Rental market stagnates, cantons slip into the red

In Switzerland, asking rents remained virtually unchanged in July 2026, although they fell in 15 cantons. The national index remained at 134 points. This reflects a noticeable summer lull, whilst the year-on-year comparison, at plus 2.4 per cent, still does not indicate any easing of price pressure.

The nationwide standstill masks significant regional fluctuations. The Homegate Rent Index remained unchanged at 134 points in July 2026 compared with the previous month, having risen slightly to this level in June. Year-on-year, however, advertised rents were 2.4 per cent higher than in July 2025.

The extent of the decline is particularly striking. In 15 cantons, advertised rents fell in July. Nidwalden was hardest hit, with a fall of 4.0 per cent. This was followed by Schwyz, down 1.9 per cent, and Geneva and Uri, both down 1.5 per cent. Zurich also saw a decline of 0.4 per cent, whilst St Gallen rose by 0.7 per cent and Ticino by 0.6 per cent.

Central Switzerland remains buoyant
This snapshot does little to alter the bigger picture. Compared with the previous year, asking rents remain well above the previous year’s levels, particularly in cantons popular with tourists and those attracting new residents. Graubünden recorded a rise of 7.1 per cent in July, Zug 5.0 per cent and Lucerne 4.2 per cent. Back in June, the index had already stood at 134 points nationwide, representing a year-on-year rise of 2.5 per cent. This points to a market that fluctuates in the short term but remains at a high level.

Lugano bucks the trend
Of the cities surveyed, only Lugano saw an increase in July. There, advertised rents rose by 1.9 per cent compared with the previous month and were 6.3 per cent higher than the previous year. The city of Lucerne recorded the sharpest monthly decline, at minus 2.4 per cent. This correction was twice as steep as that for the canton of Lucerne as a whole, which stood at minus 1.2 per cent. For landlords, investors and property managers, this means that the rental market is currently best analysed at a local rather than a national level.

Quality over raw price
The index compiled by Homegate and Zürcher Kantonalbank measures the quality-adjusted trend in advertised rental prices for new and re-let flats. Differences in location, size and standard are therefore factored out. This is precisely why the July findings are relevant to market participants. The widespread cooling across the cantons does not signal a general easing of the market, but it does show just how fragile the recent price dynamics have become in certain sub-markets.