2023-07-20 20:03:03
Real estate
Rents have taken the elevator
In Switzerland, rents increased by 1.8% in the first half of 2023. And it is not about to stop.
PostedJuly 20, 2023, 10:03 PM
With 4.1%, Valais posted the strongest increase over the first half of the year.
LMS/Michel Perret
The Homegate rent index shows a new general increase in Switzerland: 1.8% over the first six months of the year. The main cause would lie in the lack of available housing, due on the one hand to a decline in construction activity and, on the other hand, to the importance of net immigration. Moreover, the rise in mortgage rates would push people looking for housing to turn to renting rather than buying.
In French-speaking Switzerland, all the cantons are concerned, with the highest increase in Valais (4.1%). At the level of large cities, Geneva shows an increase of 2.6%, while Lausanne is one of the few cities in Switzerland where rents are falling (-0.8% in the first half of 2023). The city of Zurich recorded the highest increase with 8.2%.
Construction should remain limited
And that should not change in the coming months, says the Swiss Marketplace Group in a press release. Indeed, housing construction activity should remain limited. Likewise, population growth is unlikely to slow down unless there is a major economic upheaval.
The Homegate rent index is generated by the real estate platform of the same name, in collaboration with the Zurich Cantonal Bank. It measures the monthly variation in rents, after correction of the qualifying factors (related to the quality, location and size of the apartments) of new dwellings and dwellings to be re-let on the basis of current market offers.
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