For once, asking rents fell slightly nationally and in most cantons in August. Specifically, they fell by 0,6% at the national level last month. This means they are back at the level of April 2024. The sharp increase since then suggests that this is only a temporary easing of rent prices. 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 fell by 0.8 points in August and now stands at 127.9 points (down 0,6%). Compared to the previous year, asking rents have risen by 4,2% across Switzerland.
Change in the cantons
An unusually high number of negative signs characterise the August figures at the cantonal level. For example, asking rents only rose last month in the cantons of Graubünden (plus 1,3%), Nidwalden (plus 0,9%) and Zug (plus 0,3%). In all other cantons, the rents on offer fell or remained at the same level (except in the cantons of Appenzell, which are combined). The largest declines were recorded in the cantons of Ticino (minus 1,7%), Obwalden (minus 1,3% ), Neuchâtel and Jura (minus 1,2% each). Irrespective of this current trend, asking rents have risen year-on-year in all cantons, in some cases significantly – especially in Graubünden (up 11,7%) and Zug (up 11,4 %).
Change in the cities
In the cities analysed, asking rents also took a breather in the late summer. Only in the city of Zurich did they continue to rise in August (plus 0,7%), deviating from the cantonal trend (canton of Zurich with minus 0,1%). In contrast, rents on offer fell by more than 1% – at least in August – in the cities of St. Gallen and Bern (minus 1,2% each) and Lugano (minus 1,1% cent). Analogous to the cantons, however, the picture compared to last year’s August is one of consistent increases for the cities analysed.
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.
