Rents have been falling for almost 15 years: Swiss Life is increasing the rents of more than half of its apartments

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Insurance group Swiss Life announced rent increases for 21,000 of its 38,500 flats. As Swiss Life boss Patrick Frost (55) said in an interview, most of the high income should flow to customers in the insurance industry. Less than ten percent of rental income goes to profit, as Frost said in an interview with “Weekend Switzerland” on Saturday.

Rents have been falling for almost 15 years. “Now the mechanism works in the other direction, given high interest rates and inflation,” said the head of Swiss Life, one of the country’s largest landowners.

Price-setting reference interest rate

The mortgage reference interest rate rose for the first time at the beginning of June. This formed the basis for the overall increase in rents in Switzerland. According to a survey of a dozen large landlords conducted by the AWP news agency in mid-April, most large landlords are increasing rents. Swiss Life was one of them.

In an interview, Frost also predicted a further decline in construction activity and therefore a tighter housing supply. The solution is relatively simple: “Build more!” But in addition to the higher interest rates, fewer new buildings are being built because of the objections. Frost urged politicians to take action, saying, “You can raise the barriers a little bit for possible objections.”

objection criticism

Residents who will complain about “shadows and construction noise” may be compensated. Frost said 90 percent of objections to standard construction methods currently are abused. (SDA)

Source :Blick