class=”sc-29f61514-0 fwWrRV”>
Anyone who takes the reins is threatened with the cost hammer! Market rents have increased rapidly in recent years. But tenants of existing tenancies need not worry about this. They often live in their own apartments for cheaper rent; But when they have to move, the rent becomes expensive.
New figures from Zürcher Kantonalbank’s (ZKB) annual property survey show just how cheap it is to stay in your old flat. Since 2008, rents for everyone living in an apartment in the canton of Zurich have fallen by an average of 3.3 percent so far. The decline in available rent is due to the reference interest rate falling steadily since 2008. Asking rents for advertised apartments increased by over 33 percent in the same period.
“Anyone who wants to move quickly knows that with the same budget today they will only get a much smaller or worse apartment,” says Ursina Kubli (44), head of real estate research at ZKB. The difference between requested rents and existing rents is large.
Big savings in Zurich
Anyone who stays in their apartment for a long time benefits from the accommodation bonus. The surcharge for moving in the city of Zurich is 26 percent. The average rental household in the city of Limmat saves over 5,200 francs per year.
The savings are not just large in the city of Zurich, where a housing shortage has driven up market rents. Renters living in peri-urban communities can also save a lot of money by not moving. In the canton of Zurich it is on average 3,000 francs per year. Throughout Switzerland, this figure is still 2,350 francs per year.
Seven billion retention bonus
In total, renting a house in Zurich can save a total of 1.1 billion francs. Throughout Switzerland, this figure is almost 7 billion francs.
In the city of Geneva, the accommodation bonus is even higher, and this is due to the tightly regulated rental housing market. The average tenant here saves 10,000 francs a year if they stay in their old flat.
In order to avoid additional costs when moving to another apartment, rented households are forced to give up one or more rooms. According to ZKB news, a young couple who moved into a 3-room flat in the canton of Zurich five years ago can now find a 2-room flat at most for the same price.
One room less
Tenants of a 5-room apartment have even less time. It is possible to move into a 4-room apartment with the same rent after just three years. After 35 years, only a 3-room apartment remains. Many people probably ask themselves why they should abandon their familiar, lovingly furnished surroundings if it will not bring any savings.
That’s another problem with the huge difference between the asking rent and the current rent: Since a move is accompanied by rising rents, tenants often decide against it. Since the kids moved in, they choose to ignore the fact that the apartment has become too big for them. This leaves valuable living space vacant that other tenants can immediately use. “The tenant is in a golden cage,” says Kubli. Dropping it is associated with high costs.
The situation is approaching its climax
This makes the search for a suitable rental apartment even more difficult for new tenants. Kubli warns that the situation will only get worse. “All rents are going up right now,” she says. Asking rents are the result of supply and demand. “If construction activities cannot keep up with population growth for a long time, we will face economic and social problems,” says the real estate expert.
Current rents have also become more expensive recently. At the beginning of June 2023, the reference interest rate increased from 1.25 percent to 1.5 percent. ZKB expects the next increase to occur in December. For next year, ZKB expects rents to increase by 4 percent. A similar increase in existing rents can be expected if the current lease agreement is made at a reference interest rate of 1.5 percent.
Source : Blick
I am Dawid Malan, a news reporter for 24 Instant News. I specialize in celebrity and entertainment news, writing stories that capture the attention of readers from all walks of life. My work has been featured in some of the world’s leading publications and I am passionate about delivering quality content to my readers.
