Vie, Ene 26th 2024
Housing in Switzerland experiences a steep rise in rental costs, marking a significant shift in the housing market dynamics during the 4th quarter of 2023.
In Switzerland, housing costs are climbing at an alarming rate. In the final quarter of 2023, I witnessed a notable surge in rent prices for new and existing housing contracts while office space rents maintained steady.
The data from Fahrländer Partner Raumentwicklung (FPRE) reveals a 2.9% hike in rents for newly built apartments in Q4 2023 compared to the previous quarter. Meanwhile, rents for older apartments saw a 2.2% increase during the same period.
Year-over-year comparisons are even more striking. New-build apartment rents in Switzerland were 6.0% higher, and older apartments saw a 3.9% increase compared to the same quarter in the previous year. This rise in market rents was universal across all Swiss regions, with notable spikes in the Mittelland (6.7%), Jura (6.5%), and Zurich (6.3%) areas.
The forecast suggests continued escalation. Stefan Fahrländer from FPRE cites insufficient housing construction since 2020 and increasing immigration as critical factors. With demand for living space predicted to remain high in 2024 and construction activity lagging, market rents are expected to keep rising.
In stark contrast, the office space market has remained largely unaffected. New office space rents experienced a negligible dip of 0.4% compared to the previous quarter. However, they did register a 4.5% year-over-year increase.
Regional variances are prominent, with significant rent hikes in Basel and Mittelland (9.0% and 8.5%, respectively), while Lake Geneva and Eastern Switzerland witnessed notable declines (-4.9% and -4.8%).
This divergence between residential and office space rental trends underscores the evolving landscape of the Swiss property market. With housing costs soaring, the pressure on the residential sector intensifies, presenting challenges for renters and policymakers.
©Keystone/SDA
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