Asking rents in Switzerland are still on the move, with fluctuations of varying magnitude depending on the canton. For February, there was a correction in places compared to January. On balance, however, asking rents have risen in all but two cantons compared to the previous year. This is shown by current figures from the Homegate Rent Index.
Zurich, 14 March 2023 – 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. The index decreased by 0.2 points in January compared to the previous month and now stands at 119.9 points (minus 0.2 per cent).
Change in the cantons
With a few exceptions, most cantons showed only slight changes in February compared to the previous month of plus or minus 0.5 per cent. Exceptions in the monthly review are, in particular, the cantons of Nidwalden (minus 2.2 per cent), Uri (minus 1.5 per cent) and Neuchâtel (minus 1.0 per cent). Compared to the previous year, however, all but two cantons continue to show an increase in asking rents. These have risen particularly in Graubünden (plus 5.8 per cent), Valais (plus 4.6 per cent) and Glarus (plus 4.2 per cent) over the past twelve months. Overall, 16 of 26 cantons show an increase of over 2.0 per cent compared to the previous year. Only Zug (minus 1.3 per cent, whereby the asking rents here fluctuate more strongly in comparison depending on the month) and Nidwalden (minus 0.5 per cent) recorded a decline in this respect.
Change in the cities
The development of asking rents has also been heterogeneous in the cities surveyed: While asking rents in Lugano rose by 1.7 per cent, they fell by the same amount in Lausanne. The city of Zurich also recorded a decrease of 1.4 per cent but remained clearly up by 5.3 per cent compared to the previous year. In general, asking rents in all the cities surveyed remained the same (Lausanne) or rose in a twelve-month comparison, including, in addition to Zurich, Lugano in particular (plus 6.8 per cent). For both the city and the canton of Zurich, the decrease in February is relative and needs to be taken into account alongside the significant increases in January. Both at cantonal and city level, asking rents have risen compared to December.
Method of quality adjustment
The development of asking rents in Switzerland is corrected 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.
The data for all cantons and cities since the start of the survey can be found in the latest release in the news section of SMG Swiss Marketplace Group Ltd. The next Homegate Rent Index is expected to be published on 11 April 2023.