Rent for Apartments is Likely to be Significantly Higher in 2023
Published: Friday, Jul 28th 2023, 09:40
Actualizado el: Viernes, Oct 13th 2023, 14:12
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The cost of renting an apartment in Switzerland is becoming increasingly expensive due to a number of factors. These include higher interest rates and inflation, a decrease in construction activity, and a growing population. This has resulted in fewer empty apartments available for more potential renters, leading to higher rents. In the last 40 years, the asking rents have increased by 145%, or an average of 2.15% annually. However, when adjusted for inflation, the average annual increase is only 0.6%. The number of advertised apartments has decreased by 31% compared to two years ago, and in 36 of 106 regions, the demand for apartments is at least four times higher than the supply. Since 2010, a relatively dynamic construction activity, especially in the rental sector, has contributed to a relaxation of the asking rents. However, this trend has now reversed, as construction activity has decreased and the population continues to grow rapidly. This has led to a decrease in the vacancy rate, which in turn has led to an increase in asking rents. WüestPartner predicts a 3.2% increase in nominal asking rents in 2023. The cost of buying an apartment is also increasing. From summer 2022 to summer 2023, transaction prices have increased by an average of 3.4%, despite already being at a very high level. This is partly due to the fact that new apartments meet high ecological sustainability standards, and also because they cost on average 30% less than a single-family house. In addition, the demand for second homes is driving up apartment prices.
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