Real Estate: Apartment rents continue to increase

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New apartment rents in Switzerland increased by 2.9 percent in the fourth quarter of 2023 compared to the previous quarter, real estate consultancy Fahrländer Partner Raumentwicklung (FPRE) announced on Friday. In old flats, the increase in the same period was 2.2 percent.

FPRE writes that compared to the same quarter last year, market rents for new apartments were 6.0 percent higher and for old apartments 3.9 percent higher. There was an increase in market rents in all regions compared to the same quarter of the previous year. Increases in new building prices were particularly notable in the Mittelland (+6.7%), Jura (+6.5%) and Zurich (+6.3%) regions.

And this trend is unlikely to change much. FPRE’s Stefan Fahrländer stated that very few apartments have been built in Switzerland since 2020 due to increased immigration. According to Fahrländer, the demand for living space will remain high in 2024.

Additionally, a revival in construction activities is not expected. “As a result, too few apartments are being built to meet demand. “This shows that market rents are increasing further in Switzerland,” he says.

However, contract rents for new office space contracts remained virtually unchanged from the previous quarter (-0.4 percent). However, there was an increase compared to the same quarter last year (+4.5%).

But as FPRE points out, there are large regional differences. The most significant increases compared to the same quarter of the previous year were recorded in the Basel and Mittelland regions (+9.0% and +8.5% respectively). In contrast, Lake Geneva and Eastern Switzerland saw significant decreases in office rental prices (-4.9% and -4.8% respectively).

(SDA)

Source :Blick