In July, the rent index calculated by Homegate and the Zurich Cantonal Bank edged up 0.1 percent over the previous month. This is 1.7 percent higher than at the same time in 2024.
As is usually the case with Switzerland’s housing market (whether rentals or owned properties), prices vary from one region to another.
Where did rents go up most?
According to Homegate, which is part of SMG Swiss Marketplace Group, the strongest increase compared to 2024 was recorded in Schwyz (+3.5 percent), followed by Graubünden, Glarus, and the two Appenzells, where rents went up by 2.5 percent.
In terms of municipalities, Zurich rents have increased by 1.7 percent since the beginning of the year — though significantly less than the 3.1 percent recorded in the same period in 2024.
In other Swiss cities, too, rent increases have varied widely since the beginning of the year.
Lucerne, for instance, recorded the highest increase (1.8 percent) compared to December 2024, followed by Zurich (1.7 pecent), as well as Bern and Lugano (both up 1.4 percent).
Why have the rent hikes been relatively modest, despite the housing shortage?
Chalk it up to a lower immigration rate.
“In the first five months of 2025, net immigration to Switzerland was 11 percent lower than in the same period of 2024,” said Martin Waeber, SMG’s managing director.
This goes to prove that foreign nationals play a major role in Switzerland’s housing market — both in terms of shortages and rents.
READ ALSO: Just how much are foreigners to blame for Switzerland's housing shortage?
What is the forecast for future rents?
According to Waeber, a moderate increase is likely in coming months and years.
"The stimulus generated by construction activity is unlikely to be enough to offset the current trend in rents," he noted.
As a result, the number of vacant rental units is expected to decline again, which will lead to “a less significant, but nonetheless sustained, increase in rents.”
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