Skyrocketing Apartment Rental Prices in Switzerland: Latest Updates

Discover the latest updates on Swiss rental prices for apartments as they continue to surge. Stay informed and gain insight into the ongoing trends in the Swiss housing market.

In Switzerland, the rental market witnessed a continued upward trend in apartment rents throughout October. However, distinct variations emerged among the different cantons. According to the Homegate rent index, which was published on Monday, asking rents for new and re-rentable apartments increased by 0.4% compared to the previous month. The index itself saw a rise of 0.5 points, reaching 123.8 points. On an annual basis, asking rents experienced an average growth of 4% in Switzerland during October.

The rental price development varied significantly across the individual cantons. Changes in rental prices compared to September ranged from a decrease of 0.5% to an increase of 2.9%. Notably, there was a substantial rise in rents in the cantons of Glarus (+2.9%), Schaffhausen (+2.3%), and Uri (+1.8%). However, Obwalden and Nidwalden (both -0.5%) as well as Schwyz (-0.3%) witnessed declines. Despite these differences, all cantons displayed an upward trend in price changes when compared to the same month in the previous year. The greatest year-over-year increase in rents was observed in Glarus (+7.5%), followed by Valais (+6.9%), the two cantons of Appenzell (+6.6%), and Zurich (+6.3%).

In the cities, the rental fluctuations in October were relatively less prominent. Lucerne experienced a notable increase of 1.8%, while rents in St. Gallen and Geneva saw a decrease of 0.4% each. Looking at the annual changes, Zurich remained the leader with a substantial increase of 10%, followed by Geneva (+4.3%). It is worth mentioning that the Homegate rent index for asking rents is compiled by the real estate marketplace Homegate in collaboration with Zürcher Kantonalbank (ZKB). This index measures the monthly quality-adjusted change in rental prices for new and re-rentable apartments, based on current market offers.

In conclusion, although rental prices have risen on average throughout Switzerland, there are regional disparities across the cantons. While some areas experienced significant rental price growth, others witnessed slight declines or more moderate increases. The cities demonstrated relatively stable rental markets, with minor fluctuations seen in certain areas. The Homegate rent index serves as a valuable tool for tracking these changes and providing insights into the dynamic rental landscape in Switzerland.