• 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
Two kids suspected in fire that razed church
Photo: Eglise Catholique Romaine-Geneve

Two kids suspected in fire that razed church

Two children under the age of ten are suspected of arson after a catholic church in a suburban area of the canton of Geneva went up in flames at the weekend. READ  

Woman dies in 200-metre Valais mountain fall
Photo: Valais cantonal police

Woman dies in 200-metre Valais mountain fall

A 59-year-old Swiss woman died following a 200-metre fall while hiking on the Grand Muveran mountain in the Bernese Alps, Valais cantonal police said on Sunday. READ  

Swiss head to Davis Cup final after beating Italy
Switzerland's captain Severin Lüthi (left) and Stan Wawrinka carry teammate Roger Federer as they celebrate winning the Davis Cup semifinal between Switzerland and Italy. Photo: Fabrice Coffrini/AFP

Swiss head to Davis Cup final after beating Italy

France will host Switzerland in the Davis Cup tennis tournament final in November after Roger Federer gave the Swiss the winning point against Italy in Geneva on Sunday. READ  

Swiss performers held in Croatia over naked walk
Artwork by the late Croatian artist and performer Tomislav Gotovac. Photo: AFP

Swiss performers held in Croatia over naked walk

Police detained three Swiss performers who were walking naked in downtown Zagreb as part of their show at an alternative art festival in the Croatian capital on Saturday. READ  

Swiss banks at post-secrecy crossroads
Photo: AFP

Swiss banks at post-secrecy crossroads

As Switzerland's long-cherished banking secrecy practices evaporate, the institutions that helped create the world's largest offshore tax haven are dramatically rethinking their business models in a bid to survive. READ  

Swiss cops nab diamond theft suspect from China
Photo: AFP

Swiss cops nab diamond theft suspect from China

A suspected Chinese jewellery thief accused of stealing millions of dollars worth of diamonds across the world has been arrested in Zurich during another robbery, Interpol says. READ  

EasyJet passenger held over hand luggage row
Photo: Shutterstock

EasyJet passenger held over hand luggage row

Police in Geneva arrested an Italian woman over a spat about the size of her hand luggage when boarding an easyJet flight from the Swiss city to Venice, Italian media have reported. READ  

Switzerland steps up aid to Ebola-hit countries
Supplies are unloaded in Guinea under the supervision of an MSF employee. Photo: Cellou Binani/AFP

Switzerland steps up aid to Ebola-hit countries

Switzerland has pledged an additional two million francs in aid to fight the Ebola virus in West Africa which has killed over 2,400 people since the outbreak began in March. READ  

Thieves smash up Jura factory using tractor
Photo: Tony Alter

Thieves smash up Jura factory using tractor

A group of thieves used a tractor to burgle a watchmaking facility in Alle, in the canton of Jura, causing damage estimated at hundreds of thousands of francs, police have reported. READ  

Basel debates second Swiss right-to-die clinic
The Dignitas clinic is currently the only assisted dying facility in Switzerland. Photo: Sebastian Derungs/AFP

Basel debates second Swiss right-to-die clinic

Exit, the Swiss organization that helps people to end their own lives, has asked local authorities for permission to change its Basel office into a facility for assisted suicide. If agreed, the building would become the second such facility in Switzerland, after Dignitas. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
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
Sponsored Article
Car insurance made easy online with St Bernard
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
National
Swiss policeman belatedly honoured for saving Jews from Holocaust
National
'Suicide tourists' to Switzerland double in three years: study
National
Swiss Post SMS scheme gets stamp of approval after pilot project
Business & Money
American tax evasion crackdown hits Swiss private banks' bottom line
Politics
Woman accuses Swiss politician in nude selfies scandal of lying
National
Villagers in Graubünden valley reject hydro plant to protect vultures
Business & Money
Court rules against appellation for absinthe from Neuchâtel valley
National
Two hundred passengers rescued after landslide derails Swiss train
Travel
Switzerland remains world champion for per capita train travel
Culture
Social media backlash forces Polanski to bow out of Locarno film festival
National
Two policemen identified among three Israelis killed in train crash
Features
Untouched Alps: The Local explores Switzerland's only national park
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

2,048
jobs available