The Swiss Times - Swiss News in English

Housing also more expensive in 2024 – prices continue to rise in January

Housing will also become more expensive in the new year. This applies to rental apartments and residential property. And this is unlikely to change for the rest of the year.

This is shown by the analysis of advertisements published on Tuesday in the Swiss Real Estate Offer Index, which is compiled by ImmoScout24 in collaboration with the real estate consultancy IAZI. Rental apartment offers developed differently in the individual regions in January. However, the national average showed a slight increase in prices overall.

There were significant regional differences in the development of rents. While only in the greater Zurich region did asking rents fall (-1.1%), they rose significantly in Central Switzerland (+1.4%) and Northwestern Switzerland (+1.2%). In the other regions, the increases were moderate. The increase was +1.0% in Ticino, +0.6% in the Lake Geneva region, +0.4% in the Central Plateau and +0.3% in Eastern Switzerland.

It is also expected that asking rents will continue to rise in the current year. The reason for this is the continued high level of immigration to Switzerland. Rental housing construction is lagging behind, which is leading to a housing shortage.

Despite the current decline, this also applies to the greater Zurich region. However, tenants in existing tenancies would also have to expect higher costs due to the second rent reference rate increase of 0.25 percent at the beginning of December. This will entitle landlords to rent increases of up to three percent as of April 1, 2024.

Price jump for single-family homes

But home ownership also costs more. Anyone looking to buy a detached house was faced with an average 0.9 percent higher asking price in January. In contrast, asking prices for condominiums remained practically constant compared to the end of the year (+0.1 percent).

Over the last twelve months, both single-family homes (+0.9 percent) and condominiums (+3.4 percent) have seen increases. It was noticeable that the advertised prices for houses had stagnated over the course of 2023 and had now made a significant leap upwards in January 2024.

In contrast, condominiums were already subject to a constant increase in the previous year. Sellers are confident that this trend will continue in 2024. The fact that mortgage interest costs have fallen again in recent weeks will also support demand for properties for sale.

©Keystone/SDA

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