• Switzerland edition
 
Expat influx continues to push up rents: report
Recently built apartments in Geneva. Photo: City of Geneva

Expat influx continues to push up rents: report

Published: 24 Apr 2013 11:10 GMT+02:00
Updated: 24 Apr 2013 11:10 GMT+02:00

After an increase of 2.3 percent in 2012, average rents for flats are forecast to rise a further 1.6 percent in 2013, real estate consultants Wüest & Partner say in a report released on Tuesday.

The higher rents are expected, although the rate of increase should slow due to an increase in home construction, the company said in its “Property Market Switzerland” report.

“Inward migration from abroad, which remained at a persistently high level in 2012, continues to represent the main driver for residential demand,” it said.

The Swiss economy continues to support demand for housing also with a moderate — but by international standards solid — growth path.

The country’s Gross Domestic Product is expected to grow between one and 1.5 percent this year following an estimated expansion of one percent last year.

At the end of 2012, around 75,600 homes were under construction, a 2.5 percent increase from the previous year.

The increase in supply is expected to reduce the upward pressure on rents in parts of the country.

But in the Lake Geneva and Zurich regions, where demand continues to outstrip supply, rents are expected to rise 2.5 percent and 2.4 percent respectively.

Expats who have recently arrived in the country face having to pay higher than average because of a division in the residential market.

Rents under existing agreements, which are linked to low mortgage rates, have remained on a downward trend, Wüest & Partner note.

But asking rents and rents under new lease agreements have risen 25 percent and 13 percent respectively since 2005.

The report predicts that the price of condominiums (owner-occupied apartments) will rise an average of 0.9 percent, which represents a slowdown from recent years.

“Booming housing markets such as Geneva, Lausanne, Vevey and Saanen have recently recorded below-average price increases,” it said.

And in Central Switzerland asking prices are currently “moving sideways at high levels”.

Meanwhile, policies introduced last year to dampen the Swiss mortgage market appear to have had little impact on curbing demand for home ownership, the report said.

Single-family house prices increased in all cantons in 2012 and the asking price index continued to rise in the first quarter of this year, although at a slower pace.

Malcolm Curtis (news@thelocal.ch)

Your comments about this article

Today's headlines
FC Basel beat Liverpool in 1-0 home victory
Basel's goal-scoring forward Marco Streller (left) vies with Liverpool's Spanish defender Jose Enrique during match. Photo: Fabrice Coffrini/AFP

FC Basel beat Liverpool in 1-0 home victory

FC Basel defeated English side Liverpool 1-0 in a Champions League game played on Wednesday night to a cheering home crowd at St. Jakob Park. READ  

Woman's potato fall 'not restaurant’s fault': court
Photo: The Local

Woman's potato fall 'not restaurant’s fault': court

A woman who was seriously injured after stepping on a potato in a self-service restaurant in the canton of Zurich has failed to get a court to back her complaint, while a judge warned that it was up to customers to watch where they were walking. READ  

Foreign women have rising share of newborns
Photo: Waltraud Grubitzsch/AFP/Getty Images

Foreign women have rising share of newborns

More than one in three babies were born in Switzerland last year to foreign mothers, a proportion that has doubled in the past 20 years, according to government figures. READ  

National tax planned to cut water micropollutants
The Terre Sainte sewage treatment plant in the canton of Vaud. Photo: Canton of Vaud

National tax planned to cut water micropollutants

Starting in 2016, an annual tax of up to nine francs ($9.43) per resident will help finance equipment in around 100 sewage treatment plants across Switzerland to prevent microscopic pollutants from flowing into lakes and rivers. READ  

UBS pays €1.1-billion bail in French 'tax fraud' case
Photo: UBS

UBS pays €1.1-billion bail in French 'tax fraud' case

Swiss banking giant UBS has made a €1.1-billion ($1.4-billion) bail payment for allegedly helping rich French clients to hide money in Switzerland, a lawyer for the bank said on Tuesday. READ  

Senior dupes European court in suicide snafu
Photo: AFP

Senior dupes European court in suicide snafu

The European rights court on Tuesday withdrew its criticism of Switzerland's assisted suicide laws after it emerged an octogenarian who filed the initial complaint had duped both the court and her lawyer in the case. READ  

Wawrinka knocked out early at Japan Open
The top seeded Swiss struggled to make his mark. Photo: Toshifumi Kitamura/AFP

Wawrinka knocked out early at Japan Open

Tatsuma Ito followed the winning example of Japanese compatriot Kei Nishikori as the number 103-ranked local dumped top seed Stan Wawrinka out 7-5, 6-2 in the first round of the Japan Open tennis tournament on Tuesday. READ  

Swiss group's bid for cat quotas creates buzz
Photo: Joel Dietle

Swiss group's bid for cat quotas creates buzz

A proposal by a Swiss animal protection group to set a limit of one cat per household in Switzerland is attracting international attention. READ  

Basel tackle Liverpool in Champions League duel
FC Basel coach Paulo Sousa: "We'll be stronger." Photo: Javier Soriano/AFP

Basel tackle Liverpool in Champions League duel

Liverpool are confident that they can put a frustrating run of domestic form behind them when they face FC Basel in Switzerland in Champions League Group B football action on Wednesday. READ  

Bern police seek help after boy dies in woods
Köniz church, near where the body was found. Photo: Ikiwaner/Wikimedia Commons

Bern police seek help after boy dies in woods

Police in the canton of Bern on Monday launched a bid for help from the public after the body of a 15-year-old boy was found in the woods near Köniz. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
Scientific study rings alarm over wellbeing of Swiss cows with bells
Business & Money
Switzerland's residents top world financial wealth list: Allianz report
National
Saint Maurice abbey in Valais celebrates 1,500 years of history
National
Streaming movie video service Netflix arrives in Switzerland
National
Professional Chilean base jumper dives to death in Swiss Alps
Education
ETH Zurich remains top university in Europe: QS world rankings
National
Switzerland's housing vacancy rate jumps: new federal figures
National
Swiss football club fires team masseuse over explicit sex video
National
Geneva police arrest easyJet passenger over hand luggage row
Business & Money
Latest forecasts for Swiss economic growth turn less bullish
Sport
Formula One legend Schumacher to continue treatment at Swiss home
National
Former federal planning official calls for nine Swiss cantons
Features
The Local gets the lowdown on mushroom picking in Switzerland
National
Virgin boss Richard Branson's son rescued from peak of Matterhorn
National
Swiss President Didier Burkhalter's commute turns Twitter sensation
Features
High-tech cameras give dizzy view of Eiger's north face (VIDEO)
Politics
Baden municipal council strips 'nude selfies mayor' of duties
Business & Money
Switzerland stays atop competitiveness table for sixth year
National
Federal parliament secretary agrees to step down over nude selfies
National
Swiss residents pick Swedes as ideal European soul mates: survey
National
Zurich officials call project to move prostitutes to 'sex boxes' a success
National
Swiss gays recognized as parents of child born to surrogate mother
Health
Increase in mountain bike accidents keeps Swiss hospitals busy
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

2,122
jobs available