The increase in asking rents for advertised properties continued in November. Compared to the previous month, the national figure rose by 0.3 per cent, with an increase of 4 per cent compared to November 2022. Looking at the cantons, the majority of asking rents are also rising, although the degree of increase varies greatly. This is shown by current figures from the Homegate Rent Index.
The Homegate Rent Index for asking rents is compiled by the real estate marketplace Homegate in cooperation with Zürcher Kantonalbank (ZKB). It measures the monthly, quality-adjusted change in rents for new and re-let flats based on current market offers. Compared to the previous month, the index increased by 0.4 points in November and now stands at 124.2 points (plus 0.3 per cent). Compared to the previous year, asking rents rose by 4 per cent across Switzerland, as they did in October.
Change in the cantons
In a total of 20 out of 25 cantons (the Appenzell cantons are combined), asking rents rose in November. Only in five cantons, most notably in Uri (minus 1.5 per cent), did they fall in the previous month. However, the noticeable decline in Uri was because asking rents had risen quite significantly in October, and this has now corrected itself. Compared to September, Uri still shows a slight increase of 0.3 per cent. Among the cantons with increasing asking rents, Schwyz (plus 2.4 per cent) and Graubünden (plus 2.2 per cent) stand out in particular, both of which have reached new highs. All other cantons with increased asking rents remained below one per cent in November. Looking at the past year, as in previous months, all cantons recorded an increase compared to November 2022. This was especially the case in Valais (up 8.1 per cent), Zurich (up 7.6 per cent) and Schaffhausen (up 6.7 per cent).
Change in the cities
In terms of the eight cities analysed, asking rents also moved in both directions in November. While they rose last month, particularly in St. Gallen (plus 1.6 per cent) and Lausanne (plus 1.5 per cent), they only fell in Bern (minus 0.7 per cent) and Lugano (minus 0.5 per cent). Here, too, however, all cities show an increase compared to November 2022, most significantly in Zurich with an increase of 11.8 per cent.
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.
Fabian Korn
Communications Manager Real Estate
