Is luxury development too expensive even for Zurich?: You get two months’ rent free here

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About a week ago, the luxury address in Zurich’s Albisrieden district looked more like a construction site than a luxurious life. While construction workers were working at full speed behind the barriers, washing machines were standing on the side of the road. Instead of green space, yellow excavators and construction debris surrounded the Letz9 project.

Even if it doesn’t seem like it: The new tenants will move in on Wednesday, November 1. However, the lights will not be on in all apartments. 4 out of 36 flats have not been rented yet. And this is in times of housing shortage. Last month, marketer Intercity was desperately trying to fill rental apartments and so launched an unusual campaign for Zurich: Anyone who moves in can now live in the new building for free for two months.

With this campaign, Intercity helps those who make last minute decisions. Despite the notice period of your old apartment, you can move to your new apartment without having to pay rent twice.

Vacancy despite housing shortage

The proposal is likely to upset many Zurich residents. After all, there is a housing shortage in the city, as in many cities in Switzerland. Vacancy figures are historically low. On June 1, 2023, there were only 144 vacant apartments in the city of Zurich. This corresponds to a vacancy rate of 0.06 percent.

Blick repeatedly reports on desperate tenants who are almost helpless to find living space in the city. Real estate expert Donato Scognamiglio (53) is also surprised by the campaign, considering the current situation. “Everyone who has an empty property today needs to ask themselves why,” says the chairman of real estate company Iazi.

So why do new flats in Letzigraben remain vacant on the move-in date? “The owner purchased the property at the project stage and was therefore only able to start marketing it later than usual,” explains in-demand real estate service provider Intercity Marketing. The apartment building belongs to the SBB pension fund.

Luxury flats remained empty

However, shortening the marketing period is insufficient as a justification. The average marketing time for an apartment in Zurich and the surrounding area is eleven days. This is also shown by current figures from real estate consultant Wüest Partner. Apartments in the luxury development have been advertised for much longer. The lockdown offer, which includes only free rent, has been in effect for a month.

The main reason for empty flats is probably the price level of the properties. Apartments are expensive even for Zurich. One of the vacant 3.5-room apartments is advertised for 4,675 francs. If you compare the project’s prices with Wüest Partner’s Zurich market prices, it becomes clear that luxury properties are among the 10 percent most expensive in the city. According to Scognamiglio, special promotions such as free months are an attempt to “maintain the high price.”

Trap offer instead of rent discount

Although the apartments are advertised as having “quality and exclusive” interior design, their location is not that privileged. There is neither lake access nor lake view at Albisrieden. The development is located on a busy road. There’s a Denner’s right next door.

The landlord seems to have exhausted the maximum willingness of the Zurich upper class to pay at prices. There is no other explanation for the four empty apartments.

Source :Blick