How property and rental prices in Switzerland are rising
Buying a property in Switzerland is still getting more expensive every month, and rents are set to increase too.
Property prices continue to rise in September in Switzerland, despite the end of the negative interest rate policy, the Swiss Real Estate Offer Index, jointly compiled by ImmoScout24, SMG Swiss Marketplace Group and Cifi, said.
"Strong demand for living space and limited supply are driving the Swiss real estate market, despite the end of the negative interest rate policy," the study stated.
During the month under review, house prices rose by 0.8%, while the price of a flat increased by 0.2%.
On the other hand, tenants looking for a flat are seeing basically the same prices as in August, since rents grew an average of 0.3 percent month on month, according to the index.
Rents should rise too
Immoscout24 said they expect rents to increase as demand soars with increasing migration levels to Switzerland.
"Due to the strong immigration in the current year, rents are likely to increase in the coming months. The increasingly scarce supply of flats also contributes to this assessment", it said.
"According to the current vacancy census, around 60,000 flats were vacant in Switzerland on 1 June 2022, which is 10,000 fewer than the previous year.
"The vacancy rate is 1.3 per cent", explained Martin Waeber, Managing Director Real Estate, SMG Swiss Marketplace Group. "According to the official definition, there is, therefore, an overall housing shortage, although the situation varies regionally here as well," he added.
Rental prices also vary regionally. Though the national average prices increased by 0.3 percent from the end of September compared to the month before, some regions saw rents soaring while others had prices going down.
While the advertised values in Ticino (3.1 percent) and the Central Plateau (2.1 percent) have risen significantly, there are hardly any changes in Northwestern Switzerland (0.3 percent), the Lake Geneva region (0.3 percent) and Eastern Switzerland (0.2 percent).
In contrast, rents fell in central Switzerland (-0.7 percent) and in the greater Zurich region (-0.8 percent).