How rent prices in Switzerland could fall in some parts of the country in 2020
If you are a tenant or are looking to rent an appartment in Switzerland, you may be in luck.
Due to an ongoing construction of new apartment buildings and the higher number of existing vacancies, housing experts predict that rents will decrease in the coming months.
According to reports from the “Tages-Anzeiger” newspaper, between 5,000 and 8,000 apartments will be empty throughout the country in 2020, around 3,000 more than last year.
"We assume that rents will continue to decline regionally in the coming year," said Claudio Saputelli, real estate expert at UBS.
Housing prices depend on the region.
Not surprisingly, the most expensive apartments are in big cities or areas with a large number of multinational companies. Statistics show that canton Zug has the highest average monthly rent (1,837 francs).
In Geneva, average monthly rent is 1,416 francs, in Vaud CHF1,330, and in Zurich and Basel it is CHF1,550 and CHF1,241, respectively.
The lowest rents can be found in rural areas and in certain cantons, such as Uri, Glarus, Appenzell Innerrhoden, Obwalden, Thurgau, and Jura.
But even high-cost cities may not be beyond reach to some expats. Due to the low interest rates, rental prices there could be reduced by about 3 percent in the second quarter of 2020, experts said.
The majority of Swiss residents are tenants, as house prices are high, having risen by 6 percent last year.
However, renting offers certain financial advantages: Swiss law is more favourable for tenants, as they pay significantly less income tax than homeowners.