The asking rents for rental apartments in Switzerland rose slightly again in March. Compared to the previous month, they increased by 0.4 per cent; compared to the previous year, it is 5.5 per cent. All cantons confirm this annual trend: Within twelve months, the increases in Schaffhausen, Zurich, and Nidwalden are even in the double-digit range. This is shown by the current figures from the Homegate Rent Index.
The Homegate Rent Index for asking rents is compiled by the property marketplace Homegate in collaboration with Zürcher Kantonalbank (ZKB). It measures the monthly, quality-adjusted change in rental prices for new and re-let flats based on current market offers. Compared to the previous month, the index rose by 0.5 points in March and now stands at 126.8 points (up 0.4 per cent). Compared to the previous year, asking rents have risen by 5.5 per cent across Switzerland.
Change in the cantons
While cantons with declining asking rents in March are hand-picked – specifically in Appenzell (down 1.1 per cent; the Appenzell cantons are combined), Thurgau (down 0.6 per cent) and Basel Stadt (down 0.1 per cent) – asking rents are rising in all other cantons. Above all in Schaffhausen (up 3.1 per cent), Nidwalden (up 2.5 per cent) and Zurich (up 1.2 per cent). This means that three cantons, namely Schaffhausen (up 12.6 per cent), Zurich (up 11.4 per cent) and Schwyz (up 10.7 per cent), have broken into the realm of double-digit growth over the last twelve months.
Change in the cities
The eight cities analysed showed a similar picture for March compared to the previous month. Compared to February, asking rents only fell by 1.2 per cent in Lucerne and 0.2 per cent in Basel. All other cities surveyed recorded an increase, of up to 1.8 per cent in the case of Zurich. However, Zurich is also in first place when looking at the development over the last twelve months. The increase in the city on the Limmat is 11.4 per cent compared to March 2023. Although there was also a significant increase, the next closest rivals, Lausanne, Geneva and Lucerne, are still lagging far behind, with asking rents each almost 7 per cent higher than in the previous year.
Method of quality adjustment
The development of asking rents in Switzerland is adjusted for the different quality, location and size of the flats. The advantage of this so-called hedonic method is that the real rental price development for new and re-let flats is reflected on Homegate. The Homegate Rent Index is the oldest quality-adjusted rent index in Switzerland and is considered a reference source for real estate professionals to determine the price of rental properties.
Fabian Korn
Communications Manager
