July saw relatively stable asking rents in the housing market. They rose by just 0,2% at a national level last month, primarily due to higher increases in individual cantons. At the same time, asking rents fell in around a third of the cantons. This is shown by the current figures from the Homegate Rent Index. 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 rose slightly by 0.2 points in July and now stands at 128.7 points (up 0,2%). Compared to the previous year, asking rents have risen by 5,2% across Switzerland.
Change in the cantons
Only the cantons of Uri (up 1,9%), Glarus (up 0,8%), Ticino (up 0,7%) and Thurgau (up 0,6%) saw an increase in advertised rents of more than half a per cent in July. In the remaining cantons, however, advertised rents changed only minimally or declined in the past month. This was particularly the case in Nidwalden (minus 1,2%). At the same time, advertised rents increased across the board in July, in line with the trend over the last twelve months. The cantons of Schaffhausen (up 9,4%), Zug (up 9,3%) and Glarus (up 8,9%) led the way.
Change in the cities
In July, asking rents in the eight cities surveyed fluctuated within a range of around 2,5%. While they rose in Lugano (plus 1%) and Zurich (plus 0,7%) in particular, they fell significantly in Lucerne (minus 1,5%) and Geneva (minus 1,2%). Despite this development in July, the city of Lucerne recorded the highest year-on-year increase in asking rents (up 8,1%), followed by Zurich (up 7,9%). However, all other cities analysed also recorded an increase in advertised rents compared to July 2023.
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
