Supply rents rise

Zürich , August 2023

According to the Homegate rent index, asking rents in Switzerland rose by 0.5 per cent in July compared to the previous month. In the canton of Zurich, the increase was only 0.2 per cent. Compared to the previous year, asking rents rose by 4 per cent across Switzerland.

The monthly rental index compiled by the digital real estate marketplace Homegate in cooperation with Zürcher Kantonalbank closed at 122.4 points in July. Compared to the previous month, the index increased by 0.6 points or 0.5 percent, SMG Swiss Marketplace Group AG informed in a press release. Compared to the previous year, asking rents rose by 4 per cent across Switzerland. There is a pause in the increase in the canton and city of Zurich. However, both show increases compared to the previous year.

In July, asking rents rose the most in the cantons of Basel-Stadt, St.Gallen and Vaud, by 0.8 per cent each. There was no increase of more than 1 per cent in any canton. Asking rents in the canton of Zurich were below the national figure with an increase of 0.2 per cent.

Only six cantons showed a decrease in asking rents, led by the cantons of Schwyz (1.9 per cent) and Graubünden (1.3 per cent). Compared to the previous year, however, asking rents have risen across the board, including in Zurich by 6.1 per cent. And the canton of Schwyz also shows a clear increase over the last year (6.4 per cent).

The Swiss cities surveyed show that asking rents for the city of Zurich did not change in July. Nevertheless, they have risen significantly by 10.1 per cent compared to the previous year. The other cities also show increases in asking rents of between 2.2 per cent in Lucerne and 7.8 per cent in Lugano compared to July 2022. In July, asking rents rose everywhere except in the city of Zurich, with the largest increases in Lucerne (1.7 per cent) and St.Gallen (1.2 per cent).

The next Homegate rent index is expected to be published on 14 September.

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