Residential rents rising in almost all municipalities according to study
Published: Thursday, Dec 7th 2023, 10:50
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Housing is becoming increasingly expensive in Switzerland. Rents on offer rose in almost all municipalities in Switzerland in the third quarter. Unsurprisingly, this was strongest in the Zurich area. In contrast, the upward price trend for residential property has slowed somewhat.
In around 85% of Swiss municipalities, asking rents for medium-quality apartments rose by a good 3% year-on-year in the third quarter of 2023, according to a "Swiss Real Estate" study published by major bank UBS on Thursday. This corresponds to the strongest average increase in asking rents since 2008.
Among all municipalities with at least 2,500 inhabitants, the city of Zurich recorded the highest annual rent increase of almost 11 percent, the report continues. Rents in Gossau (ZH) and Herrliberg rose by a similar amount. In western Switzerland, rents rose the most in Genthod, increasing by more than 10 percent.
Slowdown in the owner-occupied housing market
According to the study, home prices in the third quarter of 2023 will also be a good 3% higher on average across all municipalities than in the previous year. However, in contrast to the rental housing market, the price trend has weakened compared to previous years. The pandemic-driven boom is therefore likely to have come to an end, according to UBS. In 2021 and 2022, home prices still rose by an average of almost 7 and 6 percent respectively.
Compared to the end of 2019, i.e. before the outbreak of the coronavirus pandemic, home prices for properties of average quality rose the most in Arosa (+55%). Prices in Klosters also rose by more than 50% in the same period. The Zug municipality of Walchwil followed in third place. Echandens in the Lausanne agglomeration recorded the highest price increase in western Switzerland at 45%.
The big bank expects the existing trends to continue in the coming quarters, both on the rental apartment market and on the owner-occupied housing market.
©Keystone/SDA
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