The city bases its reassurance on two analyses by the statistics service published in 2026. The studies examined the housing market, the supply of and demand for flats with moderate rents, and the use of housing, all based on data from 2025. According to this analysis, the supply of moderately priced flats exceeds the calculated demand, whilst another problem is becoming more acute in terms of the housing stock actually in use.
Vacancies are eating into available housing
In 2025, 9.1 per cent of primary residences in Lugano were permanently vacant. In 2020, the figure was 7.2 per cent. The city distinguishes this figure from the traditional vacancy rate of just over 1 per cent, as different calculation methods are used. For the market, however, the finding remains a cause for concern, as flats that remain unused over the long term are missing from the actual available supply.
Moderate rents appear statistically less strained
For the moderate-rent segment, Lugano estimates demand at 12 per cent against a supply of 17 per cent. Accordingly, Mayor Michele Foletti does not currently see any excessive pressure, as is the case in Geneva or Zurich. At the same time, the city intends to incorporate the findings into the revision of its development plans and its ongoing housing policy. An internal working group has been in place for around a year to address this.
Buying and renting are diverging
For owner-occupied properties, the median sale price in 2025 stood at 8,266 Swiss francs per square metre. That is 3 per cent less than in 2024, but 6.5 per cent more than in 2019. As for rents, whilst the city’s analysis for 2025 shows a 2 per cent decrease compared with 2024, there is still a 13.5 per cent increase compared with 2019. At the same time, service charges continued to rise, mainly due to energy prices.
The discrepancy remains a politically sensitive issue
It is precisely this finding that clashes with supply indices such as those from Homegate and the Zurich Cantonal Bank, which have repeatedly reported significant rent increases for Lugano. The city attributes the discrepancy to a different methodology and a broader view of the housing stock actually in use. For owners, investors and planners, this is more than just a statistic. It determines whether Lugano must tackle primarily a pricing problem, a utilisation problem, or both at the same time.
