furthermore, back in 2010, the Federal Statistical Office forecasted Switzerland would reach the 8.9 million inhabitants threshold by 2055, but these predictions have already been surpassed. The Helvetica Property Group CEO expects Switzerland to reach the 10 million mark in a decade, not by 2040, as predicted by officials.

“That plays a decisive role in the fact that we are notoriously building too few apartments, and there is a shortage,” Holdener said, who added that Switzerland could become the new Monaco with exorbitantly high rents and real estate prices.

The real estate experts continued that Switzerland needs to bolster investment and improve conditions, such as zoning laws, to permit greater construction.