In the study, entitled Strong Demand For Swiss Real Estate, the private banking group sets out the reasons why it believes house prices will continue to rise: low interest rates, population growth thanks to immigration, a shortage of land to build on and the stable economic situation.

At the end of last year, the debts of homeowners in Switzerland amounted to SFr568 billion ($677 billion), which is 104 per cent of the country’s GDP. That is relatively high by international standards, but is put into perspective when low interest rates and inflation are taken into account.

Of course, Switzerland’s influx of cash-rich companies and individuals provides a real boost to the Alpine state’s real estate prices. A flexible labour market, a strong currency (too strong at the moment, some would say), high living standards and comparably low taxes make Switzerland an attractive location for multinational organisations and highly-qualified professionals, particularly those who work in financial services.

However, Sarasin hedges its bets by warning that in the current bullish environment, prices are not a one-way street leading upwards. A sudden interest rate increase is believed to be the main threat to the market.

According to Wüest & Partner, the Swiss property consultants, the total market value of land and buildings in Switzerland is estimated to be approximately SFr2,310 trillion. This breaks down into housing worth SFr1.975 trillion and commercial properties worth SFr335 billion.