From January until June, rents in Switzerland rose by 2.6 percent on average nationally, with prices in some regions being higher than in others. 

This is what emerges from the Homegate Rent Index published on July 15th.

This study found that nearly all the cantons recorded rising rents as compared to the same period last year, particularly Schaffhausen (up 10.8 percent), Zug (8.9 percent), and Zurich (8.7) percent.

And according to Martin Waeber, managing director of real estate at SMG Swiss Marketplace Group, this upward trend will not be reversed anytime soon — on the contrary, it is expected to continue.

“A further increase seems likely in view of the foreseeable developments in the rental market,” he said.

One reason is that residential construction will stagnate in the coming months, exacerbating the already dire housing shortage, especially in big cities.

“As long as the imbalance between low supply and high demand is not resolved in the long term, people looking for accommodation will continue to be confronted with rising rents.” Waeber added.

However, at least some relief for tenants may come in the form of referendums.

Fight against rent increases 

On November 24th, Swiss people will vote on a measure passed by the parliament, which lightens the procedure for lease terminations by landlords.

Since property owners have the right to increase rents for new tenants, Swiss Tenants’ Association (ASLOCA) sees this move as a way to allow landlords to up the prices each time a new lease contract is signed.

In response, ASLOCA has launched a referendum against this move, urging voters to reject the proposed legislation and thus avoid having to pay higher rents.

And another ASLOCA vote is in the making too.

An initiative against excessive rent hikes

This particular ASLOCA initiative aims to ban landlords from increasing rents arbitrarily by basing the hikes on prices of similar dwellings in the community —an excuse that some property owners use to raise prices.

The initiative also provides for automatic and regular rent control, according to ASLOCA’s vice-president Michael Töngi.

Currently, while tenants have the right to dispute such rent increases, many are afraid to undertake these procedures and get involved in litigation, Töngi said.

A new law (if approved by voters) would therefore ban this practice.

The date for this vote has not yet been set.

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