Asking for rent in Switzerland: lack of living space in these cantons drives prices up

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In the first half of 2023, demanded rents across Switzerland increased by 1.8 percent, according to a study published by Homegate on Thursday. In some cantons, the increase has also increased significantly since the end of 2022. Schwyz, for example, shows an increase of 7.4 percent. And they say a slowdown in momentum is not in sight right now.

While higher ancillary costs were partially responsible for the increase in rents requested last year, Homegate currently cites a lack of living space as the main reason for the increase in rents. According to the information obtained, the supply gap is due to the decline in construction activity throughout Switzerland, as well as the high level of net migration.

Although immigration had already increased last year, it rose again by 24 percent by May this year. But they say rising mortgage interest rates may motivate people looking for apartments to return to the rental segment rather than buy.

The city of Zurich is the leader

Swiss cities were badly affected. The highest increase in rental prices was in the city of Zurich, at 8.2 percent, while the increase in the entire canton of Zurich was only half that. In Lugano (+3.7 percent) and Geneva (+2.6 percent), the increase in the first half of the year was disproportionately high.

However, the nationwide increase can by no means be attributed to cities alone. With the exception of the canton of Zug, demanded rents rose in all Swiss cantons. Rents increased the most in the rural cantons of Schwyz (+7.4 percent), Wallis and Nidwalden (4.1 percent each).

Meanwhile, there are no visible signs of relaxation. Housing mobility is expected to remain low, according to the study. Nor can a significant decrease in population growth be expected without visible economic changes. If you are looking for an apartment to rent, you should be prepared for higher prices. (SDA)

Source : Blick