Central Switzerland (-2.1%) and Greater Zurich (-1.3%) recorded the most pronounced declines. The decline is weak, even non-existent, in Mittelland (-0.3%) and the Lake Geneva region (-0.2%).
Tenants saw rents fall by an average of 0.6% in Switzerland in November. House prices also fell, unlike those of condominium apartments which remained almost stable, a study indicated on Monday.
The evolution of rents, however, depends strongly on the region, underlines the Swiss Real Estate Offer index, noted by SMG Swiss Marketplace Group and by the real estate consulting firm Cifi.
Central Switzerland (-2.1%) and Greater Zurich (-1.3%) recorded the most pronounced declines. The decline is weak, or even non-existent, in Mittelland (-0.3%), the Lake Geneva region (-0.2%) and in eastern Switzerland (stable), while the North-West (+0.4%) and Ticino (+1.0%) recorded an increase.
The reference interest rate for rents remains unchanged at 1.25% until further notice. “However, the market expects it to increase in the spring of 2023 and some lease contracts could then suffer a rent increase of up to 3%”, warn the authors of the study.
The survey also notes the first significant drop in the price of single-family homes in a long time. People wishing to sell their homes had to lower prices by 0.9%. “The prices remain very high, however, the square meter being worth on average 7370 francs”, indicates the press release.
“It is possible that the Swiss central bank will raise rates again, which would make mortgages more expensive. Such monetary tightening could discourage potential buyers,” says Martin Waeber, director of Real Estate.
On the other hand, the prices of condominium apartments hardly changed in November (+0.2%).