Offer prices for rental apartments continue to rise sharply in November
Published: Thursday, Dec 7th 2023, 08:00
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Housing is becoming increasingly expensive in Switzerland. Rental properties were advertised at significantly higher prices in November than in the previous month. Due to the continuing shortage of supply, this is unlikely to change for the time being. However, sellers of residential property are also asking more for their properties again.
Apartment hunters can expect higher asking prices towards the end of the year. Asking rents were raised by an average of 1.2% in November compared to the previous month. This is according to the Swiss Real Estate Offer Index published on Thursday, which is compiled by the Swiss Marketplace Group (SMG) in collaboration with real estate consultancy IAZI. The upward trend is likely to continue. This is because supply remains tight.
According to SMG Swiss Marketplace Group, asking rents rose in all regions in November. The strongest growth was recorded in the greater Zurich region (+2.4 percent) and Central Switzerland (+1.3 percent). The increase was somewhat smaller in the Lake Geneva region (+0.9 percent), Eastern Switzerland (+0.8 percent), Ticino (+0.7 percent), Northwestern Switzerland (+0.4 percent) and the Central Plateau (+0.3 percent).
Over the past twelve months, asking rents have risen by an average of 4.5 percent across the country.
But even those who are not planning to move house will have to factor in higher expenses. On December 2, the reference interest rate relevant to tenancy law was raised from 1.5% to 1.75% for the second time this year. This allows landlords to increase existing rents by up to 3 percent as of April 2024, depending on the initial situation.
Slight price increases for residential property
However, those looking to buy residential property also had to dig deeper into their pockets in November than in October. According to the figures, single-family homes and condominiums were advertised at an average of 0.3 percent more expensive in November.
Year-on-year, prices for single-family homes also rose by 1.1% and for condominiums by 2.1%. According to the report, a generally very high price level and low availability in the owner-occupied home market are also making it challenging to find a suitable property.
The Swiss Real Estate Offer Index is an index that shows the development of asking prices for residential property and asking rents in real time. It is compiled in collaboration between SMG and its online real estate marketplace ImmoScout24 and the real estate consultancy IAZI.
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