Rental market sees a pause in price rises in May

Asking rents on the Swiss rental housing market levelled off in May, rising only slightly. However, this does not alter the fact that asking rents have risen significantly since May 2025. At the cantonal level, too, advertised rents have risen across the board over the past year, whilst month-on-month fluctuations have occurred. This is shown by the latest 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 increased by 0,2 points in May and now stands at 133,7 points (up 0,2%). Compared to the previous year, asking rents have risen by 2,5% across Switzerland.

Changes across the cantons
Across the cantons, the range of fluctuations in advertised rents in May 2026 extends from a rise of 2,1% in Appenzell (the Appenzell cantons are grouped together) to a fall of 1,9% in Nidwalden. In addition, four other cantons also recorded an increase of more than one percentage point, including Graubünden (up 1,8%). Whilst Appenzell thus reached a new high in May (up 4,6% on the previous year), advertised rents in the canton of Graubünden are now returning to previous levels following a three-month low – though they remain below the peak recorded in December 2025. Compared with the previous year, the highest price increase – unaffected by the decline in May 2026 – was in Nidwalden (up 7,7%), followed by Graubünden (up 5,9%) and Uri (up 5,8%).

Change in the cities
Among the cities surveyed, Lugano not only recorded the highest increase (up 1,7%) compared with the previous month, but also reached a new all-time high for advertised rents. Compared with the previous year, advertised rents have risen by 4,5%. With an increase of 7,2%, this annual trend is surpassed only by the city of Lucerne. In Zurich, by contrast, both in the city and at the cantonal level, asking rents have remained virtually unchanged from the previous month.

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.