Asking rents appear to be stagnating, but fluctuate regionally

Swiss asking rents have risen by 0,1% over the last two months – what at first glance looks like a plateau is by no means the case for all regions of Switzerland. Instead, there have been fluctuations in November as well. Year-on-year, all price trends are pointing upwards, with some even reaching double digits. 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 0,1 points in November and now stands at 131,7 points (up 0,1%). Compared to the previous year, asking rents have risen by 2,8% across Switzerland.

Change in the cantons
With an increase of 3,3%, Graubünden not only recorded the highest increase compared to the previous month in November, but asking rents also rose significantly by 10,5% compared to the previous year. In terms of monthly development, the combined cantons of Appenzell (up 2,2%) also recorded the second-highest increase, followed by several cantons with an increase of over 1,5%. At the other end of the spectrum in November were the cantons of Schwyz (down 1,2%) and Ticino (down 0,9%). However, compared to November 2024, advertised rents did not decline in any canton. Instead, in addition to the aforementioned canton of Graubünden, the cantons of Zug (up 8,9%) and Nidwalden (up 7,3%) showed the next highest price increases.

Change in the cities
The cities surveyed also showed significant fluctuations in asking rents in both directions in November. Geneva recorded the largest increase (up 2,3%), while Lugano saw a significant decline (down 1,6%). The remaining six cities fluctuated within a range of plus/minus 0,5%. As in the cantons, asking rents rose across the board year-on-year, with Lucerne (up 5,9%) and Geneva (up 5%) leading the way. It is noteworthy that although the city of Zurich has had the highest value since the index was first compiled in 2016, its prices have risen less sharply than in other cities in a year-on-year comparison (up 3,4%).

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.