Asking rents increase again in June

In June, asking rents increased by 0,2% compared to the previous month. While both cantonal and municipal asking rents in Lucerne recorded significant increases, the trend is moving in the opposite direction, particularly in Geneva. A mixed picture also emerges for other cities. 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 increased by 0,3 points in June and now stands at 130,8 points (up 0,2%). Compared to the previous year, asking rents have risen by 1,8% across Switzerland.

Change in the cantons
Looking at the cantons, there were two clear upward swings in asking rents in June in particular: Schwyz (up 3,7%) and Lucerne (up 2,2%). While other cantons in the region recorded slightly lower asking rents in some cases compared to the previous month, a year-on-year comparison can certainly be seen as a Central Swiss effect. With the exception of Obwalden (up 0,4%), the local cantons in particular have seen significant increases compared to June 2024: Schwyz (up 8,4%), Nidwalden (up 7,4%), Zug (up 5,8%), Uri up (4,2%) and Lucerne (up 4,1%). In contrast, asking rents in June fell primarily in the combined Appenzell cantons (down 0,9%) and Geneva (down 0,5%), with Geneva being the only canton to show a negative trend compared to the previous year (down 0,6%). This indicates a trend of falling asking rents over several months.

Change in the cities
In the cities analysed, two clear camps emerged in June: In Lucerne (up 2,2%), Basel (up 0,7%), St. Gallen (up 0,4%) and Lugano (up 0,3%), asking rents rose, while they fell in Bern (down 1,0%), Geneva (down 0,9%), Zurich (down 0,6%) and Lausanne (down 0,2%). In line with the cantons, however, the annual trend for urban advertised rents remains positive with the exception of Geneva (down 1,9%), particularly in Lucerne (up 5,0%) and Zurich (up 3,5%). This means that in Lucerne and Geneva, the capital cities in particular are likely to be responsible for the respective cantonal trends.

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.