In November, asking rents at the national level rose by 0,3% compared to the previous month. This means that the brief decline in October has levelled out again, and advertised rents are back at the level of September 2024. However, there was another increase of 3,1% compared to the previous year. 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 increased by 0,4 points in November and now stands at 128,1 points (up 0,3%). Compared to the previous year, asking rents have risen by 3,1% across Switzerland.
Change in the cantons
Looking at the individual cantons, there were only a few major changes in November compared to the previous month. Specifically, advertised rents only climbed above the 2% mark in Nidwalden (up 2,1%), followed by the cantons of Schaffhausen (up 1,6%), Valais (up 1,4%) and Schwyz (up 1,3%). However, what is striking in November is a significant fall of 4,4% in advertised rents in the canton of Graubünden. The last time the current index value fell below this was in October 2023, although such outliers are usually very temporary changes. Therefore, only next month’s figures will provide more information as to whether the canton of Graubünden will continue on its distinctive path towards the end of the year.
Change in the cities
However, rental price trends in the cities analysed are returning to the expected normality. This is particularly evident in Zurich and Lausanne, both of which recorded an increase of 1,6% in November, primarily offsetting temporary declines in October. Compared to September, the index values in November are only slightly higher. Meanwhile, the other cities analysed show changes of 0,5% or less, with slight declines compared to the previous month in Geneva (minus 0,2%) and Lugano (minus 0,1%). Compared to the previous year, however, asking rents have risen everywhere, in some cases significantly, especially in Lucerne, with an increase of 7%.
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.
