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Where in Switzerland are rent prices currently lowest — and highest?

Rents have gone up across most of Switzerland in October, but the increase is lesser in some regions than in others.

Published: 2 November 2022 16:11 CET
Where in Switzerland are rent prices currently lowest — and highest?
Swiss apartments are not only more expensive, but also scarcer. Photo by Pixabay

Overall, rents have increased by 1.4 percent on average in the country, though some areas have registered higher or lower hikes, according to ImmoScout 24’s Swiss Real Estate Offer Index released on Wednesday.

“October not only brought record-high temperatures, but also a significant increase in rental costs”, the survey found, adding that “tenants who are looking for an apartment right now must expect higher prices”.

The areas most affected by higher rents are central Switzerland and Zurich, which registered above-average increases, at 3.8 and 3.7 percent, respectively.

However, the situation is a bit better in the eastern part of the country, where rents rose by 0.6 percent, in the Central Plateau (0.4 percent), and in the Lake Geneva region (0.4 percent).

The latter statistic is (pleasantly) surprising, as the region, which encompasses Geneva and parts of Vaud, is among the most expensive in Switzerland.

On the other hand, rents actually fell in the northwestern regions (−0.6 percent) as well as in Ticino (−2.9 percent).

Looking ahead, the Index found that “it is quite possible that tenants will have to prepare for further increases in the coming months, as some of the inflation could be passed onto rents”.

One of the reasons for the upward trend — besides inflation — is “the growing demand caused by immigration and the housing shortage that is widespread in numerous regions” the survey found.

As The Local recently reported, property experts have been predicting for months a decline in the number of rental accommodations in most parts of the country.

According to Martin Neff, chief economist at Raiffeisen bank, the Swiss rental market is clearly heading towards a shortage. “Vacant housing will soon become scarce”, he warned.

Other than inflation and the “high demand-low supply” dynamic on the rental market, another reason for price hikes is because building standards are becoming more demanding and more expensive to implement. “It is therefore becoming more and more difficult to find cheap accommodations”, according to Robert Weinert, who carried out a new market analysis, Immo-Monitoring 2023.

At the same time, the cost of heating is also climbing, expected to increase the rent by 5 percent of an average gas- or oil-heated apartment next year, he said.

READ MORE: Switzerland set to experience housing shortage and (even) higher rents in 2023

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RENTING

Why are more and more residents moving out of Swiss cities?

Switzerland’s largest urban centres have recorded an exodus of sorts, with the increasing number of people relocating away from cities.

Published: 5 June 2024 13:48 CEST
Why are more and more residents moving out of Swiss cities?

While in the past city living appealed to many new residents, mostly due to employment opportunities and infrastructure, today largest urban centres are recording an exodus of sorts, with the increasing number of people relocating away from cities.

The reason, according to a UBS report, is that high rents in cities like Zurich and Geneva, are – literally— driving people away to the suburbs, where housing is less costly.

The advantage of a small and compact country like Switzerland is that the countryside — that is, small towns and villages that surround urban centres — lies in close proximity to the city, so no long commute is required.

“The outskirts of cities are becoming more attractive, as tenants can save considerable amounts on rent by relocating,” the report states.

As a result, “the country’s five major cities have recorded departures of around 15,000 people per year between 2020 and 2022, the highest in the last 40 years,” according to UBS.

“In Zurich, Bern and Geneva, annual net departures were three to four times more numerous than in the previous 10 years.”

Just how much cheaper is it to rent in the suburbs?

“For many families, savings are substantial,” UBS found. “In 2023, rents offered within a 10-minute travel radius were on average 16 percent lower outside cities.”

In the Zurich area, for instance, where housing costs are notoriously high, rents, after a 10-minute drive away from the city centre, are a fifth lower. After a 20 minute-commute, they are a third lower, and after 60 minutes, half as low.

UBS cited the example of Schlieren and Dübendorf, two towns located less than a 15-minute drive from the centre.

READ ALSO: Five commuter villages near Zurich where it’s easier to find an apartment

A similar trend is observed in another expensive city, Geneva.

However, rents in Lancy, a 10-minute drive from the centre, are 16 percent lower, and even more so (21 percent) in another nearby community, Vernier.

READ ALSO: The best commuter towns when working in Geneva

The price drop is slighter in Lausanne and Basel, where rents in nearby communities fall by 5 percent and 11percent, respectively.

‘A matter of time’

This ‘town-to-country’ trend is expected to continue, at least in the medium-term.

But does higher demand for housing on the outskirts mean that high rents will shift to the countryside as well?

“This depends on the ability of those areas to absorb the growing demand,” said Ursina Kubli, head of property research at Zurich Cantonal Bank. However, “the pressure on the housing market will increase in certain regions.” 

Another real estate expert,  Fredy Hasenmaile, agreed that “Switzerland is heading towards a housing shortage of unprecedented proportions. Housing shortage has not yet reached the countryside, but it is only a matter of time.” 

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