How rent prices vary in different cities in Switzerland
Rent prices in Switzerland might be forecast to decrease in 2020 but there are stark regional differences in how much tenants hand over to their landlords.
In 2019 Switzerland had over 75,000 unoccupied properties, the highest number in 20 years. Yet the rents have climbed in many parts of the country.
The 75,323 vacant properties correspond to 1.66 percent of Switzerland’s entire housing market.
Although prices vary significantly by region, on the Swiss scale the rents have increased by 12.1 percentage points, according to the index compiled by Homegate and the Cantonal Bank of Zurich.
However, some prices have remained almost unchanged since January 2016, when the initiative for more affordable housing was submitted to the Federal Chancellary. The initiative, to be voted on in a referendum on February 9th, calls for more money to be made available for social housing, including low interest loans for housing cooperatives.
But rent stability does not extend to big cities. In Zurich, rents have become 6.6 percentage points more expensive in the past four years. Basel follows with an increase of 2.6 points, and Bern’s rents have soared by 1.6 points.
So how much does it cost to rent an apartment in various parts of Switzerland?
Comparis.ch, an internet service which compares prices of various consumer goods and services in Switzerland, shows current rents in different locations throughout the country, taking into account the size of an apartment.
For instance, 4.5-room flats of about 100 square metres (usually a living room, kitchen, one or two bathrooms and three bedrooms) are most expensive in Geneva, where an average monthly rent is 3,820 francs, followed by Zurich at 3,073 francs, and Lausanne at 2,850 francs.
The lowest rents for a 4.5 apartment among Swiss cities are in St. Gallen — 2,004 francs.
Two-bedroom flats of 75 to 85 square metres are also most expensive in Geneva (2,680 francs), with Zurich in the second place, (2,489 francs), followed by Lausanne (2,194 francs), Again, St. Gallen is the cheapest, at 1,750 francs.
A much smaller, one-bedroom apartment (45 to 55 square metres) costs 1,734 francs in Zurich, 1,690 francs in Geneva, and 1,500 francs in Lausanne. The least costly housing of this size is in Biel/Bienne (1,125 francs).
Other cities favoured by internationals, such as Basel and Bern, fall in the middle, with rents ranging between 2,660 francs for the large apartments and 1,400 francs for smaller ones.
The price differences among cities and regions are due to various factors.
According to Comparis’s Frédéric Pappat, the high apartment rents in Zurich and Geneva are partly due to the housing shortage in those two cities.
“Building more densely would create more affordable housing, but it is too little done in these two cities”, he said.
“On the other hand, the fact that people looking for accommodation are willing to pay the price also plays a role. Both Zurich and Geneva have a large number of well-paid jobs”, Pappat added.
Lower rents in other cities can be explained by their higher vacancy rates.
“Investors are building where conditions still allow. In return, they accept more modest return prospects, “Pappat noted.
READ ALSO: How rent prices in Switzerland could fall next year
And in 2020?
A study published last Autumn by Wüest Partner predicted a 0.9% drop in rent prices in 2020. The property specialists were not the only ones.
"We assume that rents will continue to decline regionally in the coming year," said Claudio Saputelli, real estate expert at UBS.
But even if rent prices do fall the stark regional differences around Switzerland will remain.
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In 2019 Switzerland had over 75,000 unoccupied properties, the highest number in 20 years. Yet the rents have climbed in many parts of the country.
The 75,323 vacant properties correspond to 1.66 percent of Switzerland’s entire housing market.
Although prices vary significantly by region, on the Swiss scale the rents have increased by 12.1 percentage points, according to the index compiled by Homegate and the Cantonal Bank of Zurich.
However, some prices have remained almost unchanged since January 2016, when the initiative for more affordable housing was submitted to the Federal Chancellary. The initiative, to be voted on in a referendum on February 9th, calls for more money to be made available for social housing, including low interest loans for housing cooperatives.
But rent stability does not extend to big cities. In Zurich, rents have become 6.6 percentage points more expensive in the past four years. Basel follows with an increase of 2.6 points, and Bern’s rents have soared by 1.6 points.
So how much does it cost to rent an apartment in various parts of Switzerland?
Comparis.ch, an internet service which compares prices of various consumer goods and services in Switzerland, shows current rents in different locations throughout the country, taking into account the size of an apartment.
For instance, 4.5-room flats of about 100 square metres (usually a living room, kitchen, one or two bathrooms and three bedrooms) are most expensive in Geneva, where an average monthly rent is 3,820 francs, followed by Zurich at 3,073 francs, and Lausanne at 2,850 francs.
The lowest rents for a 4.5 apartment among Swiss cities are in St. Gallen — 2,004 francs.
Two-bedroom flats of 75 to 85 square metres are also most expensive in Geneva (2,680 francs), with Zurich in the second place, (2,489 francs), followed by Lausanne (2,194 francs), Again, St. Gallen is the cheapest, at 1,750 francs.
A much smaller, one-bedroom apartment (45 to 55 square metres) costs 1,734 francs in Zurich, 1,690 francs in Geneva, and 1,500 francs in Lausanne. The least costly housing of this size is in Biel/Bienne (1,125 francs).
Other cities favoured by internationals, such as Basel and Bern, fall in the middle, with rents ranging between 2,660 francs for the large apartments and 1,400 francs for smaller ones.
The price differences among cities and regions are due to various factors.
According to Comparis’s Frédéric Pappat, the high apartment rents in Zurich and Geneva are partly due to the housing shortage in those two cities.
“Building more densely would create more affordable housing, but it is too little done in these two cities”, he said.
“On the other hand, the fact that people looking for accommodation are willing to pay the price also plays a role. Both Zurich and Geneva have a large number of well-paid jobs”, Pappat added.
Lower rents in other cities can be explained by their higher vacancy rates.
“Investors are building where conditions still allow. In return, they accept more modest return prospects, “Pappat noted.
READ ALSO: How rent prices in Switzerland could fall next year
And in 2020?
A study published last Autumn by Wüest Partner predicted a 0.9% drop in rent prices in 2020. The property specialists were not the only ones.
"We assume that rents will continue to decline regionally in the coming year," said Claudio Saputelli, real estate expert at UBS.
But even if rent prices do fall the stark regional differences around Switzerland will remain.
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