“Pass the increase”: Landlords fail to show quarter after reference rate decision

class = “sc-cffd1e67-0 fmXrkB”>

There are 2.4 million rental houses in Switzerland. You should expect a rent increase after the reference interest rate decision made on Friday morning. As the questions from Blick show, the big landlords show no quarter.

“In principle, we comply with the legal framework and transfer rent changes,” writes real estate company Allreal. After all, households have also benefited from low rents in recent years thanks to low interest rates. Now, as interest rates rise, rents will have to rise again. “This is the only way to ensure continued investment in existing buildings and urgently needed additional living space,” says Allreal.

Few defend themselves

Life insurer Swiss Life, one of the strong names in the real estate market, also continues to increase rents. And you don’t have to wait for any headwinds. Swiss Life said less than five percent of tenants objected to the latest price increase upon request. “This shows that the current practice is largely supported by tenants.” An alternative interpretation: Many houses think that the chances of success in a challenge are very small, and so they leave it alone.

The situation seems a little less certain for UBS, which became Switzerland’s largest apartment owner with the acquisition of CS. He wants to adjust rents for “some” of his portfolio. In other words: increase. However, it is unrealistic to largely abandon reflecting the interest rate increase in favor of tenants.

There is hope, at least for those living in private or municipal flats: Municipal property authorities in Zurich and Bern announced that a decision has not yet been made on whether the interest rate increase will be implemented.

Source :Blick