Rents are expected to continue the upward trend – by 3 to 5 percent annually – in the coming years, according to Martin Tschirren, director of the Federal Housing Office.
He added that this situation isn't just affecting large cities, but is increasingly impacting smaller towns as well.
That's mostly because people who are unable to find housing in urban areas, tend to look for affordable accommodation farther away.
As is the case currently, the hike will impact new tenants - that is, those who are moving into new rental flats and houses.
Why are the rents rising?
It's mainly down to the high demand for homes in Switzerland, while not enough new ones are being built.
"The demand for housing continues to exceed supply,” Tschirren said, pointing out that in the last decade, the number of building permits has fallen by a third.
"Construction activity has not yet decreased by the same proportion, but it will,” he added.
To remedy this situation and ensure that more residential dwellings are being built, “the possibility of filing appeals [against new constructions] should be restricted,” Tschirren noted.
What does this mean?
Typically, before a new project can be green-lighted, citizens have the right to object – and do so, often for self-serving rather than legitimate reasons.
These actions significantly delay the building permits, or scrap them altogether.
The idea of restricting appeals resonates with some legislators as well.
"People must be able to oppose a project, that's obvious. But the circle of those who can object should be reduced,” said Centre Party deputy Philipp Matthias Bregy.
“We also need to consider filing charges against those who lodge unjustified appeals and unnecessarily delay projects,” he added.
Why are new tenants especially impacted by higher rents?
After a move to a new apartment, even a smaller one than before, a large portion of tenants are paying much more to cover the cost of new digs.
That’s because when an old tenant moves out and a new one arrives, landlords have the right to increase the rent by up to 10 percent – and many do.
READ ALSO: Can you really save money on rent if you move into a smaller flat in Switzerland?
Comments