Landlords of residential properties increased their asking prices in February, which has already compensated for the decline observed in the previous month. On the other hand, sellers of single-family houses and condominiums have hardly made any price adjustments.
Tenants looking for a home must currently expect rising prices. Residential properties were advertised at 1.2 per cent higher values in February, according to the Swiss Real Estate Offer Index, compiled by SMG Swiss Marketplace Group in cooperation with the real estate consulting firm IAZI.
Depending on the region, there are clear differences in the development of rents. In the greater Zurich region, rents were increased by 2.5 per cent, and in central Switzerland, with its hotspot Zug by 1.7 per cent. Slightly lower price increases were visible in the Lake Geneva region (0.9 per cent) as well as in northwestern Switzerland (0.7 per cent) and Mittelland (0.6 per cent). Rents remained virtually unchanged in eastern Switzerland (0.3 per cent) and in Ticino (-0.1 per cent). The rise in rents is even more pronounced when looking at the past twelve months. On an annual basis, rents were raised on a national average by 3.8 per cent.
The current trend of rising rent asking prices is likely to continue in the current year. While immigration to Switzerland continues unabated due to positive economic developments on the one hand and the war in Ukraine on the other, rental housing construction is lagging behind – resulting in a housing shortage. “There is still no entitlement to an increase in the majority of existing tenancies, as the reference interest rate relevant under tenancy law will remain at 1.25 per cent for the time being, as recently announced by the Federal Office for Housing. However, an increase in the reference interest rate to 1.5 per cent at the next expected announcement at the beginning of June is becoming increasingly likely,” says Martin Waeber, Managing Director Real Estate, SMG Swiss Marketplace Group.
Residential property prices almost unchanged
Anyone wishing to buy a single-family house (-0.2 per cent) or a condominium (0.4 per cent) was confronted with practically unchanged asking prices in February. The median asking price per square metre for single-family houses is thus CHF 7,407, and for condominiums, CHF 8,499.
Date 28th February 2023
The Swiss Real Estate Offer Index is published on the websites of ImmoScout24 and IAZI AG.
Detailed information and statistics on developments throughout Switzerland including the various major regions can be found in the download area.
Rental offers for all of Switzerland (CHF/m2 per year)
Purchase offers for single-family houses all of Switzerland (CHF/m2)
Purchase offers for condominiums all of Switzerland (CHF/m2)
Senior Communications Manager Real Estate & Mediensprecher