The UBS reported its Swiss Real Estate Bubble Index, indicating the risks of a real estate bubble forming on the Swiss housing market, came in at 1.38 points in the second quarter. The index thus remained unchanged compared the previous quarter, keeping in "bubble-risk territory."

The UBS noted that improving economic conditions and the slight fall in inflation-adjusted prices for owner-occupied homes helped stabilize imbalances. According to the report, headline index was underpinned by the buy-rent price indicator, which reached another high in the second quarter of 2017. Investment demand for residential real estate also remained high. On the contrary, a dampening effect was created by the relatively moderate increase in outstanding household mortgages against the backdrop of slightly brighter economic conditions.