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Rents in Switzerland are expected to increase by an average of three percent this year. This is the result of a recent study by CS. This is because of the gap between rental supply and demand, and this gap is likely to widen.
This is partly due to the decline in building permits. They say about 1,500 fewer residential buildings have been approved in the last twelve months than in the same period last year.
At the same time, Switzerland’s relatively robust economy keeps demand high, which is particularly evident in immigration. In January and February alone, 19,400 people moved to Switzerland. And they all have to live somewhere.
The number of rental flat offers, ie the share of the announced rental flats in the overall market, increased slightly in the first quarter of 2023. But that doesn’t mean it’s a bigger offer again. On the contrary, the authors justify this increase with seasonal effects.
New tenants found quickly
According to the authors of the study, it can be seen from the publication time of the advertisements that the number of apartments for rent in Switzerland is quite low. According to the information obtained, rental flat ads are only published on the internet for approximately 25 days until a new tenant is found. Between 2016 and 2020, the tenant search took 40 to 50 days.
However, the situation varies greatly depending on the region. In many German-speaking Swiss cantons, the time an advertisement is available to the public has been significantly reduced. It fell the most in Zug and Graubünden, followed by Schwyz and Nidwalden. The publication time in the Zurich agglomeration decreased especially sharply.
But even in less centralized areas, for example the Bündner Rhine Valley, Chur GR agglomeration, Davos GR or Brig VS, advertised apartments are now selling much faster than the long-term average. These regions have benefited in part from the fact that since the corona pandemic some people are increasingly allowed to do their work from home. Brig also has the strong expansion of Lonza that draws people to the area.
However, in many French-speaking cantons, airtime is close to the long-term average and slightly longer in Neuchâtel, Jura and Ticino.
Most areas still have no shortage of housing
According to experts, despite the scarce housing supply, there is currently no shortage of housing in most regions. However, those looking for an apartment will have to factor in increasingly headwinds due to dwindling supply and rising rents.
“More critical than the current level of supply is that there is no apparent easing,” the report says. The authors predict that the housing supply will also become less and less in areas where there are currently enough apartments.
Because construction activity will be very low in the next one to two years and the “urgently needed structural density” has been very hesitant so far. (SDA/kae)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
