Rent Increases of More Than 15 Percent Are Possible
Published: Saturday, Sep 2nd 2023, 04:00
Mise à jour le : Vendredi, 13 octobre 2023, 14:12
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The Swiss Federal Office for Housing (BWO) has predicted a possible rent increase of over 15 percent by 2026. This increase is due to a rise in the reference interest rate by a quarter of a percent, allowing landlords to raise rent by three percent, as well as an additional 40 percent of inflation and general cost increases. The next and second interest rate step is expected in December or March. The current reference interest rate is 1.50 percent. The current housing situation is being affected by a number of factors, including rising interest rates, a decrease in construction activity, and higher prices for energy and building materials. Despite this, demand for housing remains high due to the strong Swiss economy. In response to the tight housing market, the Swiss government has convened a round table of stakeholders to develop an action plan. This plan is expected to include measures to speed up planning and building permit processes, as well as to promote affordable housing. The plan is expected to be finalized in the first quarter of 2024.nnnnnnnnnnnnnn
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