Asking rents fell slightly in August

In August, asking rents in Switzerland fell not only on a national average but also in the majority of cantons. Specifically, 21 out of 26 cantons recorded lower figures compared with the previous month. Nevertheless, asking rents are higher both nationally and in all cantons than they were a year ago. 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 decreased by 0,4 points in August and now stands at 133,6 points (down 0,3%). Compared to the previous year, asking rents have risen by 1,8% across Switzerland.

Changes across the cantons
In August, asking rents fell slightly in 21 of the 26 cantons. This follows a period in which national asking rents had either risen or remained stable. Asking rents saw the sharpest decline in the canton of Zug (down 3,0%), followed by Graubünden (down 2,3%) and Basel-Stadt (down 1,4%). Conversely, asking rents increased in five cantons, led by Geneva (up 0,7%), followed by Aargau (up 0,3%) and Solothurn (up 0,2%). However, this temporary dip does not alter the fact that, year-on-year, asking rents have continued to rise across all cantons. The most significant increases were recorded in Graubünden and Lucerne (up 4,6% each), Appenzell (up 3,1%; the Appenzell cantons are grouped together), and Glarus (up 3,0%).

Change in the cities
Among the cities surveyed, decreases also predominated in August. In particular, asking rents fell in St Gallen (down 1,7%) and Basel (down 1,6%). In Lugano, they fell by 1,1%, and in Zurich by 1,0%. By contrast, asking rents rose in Lausanne (up 1,0%) and Lucerne (up 0,8%). Geneva also saw a slight increase of 0,3%. Compared with the previous year, Lucerne continues to stand out with an increase of 6,9%. Lugano (up 3,3%) and Lausanne (up 3,1%) are also well above their figures for the same month last year. In St Gallen, however, asking rents are the only ones among the cities surveyed to be below the previous year’s level (down 1,2%).

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.