The asking rents published in advertisements remained practically unchanged in May. However, there has been a significant increase over the year. In the case of advertised condominiums, a slight increase in prices can be seen despite growing financing costs, while the prices for single-family homes fell slightly.
Over the past twelve months, asking rents in the Swiss market have risen by an average of 3.9 per cent (May +0.2 per cent). This is shown by the Swiss Real Estate Offer Index, which is published by the SMG Swiss Marketplace Group in cooperation with the real estate consultancy IAZI. The current increase in the rent reference rate by 0.25 percentage points to 1.5 per cent is now likely to lead to increases in many existing tenancies that are legally linked to this rate. Specifically, according to IAZI data, about half of the tenants could face a rent increase of up to 3 per cent on the next contractual termination date of 31 October this year. However, how many landlords will actually make use of their right is difficult to estimate.
“The mere possibility of a further increase in rents is likely to raise concerns among tenants,” says Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group, adding: “In addition, tenancy law allows landlords to pass on – at least in part – high inflation and general cost increases to rents. This could result in effective rent increases of up to 6 or even 7 per cent.”
An examination of the development of rents in the past month reveals regional differences: increases were recorded in Eastern Switzerland (+1.0 per cent), Central Switzerland (+0.5 per cent) and Northwestern Switzerland (+0.5 per cent), while there were hardly any changes in the Lake Geneva region (+0.2 per cent) and the greater Zurich region (+0.1 per cent). Ticino was the only region to record a decline in May (-0.6 per cent).
Offer prices for condominiums rise
There were also different developments in the asking prices for residential property last month: condominiums were advertised at 0.5 per cent higher values, whereas the prices of single-family homes declined slightly by -0.2 per cent.
Date 31st May 2023
The Swiss Real Estate Offer Index is published on the websites of ImmoScout24 and IAZI AG.
Detailed information and statistics on the development throughout Switzerland and on the developments in the various large regions can be found in the download area.
Rental offers for all of Switzerland (CHF/m2 per year)
Purchase offers for single-family homes all of Switzerland (CHF/m2)
Purchase offers for condominiums all of Switzerland (CHF/m2)